The technological ecosystem and the Industry encourage the State’s growth
Jalisco is among the most important economies in Mexico and is one with the highest potential for investment attraction. The growth the State is experiencing is promoted by sectors such as the technological, manufacturing and of food; but also for its entrepreneurial ecosystem.
“A very important point to be considered is that many investors see the creation of ecosystems; the ecosystem that has been created for the high technology industry, or the one from Lagos de Moreno for the automotive sector, has caused more companies to be interested in observing the possibility of investing in Jalisco or expand their investments,” said Sergio Rios, regional coordinator of ProMexico Centro Occidente.
He explained that the ecosystems were integrated by universities, companies, research centers and the Government.
“The great advantage Jalisco has for Foreign Direct Investment (FDI) is its government and business coordination, together with the ecosystems,” he said.
According to the Ministry of Economy, during the first trimester of the year, FDI in Jalisco reached 378.4 million dollars, positioning as the eleventh state that contributed the most to the Mexico’s FDI.
Meanwhile, based in the Regional Indicators of Economic Activity (IRAE, by its Spanish initials) from Banamex, Jalisco is about the 10 States that will grow the most in 2018.
Anticipated that the States in which the highest growth of the Gross Domestic Product (GDP) is expected are Baja California Sur, with 6.2%; Quintana Roo, with 4.8%; San Luis Potosi, with 4.6%; Aguascalientes, with 4.5%; Queretaro, with 4.3%; Guanajuato and Puebla, with 4%; and Jalisco, Estado de Mexico and Nuevo Leon, with 3.4 percent.
Nationally it is estimated a GDP growth of 2.3 % for 2018, slightly higher than 2.0 % of 2017.
He referred that in 2017, Jalisco reached a growth above the national average: its GDP grew 3.0 percent.
In general – he detailed – the state economic activity showed advances in all its sectors, with the primary growing 5.1 %, the tertiary 3.2 % and the industrial 2.1 %.
“Inside this last one, the construction sector as well as manufactures reported growths of 3.4 % and 1.8 %, respectively. The economy dynamism impacted favorably the generation of formal jobs, which grew 6.1 % in the year compared with 4.4 % of the national,” he explained.
For Luis de Regil director of Corporativo Senoro, Jalisco has highlighted for being an entrepreneurship culture, with an excellent organization between private initiative and public administration.
“When other countries do a scouting there is a right organization of businessmen in Jalisco and a good synergy between Government and private initiative,” he held.
For Sergio Rios, regional coordinator of ProMexico Centro Occidente, the High Technology sector – development of hardware, software, augmented reality, animation, videogames, applications, virtual reality and internet of things - continue encouraging Jalisco’s growth and underlined that this has passed from manufacture to what is called “workmind.”
“We have seen how important companies have come to establish their research and development centers in Jalisco, what provides a different turn to traditional manufacturing investments,” he said.
Another industry that is having a particular interest in Lagos de Moreno, is the automotive which has found here a strategic site to reach companies settled in Guanajuato, San Luis Potosi, Aguascalientes, among other places, he said.
He added that also the food and aerospace sectors have started to be interested, mainly the last one related with technology: “The aerospace industry will eventually, in the technological part, will end landing in Jalisco.”
He explained that the main country interested on investing in Jalisco continues to be the United States, followed by Germany and Japan.
“Also, interesting investments have arrived from other countries such as from Denmark and France, but the main ones are from the United States, Japan and Germany.”
According to SE, during the first trimester of 2018, the main countries that added to the FDI figure from Jalisco was the United States, with 254.1 million dollars; followed by Spain, with 92.9 million dollars; Canada, with 37.1 million; the Netherlands, 19.4 million; United Kingdom, 8.3 million; Germany, 4.4 million; and China, with 3.4 million dollars.
Regarding this, Luis de Regil, director of Corporativo Senoro, said that the markets from the Pacific alliance and Euroasia have found in Jalisco an attractive place to invest.
“There has been an interesting promotion in Jalisco regarding the subject of technology, Canada and Costa Rica have approached; in Euroasia, countries such as Indonesia have paid attention to Guadalajara in furniture and textile matters; Bangladesh, in textile; Belgium, in food and biotechnology,” he mentioned.
Sergio Rios, regional coordinator of ProMexico Centro Occidente, revealed that one of the investments about to detonate in Jalisco is of an important company related with the retail industry.
“This is their first incursion in Mexico and we are considering that fulfilling it in Jalisco will trigger a very important sector that did not exist in the country.”
Likewise, an investment of High Technology Company is expected which is seeking to establish a training center for people to work with them from their homes and provide certain kind of attention and advisory.
He said that other international companies are looking for making an investment through strategic alliances to attack the market of the Pacific Alliance.
“They are realizing that Mexico is not only an important hub for North America, it also becomes a strategic partner for the entire Central America and South America,” he underlined.
Rios announced that Jalisco has 19 industrial sectors of export and with more than 970 products exported to 180 countries, this without taking into account the great export of services related with high technology, of “intangible” done by the State companies.
Rios explained that Jalisco seeks and uses international opportunities offered by new markets, such as the one of Colombia, Chile and Peru, or see which possibilities is offered by Guatemala, Costa Rica and Panama.
This – mentioned – together with an Europe that has economically recovering and that countries such as Germany, United Kingdom and Netherlands have showed great interest for knowing more about Mexican supply, with what has being achieved business opportunities multiply.
He added that Eurasia also shows market prominent opportunities and that countries such as Turkey, India or Russia have been interested in knowing more about the Mexican exportable offer, together with countries such as China, Singapore, Indonesia and Malesia, among others.
“With this wide international range of opportunities, SMEs businessmen from Jalisco are seeking to enter specialized markets, with added value products that were not seen before in Mexican exports such as Halal products, organics, dehydrated products, lyophilized, ready to prepare, as snacks and superfoods to mention a few, taking into consideration a new trend to nutritious, dietetic or light,” he underlined.
Regarding this, Luis Regil, director of Corporativo Senoro, said that healthy Jalisco products, of Premium quality and all those related with health care and human being wellness have shown positive export numbers.
ECONOMIC GROWTH OUTLOOK
Both specialists estimated an economic growth equal or better that the one registered by the end of 2017 for Jalisco this year.
“Some companies that are expecting the definition of the NAFTA eventually could decide to open operations in Jalisco. There is a very interesting dynamic, mainly of expanding operations in Jalisco, and some that are about to establish,” said Rios.
Finally, Luis de Regin noted that economic growth could reach between 3.5 and 3-8 percent.