The impact the maquila and export manufacturing Industry has in the state of Tamaulipas repercussions in different sectors such as transportation, hotels, food industry, industrial parks and the commerce, to mention a few.
It is clear that this country is one of the most attractive investment destination internationally, and is that the context from the maquila and export manufacturing industry in Mexico has different spectrum that make it attractive.
Talking in IMMEX’s general terms in Mexico, it is important to mention that there are currently 6,140 companies on the IMMEX program in the country.
The maquila and export manufacturing industry is present in 24 states of the Mexican Republic and the main sectors companies with IMMEX programs serve the automotive, aerospace, home appliances, electric, electronics, agro-industry, food, textile and confection, jewelry, as well as of medical equipment sectors.
Nowadays it is estimated that the manufacturing industry contributes with 57 % of the total exportations in the country and almost 70 % of the country’s manufacturing exports.
It is estimated that the maquila and manufacturing industry closed 2017 with 2 million 908 thousand direct jobs, and about 7 millions 500 thousand indirect jobs nationally; this represents 90 % of all the workers from the manufacturing sector insured before the IMSS and 17 % of the total of the workers registered also before the IMSS.
From here the importance this sector that generates formal and registered employment has. In 2017 I basically closed with a generation of more than 130 thousand new jobs.
Tamaulipas: industry representative State
For those in front of the Maquila and Export Manufacturing Industry Association (Index) in this State; the industry has a very particular connotation.
In Reynosa, Tamaulipas, the maquila and manufacturing Industry is an important trigger for the city’s growth and in fact of the entire area. It is an important axis for the city’s economy and the state and Mexico’s growth. The growth of the maquila and export manufacturing industry in Reynosa in the last five years has being sustained in an 8 % annual average.
The high generation of jobs in this Industry has a collateral impact in the supply on many areas related with the economic activity, as well as in the educational formation and professional development of many people through the formation area “not only in the technical or professional part,” but in what the industry contributes to the people when training them with discipline, with harmonious environments inside the companies, also within the productivity environment.
Reynosa highlights by its advantages which makes them attractive for the arrival of companies; its location and infrastructure in industrial parks and roads connection with other cities, services; as well as the public and private education options. Additionally, stability and 20 to 50 seniority of the companies in the main sectors, they are an important confidence indicator when investors assess this area, and definitively the support of the three authorities of the 3 levels of Government.
Martha Ramos, director of Index Reynosa, mentioned that there are 13 sectors of the industry in companies installed in this city; however, the main ones are the automotive, electric-electronic, metal mechanical and medical. This way, Index Reynosa stands out for being one of the Associations in the country that has a diversity of sectors, which represents strength and generates balance when there are economic crises.
Number of IMMEX companies in Reynosa in:
2013 - 153
2014 - 148
2015 - 147
2016 - 150
2017 - 149
Number of direct jobs generated by IMMEX companies in Reynosa in:
2013 - 91,321
2014 - 94,489
2015 - 97,118
2016 - 109,567
2017 - 120,010
Castro, president of Index Reynosa, said that the Industry is facing challenges;
its impact must continue to be the same that they have had for the last 30
years. The industry is what has aroused
Tamaulipas; there is petroleum, agriculture and other means such as remittances;
but at the end of the day it is an industry that have many good
characteristics, and it is an industry that provides jobs to people – directly
and indirectly – generates a series of opportunity sources and of business to
different establishments from hotels, hospitals, entertainment centers,
It is a
geographic industry and logistically is located in an excellent place as
Tamaulipas. Markets are intelligent and
always will be positioned where they can see better conditions and while
Tamaulipas continues offering optimum conditions, they will continue to
“Talking about politics; the ones from Mexico as well as from the United States can change and will continue to change and evolve, but I can hardly see they could turn 180° with something that is economically viable and that it has been viable for 40 to 50 years. Tamaulipas has a great opportunity, and we have to use it. This shake given to Mexico as well as to the United States, was important, since it made many companies and investors to react and see they had to do some important adjustments to their productivity, in its competitiveness, but it is an industry that reacts rapidly,” highlighted the president of Index in Reynosa.
In Matamoros, the Industry is the economic axis of the city, and usually the economic axis among the other borders. Specially in Matamoros there are 127 thousand jobs, from which the maquila industry generates 80 thousand direct ones; “for every 3 direct ones an indirect one is generated, therefore in fact there are 104 thousand jobs the ones depending on the maquila industry from the 127 thousand registered before the IMSS,” said Rolando Gonzalez Barron, president of Index Matamoros are located about 122 maquila companies, mainly from the automotive, electronics and metallurgy sectors; and from which 100 are affiliated to Index.
the Industry in Matamoros:
For the past years – taking into account the 2008 crisis – more than 10 thousand jobs were lost. “From 2008 forward, it took us 8 years (until 2016) to get the same amount of jobs we had when the crisis started. Fortunately, 2017 has been the year when the city grew the most since 2008, since a growth of about 6 thousand jobs in the maquila industry is already estimated,” said the president of Index Matamoros. Adding that the investments continue arriving to Matamoros; as in 2017 about 6 new companies were settled; however, the important thing is that most of these already established companies had a growth in their facilities.
“Index has a fundamental role in the promotion of the development and competitiveness in Matamoros, since in the past years it has become a ruling axis of the city’s economy and this sets great responsibility in the Association,” said Rolando Gonzalez Barron. Due to this, Index continues visualizing more options in the city, since it cannot be that the city depends only on one sector such as the maquila industry. Currently, the Association is generating more economic development, in which manner? By developing new businessmen, that is why they are making the Innovation and Talent Development Center.
In the opinion of:
Jorge Cuellar Montoya, federal delegate of the Ministry of Economy in Tamaulipas, highlighted why Tamaulipas is the state with more presence of the maquila and export manufacturing industry presence. Mentioning that Tamaulipas offers great possibilities for the development of the industry, companies that come to the State for different reasons; among which are its strategic location and its infrastructure. Tamaulipas is a State that has 17 international crossings with the United States; two of them of railroad “one located in the Brownsville – Matamoros crossing and the one located at the Dos Laredos,” the crossings are located throughout the Tamaulipas border of the south of the United States. Among its advantages It also has three ports: Altamira, Tampico and the one from Matamoros – which is in development – and of which can be mentioned a current investment of 220 million pesos and in which are observed future investments such as the Cinturon Plegado Perdido with a total investment of 81 billion dollars. In addition he mentioned that the roads network is of first category and mainly that those are roads without fee for users (except for some small sections and that allow an excellent interconnection with the different cities in the State.
Its infrastructure is like in few places favorable for all type of industry; the maquila industry, the energy industry, the oil industry and even alternative energies, such as wind power, where Tamaulipas has large fields, where this industry is developing.
What the manufacturing Industry represents for Tamaulipas
In that sense, Cuellar said that the manufacturing industry is one of the most important industries for the State and represents an opportunity for the people living in this Region, it represents an opportunity of having more and better jobs, and as more companies arrive to the area and can offer better conditions is how Tamaulipas population will be benefited.
Projects to be developed that will have an impact the State’s economy
There are different strategic projects mainly in the energy sector, Tamaulipas “like no other state,” has the conditions for the development of the energetic industry, green energies as well as renewable energies, and due to the State’s conditions, for its location and conditions, is a State that has great potential to develop this kind of energies.
Nuevo Laredo, Tamaulipas
Nevertheless Nuevo Laredo is considered the capital of the International Commerce in Latin America; the manufacturing industry has a very important role in this border city; virtually 37 % of the formal employment before the IMSS belongs to the maquila and manufacturing industry.
In addition, regarding the Gross Domestic Product, the industry provides 36 % in Nuevo Laredo. The industry is one of the main attractions for the multiplier effect that the economy has at the moment of being installed. The industry provides an important added value to Nuevo Laredo, Tam. from the point of view of the employment, and mainly because the industry is the economy activity the one having a wider multiplier factor – practically of a 200 % - within the supply and of the industry services requires too many supports and is the main factor of our environment to generate services, suppliers’ chains; despite the supply of the raw materials and indirect materials.
From January to September 2017, the NLD International Airport, registered 60,355 passengers, a 2 % more than the same period of 2016, this represents a cash flow of 11 Million pesos more in sales. In freight it increased 33 % from January to September 2017 with 886 thousand 581 kilos, in comparison with the same period in 2016.
In employment, Nuevo Laredo records the creation of 19 new formal Jobs before the IMSS each day. More than 4,500 jobs generated so far in the administration. There are 7 new related industrial investments. Expansions of about 60 million dollars generated 2,694 jobs.
“Reynosa is a very competitive city, where it is required to do alliances, strategic and manly to be competitive; in that tenor, transporters must seek how to fit with these new visions,” said Uriel Ordonez, president of the Reynosa Transporters’ Association.
Transportation is one of the parts included in the value chain that makes the country productive. It is worth noticing that through this city are exported and imported all kind of products, there is no limit, we have the assignment of continuing taking the country forward and Reynosa is a municipality with that vision, we have important industrial parks where products are mostly of exportation. We bring and take many products also from and towards the interior.
Important challenges are coming with hydrocarbons imports; this is a sector in which transportation will have to enter strong, since having an opening in fuels puts the carriers at an interesting level of work, and hence the intention to join the projection of the governments to be able to support and not miss their goods.
Alfonso Padilla Hernández, president of the National Chamber of the Restaurants and Flavored Food Industry in Reynosa, said: “With more than 200 members, CANIRAC in Reynosa has the firm purpose of increasing its projection.”
Aiming to project investments, CANIRAC is working together with institutions that offer gastronomy careers, this is an important point to work with them in the creation and promotion of it in order to make business grow and bring investment.
In the first months of 2018, the municipality of Reynosa has achieved to record the best occupancy of the last 10 years, thanks to the presence of the business tourism attracted by energy and industrial issues resulting from the Energy Reform.
According to the figures from the same hotel companies and collected by the Ministry of Tourism in Tamaulipas, while in the first 7 weeks of 2017 the average occupancy was between 40 % and a 42 % approximately in the same lapse of 2018 the average has reached a 62 %.
The increase in hotel occupancy is registered in the framework of the start of activities of companies dedicated to the construction and operation of wind power parks and soon of hydrocarbons exploration and extraction in the northern area of Tamaulipas.
Together with the energetic activity in the area, factors such as the maquila industry growth, which has grown with more than 20 thousand jobs only in Reynosa in the recent year; it also has influenced the growth trend of the hotel occupancy in this border.
Tamaulipas exceeded the housing credits goal of 2017 in 33 %, with the granting of 26 thousand credits from the INFONAVIT and an economic revenue of more than $ 8 thousand 700 million pesos, mentioned David Penchyna Grub, general director of the Institute.
He additionally mentioned the construction of the INFONAVIT Service Center (CESI, by its Spanish initials) Altamira, which will have an investment of about 60 million pesos, it will include a two stories building that will be housing the new offices of the Institute.