Expo Automotriz, which will be held from May 7-8, 2024 at Querétaro Centro de Congresos, will bring together the main players in the automotive industry, including automakers, auto parts suppliers, technology and logistics companies, and more.

Polígono Empresarial San Miguel de Allende, as a company committed to the industrial development of the region, will take advantage of this platform to present its comprehensive solutions for the automotive industry. The industrial park offers a strategic location in the heart of the Bajío, first-class connectivity, modern and flexible infrastructure, and a wide range of services for companies in the automotive sector.

Polígono Empresarial San Miguel de Allende invites all attendees to Expo Automotriz to visit its stand to learn more about its comprehensive solutions for the automotive industry. The park’s team will be happy to assist you and answer any questions you may have.

Importance of Expo Automotriz

Expo Automotriz is a highly relevant event for the automotive industry in Mexico. In its latest edition, held in 2023, the event had the participation of more than 500 exhibitors and received more than 100,000 visitors.

This year, Expo Automotriz is expected to be even bigger and more successful. The event will feature a wide range of exhibitors, from automakers to technology and logistics companies. In addition, there will be a program of conferences and workshops with experts from the automotive industry.

Expo Automotriz is a unique opportunity to:

• Learn about the latest trends in the automotive industry.
• Establish business relationships with companies in the sector.
• Find new suppliers and customers.
• Promote products and services.
• Train on the latest technologies.

Polígono Empresarial San Miguel de Allende invites all players in the automotive industry to participate in Expo Automotriz 2024. This event is an invaluable opportunity to grow your business and strengthen your position in the market.

About Polígono Empresarial San Miguel de Allende

Polígono Empresarial San Miguel de Allende is a leading industrial park in the Bajío region. The park offers a strategic location, first-class connectivity, modern and flexible infrastructure, and a wide range of services for companies in various sectors, including the automotive industry.

For more information about Polígono Empresarial San Miguel de Allende, please visit:

Facebook: https://www.facebook.com/poligono.pesma/

LinkedIn: https://www.linkedin.com/company/poligono-empresarial-san-miguel/

Recently, China has intensified its participation in nearshoring in Mexico, leading to over 100 Chinese companies establishing themselves in the country. According to the Mexico-Hong Kong Chamber of Commerce and the Mexico-China Chamber of Commerce and Technology, China has leased over 5 million square meters of industrial warehouses in the country, thus consolidating its presence in the Mexican market. This trend of relocation arises as a response to the disruption of the Chinese market with the American market, and is fueled by the potential benefits of the Mexico, United States, and Canada Agreement (USMCA), which provides access to the world’s largest market.

The relocation of Chinese companies to Mexico is already a palpable reality. Notable examples include Grupo Hengli, State Power Investment Corp, Lizhong, Citic Dicastal, and Alibaba, among others. These companies have found in Mexico a conducive environment to expand their operations and benefit from existing infrastructure, skilled labor, and offered economic incentives.

Among the most favored cities are Guanajuato, Queretaro, Monterrey, Saltillo, Mexico City, Tijuana, and Ciudad Juarez. These locations have become attractive destinations for foreign investment, generating a significant boost to their economic development.

The Poligono Industrial San Miguel, located in the heart of Bajio, serves as a pillar for all those companies looking to relocate in Mexico. This industrial park is situated in one of the country’s main industrial corridors, with direct access to important communication routes such as highways 45 and 57, which connect the center to the north of Mexico, as well as the border with the United States, a key player for Nearshoring.

Benefit from extensive infrastructure and specialized services that will provide the necessary support to boost your growth and business development. Additionally, you will be part of a dynamic business community where you can establish valuable alliances and take advantage of the opportunities offered by the Mexican market.

Be part of PESMA, We’ve got the energy!

However, in comparison, industrial properties are known to reap higher financial returns than commercial or residential properties. With that said, if industrial real estate investment is to be made in an economy as stable as Mexico, particularly San Miguel de Allende, the risk is greatly reduced.

However, in comparison, industrial properties are known to reap higher financial returns than commercial or residential properties. With that said, if industrial real estate investment is to be made in an economy as stable as Mexico, particularly San Miguel de Allende, the risk is greatly reduced.

For those who are making industrial investments for the first time or are skeptical about making this move, below are some advantages of investing in industrial real estate in San Miguel de Allende:

Great Income Potential.

The earnings potential is huge when investing in industrial property. Statistically they tend to produce a remarkable return. Of course, it also depends on the area and location.

Build professional relationships

Generally speaking, it is the owners of large companies who invest in industrial real estate to manage their. Industrial property owners are generally not individuals, but LLCs that use the property for commercial purposes.

Consequently, the owner and occupier share a B2B client affiliation. And this helps keep communications formal and gentlemanly.

Greater objectivity with pricing

Evaluating prices for industrial properties is much easier than for commercial properties. Plus, you can always ask the current owner to provide the property’s income statement and get feedback on the right price to set for you.

On the other hand, there are a lot of emotions involved with pricing industrial properties.

Whether or not you are looking to make an industrial investment, Poligono Empresarial San Miguel de Allende covers all of this and much more.

Please contact us to discuss your requirements and how we can best serve you.

A Lifetime Investment in Industrial Parks

As of 2018, the dynamism of industrial parks in Latin America, particularly in Mexico has strengthened. An export-oriented economic model that was born in the eighties and gave openness to investments to many companies. In addition, the strategy has been that 90% of the parks are private and that their level of technology development has achieved a true autonomy of growth.

Since the emergence of the parks in Mexico has been improving to become an elite sector with external resources and a great technology. A clear example of growth can be seen in the Bajío cities, which contain some of the most important industrial zones in the country. It is an industrial zone that reveals great advantages due to its climatic and geographic conditions. In addition, cities with a high quality of life, such as San Miguel de Allende, make it the ideal place for a world-class infrastructure.

Undoubtedly, industrial lands are the right place to relocate from urban areas to industrial areas of the productive sector. A great investment for the development of any company. The exceptional conditions of the parks stand out as a high level and safe investment that has the necessary means for large companies and even foreign investments.

More advantages to invest in Industrial Parks

The critical situation with the pandemic has slowed down many investments, however, the future for companies must be taken into account. Investing today represents a vision for the future. More and more businesses are looking to establish themselves in industrial parks that have the resources, technology and the right geographic location for operations. Considering that Mexico has always been a country that manages to overcome economic crises, even today we can see the great opportunity, since it has 25 parks and the highest number of international recognitions and certifications.

Investing in an industrial park is the expansion of a company to a fully specialized space to house the industry. These areas have the necessary resources and resources for industrialization. Likewise, they are modern and adequate constructions under the regulations to carry out industrial activities. Thus, it is an investment in an infrastructure that will be the future of the company after the pandemic crisis.

Like Toyota, other automotive companies and companies from other sectors have made the decision to invest in their future. There are at least 500 in the automotive sector, including 100 Asian companies.

The rich historical culture, natural heritage and promising business, commercial and development opportunities of the entire Bajio area, and more so in San Miguel de Allende, combine to provide a friendly and pleasant environment and a high standard of living.

Through thousands of years of cultural and historical revolution, the state has continued to provide an excellent quality of life.

Business climate

Important comparative advantages reveal that, due to an optimal geographic location and excellent climatic conditions, San Miguel de Allende is a top-ranking competitor in the field of tourism.

During the last few years, the real estate sector, the main tertiary activities in the state of Guanajuato, contributed 54.4% to the state’s gross domestic product.

Among the main activities are: manufacturing 28.08%, commerce 15.80%, real estate and rental services of movable and intangible goods 11.81%, food industry 7.3%, all of which combine to represent 63.5% of the state’s gross domestic product.

The strategic sectors, in part, are: industrial, automotive parts, chemicals, apparel, leather footwear, textiles and fashion. The future forecast is expected to include research, tourism, medical equipment, and pharmaceutical and cosmetic services.

In terms of productive infrastructure, the state has 15 industrial and/or technological parks. Polígono Empresarial San Miguel is a 110-hectare industrial park that only in 2017 sold its first phase completely, it houses companies from countries such as Germany, Spain, the United States, Switzerland and Austria, mainly focused on serving the automotive and agri-food markets.

A new distribution of this indicator observes that the state of Guanajuato ranks first in the creation of new companies, 8th in construction permit administration, 7th in property registration and 5th in contract compliance.

The municipality of San Miguel de Allende

The municipality of San Miguel de Allende, one of the 46 municipalities of which is located between the geological frontiers of volcanic Mesoamerica and the semi-desert of North America. The average altitude is 1,910m above sea level and the city is located 275 km from Mexico City DF, 97 km from the city of Guanajuato and 157 km from Leon, Guanajuato.

Summary

Gross Domestic Product (GDP) is 461.2 million, GDP represents 1.5% of the state percentage breakdown: agriculture – 10.6%, mining 0.1%, services 53.9%, commerce 27.7%, construction 0.5%, manufacturing 6.5%, water, electricity and supplies 0.8%. GDP per capita = $ 3,255.

Excellent quality standards, high evaluations and international certifications combine to classify San Miguel as a first class destination. San Miguel’s exceptional conditions and privileges combine to offer domestic and foreign nationals a secure investment and a comfortable, high standard of living equal to or better than any other place in North America.

Reasons to have a presence in industrial parks

In 2018, more than 50% of industrial parks were located in northern regions of Mexico and the rest in other entities of the country. The Bajio area has been strengthened with the construction of industrial lots, large companies can meet their needs and those of their customers, because they have the best infrastructure, quality services, strategic location, attraction of investors and environmental protection.

1. Human Capital: national and transnational companies in the industrial sector have qualified labor, with professionals in different areas, and organizations strive to provide their staff with attractive benefits to retain talent and ensure that they have adequate working conditions.

2. Infrastructure: large companies consider relocating their plants to industrial land, in order to have an opportunity for industrial development, because they realize that they do not have the capacity to continue expanding in the area where they started their operations. The SMEs did not visualize in the future that they would have an accelerated growth, most of the factories started in smaller facilities and in sectors not suitable for industrial progress, causing consequences in the logistics area, as well as inconveniences with neighbors of the urbanizations.

Installing a plant in an industrial park is to have a world-class infrastructure, it has as a benefit the expansion of the company’s facilities with great equipment and optimization of resources.

3. Services: industrial parks guarantee investors and large companies all the amenities of electricity, roads, water, natural gas, transportation, parking for their employees, telecommunications, security system and 24/7 surveillance.

4. Strategic location: in order to maintain order in the city without affecting urban planning, the industrial lands in Bajío are located in areas destined for the industrial sector and these have easy access to the main airports and ports, have highways with excellent roads, and are also 9 hours away from the border with the United States, which attracts foreign investment.

5. Environmental protection: many companies, in order to align their harmony with the environment, make constant efforts to reduce the consumption of water, electricity, and pollutants. In this way, they contribute to the conservation of natural resources.

During the first quarter of 2020, in China, the country where the virus emerged, real estate transactions fell by 90%. This was reported by the China Merchants Securities Co. In March, stock markets around the world collapsed, in spite of interest rate reductions. In Mexico, on the other hand, the implementation of “healthy distance” measures began in the face of community outbreaks of coronavirus cases.

Real estate contractions were experienced throughout 2019. However, at the beginning of the current year, trends pointed to a 4% growth in the market. This, originated as a consequence of the reduction in interest rates promoted by the Bank of Mexico. It also had its origin in the impulse of institutional housing programs, such as Infonavit’s Unamos créditos program.

Despite this, according to the Mexican Association of Real Estate Professionals, during the contingency, real estate activity will be frozen and no real estate acquisitions will be made in order to avoid investment risks. It is considered that, until it can be announced that the pandemic has been controlled, confidence in the sector will gradually recover.

In terms of expectations, it is expected that the recovery will begin to develop during the third quarter of the year. Furthermore, it is considered that it may stabilize towards the last quarter allowing for a year of growth in 2021. It is believed that social interest real estate could remain stable, but residential housing will be the most affected.

Offices

Since the last quarter of 2019, the office real estate segment already presented a slowdown. This, mainly in the Mexico City market. There, a significant amount of office construction had slowed down as a result of the need for permits to carry out the task in the context of isolation.

Due to the health contingency, many offices have been suddenly closed. This has prompted companies to provide their workers with the necessary conditions to continue their tasks from their homes, by means of teleworking. This, as a way to continue operating in compliance with the sanitary measures implemented. This has a direct impact on the office real estate market, since it responds to the level of economic activity and employment. In this sense, 2020 is considered to be a slow year, where prices are adjusted downwards.

Industrial real estate

Demand for logistics real estate will also be affected. Over the last few years, it has been exceeding growth expectations, reaching between 250 and 300 MSF in recent years. This is driven by the modernization of the supply chain and e-commerce, which continues to grow. It is estimated that a return to a 7% break-even rate will require more than 350 MSF of vacant deliveries.

The healthcare side of industrial real estate could see more activity. This would help, according to recent studies, to offset the blows in the travel, events, hospitality and automotive industries.

Second half of 2020

During the second half of 2020, housing prices – both new and used – in Mexico City experienced a 1.9% increase. Since the beginning of the record in 2009, this is the lowest increase seen, according to data from the Federal Mortgage Society.

The covid-19 pandemic represented a downward trend in housing prices. Already since the third quarter of 2019, price increases started to be lower, going from almost 10% to 7% and 5.5%, finding their lowest increase from April to June 2020 with 1.9%.

The real estate sector, certainly, is not alien to the effects of the crisis generated by the pandemic, however, the economic recovery that is predicted for the post-pandemic, it is estimated, may imply a rise in real estate prices. At the same time, specialists expect a rebound effect of national economies worldwide, which is reflected in a large-scale recovery after the control of the sanitary emergency. Therefore, those who wish to acquire real estate are advised to take advantage of the current low prices to do so.

A Deloitte report on post-pandemic predictions indicates that:

“Remote working will become a permanent fixture in our lives so retail and shopping center owners will need to adjust their operations and business models, focusing on post-COVID-19 scenarios, in order to maintain the value of their assets and ensure their cash flow.”

Zona Bajío has been focusing its energy on manufacturing growth for several decades. A sign of this expansion is that it currently has more than 5 million square meters destined for industrial parks1, and between 2012 and 2016 alone, around 500 automotive companies were installed, including almost 100 Asian companies2. The municipalities that have benefited the most from this manufacturing focus are Celaya, Irapuato, León, Salamanca, San José Iturbide, Silao and San Miguel de Allende.

The Bajío is one of the most attractive regions of the country to invest in, since almost 50% of Mexican manufacturing is produced in this area3 , which is an important driver of foreign investment, together with a young working-age population; specifically in San Miguel de Allende, whose population has an average age of 22 years old.

This is one of the main reasons why San Miguel de Allende stands out as one of the most recognized cities in the world; not only for its tourist potential, but also for its immense capacity in the manufacturing industry and a great offer of entertainment, gastronomy, leisure areas and job opportunities for Mexicans and foreigners.

World-class infrastructure

Polígono Empresarial San Miguel is a 110-hectare industrial park that in 2017 was sold in its entirety in its first stage and is home to companies from countries such as Germany, Spain, the United States, Switzerland and Austria, mainly focused on serving the automotive and agri-food markets.

Some of the companies already occupying these spaces are: Stant, Rafi, Estamp, Hischmann Automotive, Penn Engineering, Thyssenkrupp, Dräxlmaier, Rieke, as well as developers Vynmsa and Vesta.

One of its great advantages is its strategic location, just a few kilometers from Querétaro, San José Iturbide and the Guanajuato Industrial Corridor, in the heart of the country, close to the main airports and highways on the way to the U.S. border.

The second phase of Poligono Empresarial San Miguel has 108 hectares of land, with regular spaces designed to reduce topography and investment arrangements, in addition to having wider roads that allow better circulation within the park.

Distributed in six blocks ranging from 71,223.36 to 273,310.07 square meters, each one has lots from 10 thousand square meters with independent entrances; which due to their strategic design allow direct access to each owner for maneuvering and transportation.

Polígono Empresarial San Miguel is presented as an alternative to the energy capacity problems that have arisen in saturated areas such as the Bajío, where there are regions with little or no energy availability, where the scarcity of this resource represents an obstacle for the growth of companies and the optimal operation of their plants.

In addition to having the best systems for the supply of resources, as well as the latest technology tools, it offers a high-pressure fire protection system approved by FM and UL listed.

In addition, its power potential is ideal for industries such as plastic injection, technology and robotics, which depend on excellent capacity and performance for their operation. There is a 30 MVA electrical substation and 30 MVA available for expansion to establish the appropriate voltage levels for the transmission and distribution of electrical energy in the park. There is also a clean energy plant under construction.

In terms of water supply, the development has two wells with a capacity of 700,000 m3 per year, which allows companies of all types to operate smoothly; in addition, there is a water treatment plant with a capacity of 11 liters per second.

There is also a natural gas pipeline 6.4 km from the park. Natural gas is the lowest-priced fuel and allows for significant savings compared to other fuels; in addition, it results in lower equipment maintenance costs, which translates into significant savings and improved efficiency.

Sources:

¹ Mexican Association of Private Industrial Parks.
“Panorama del mercado inmobiliario industrial 2019”.
https://ampip.org.mx
https://ampip.org.mx/wp-content/docs/Mercado%20Inmobiliario%20Industrial%202Q2019.pdf
Retrieved Friday, November 8, 2019.

² San Miguel II Business Park.
https://poligonosanmiguel.com/
https://poligonosanmiguel.com/es/#infrastructure
Accessed on Friday, November 8, 2019.

³ PEMSA information, slide 4.

In this sense, accessibility stands out, since its geographic location in the Mexican territory implies a direct connection between North America and Central America, and due to its high connectivity, it also presents the opportunity to transport inputs directly as well as to export at low cost by different means: road, air, sea or railroad.

Currently, the Bajío is recognized as one of the most attractive regions for companies seeking to grow and establish themselves in one of the industrial corridors where all the necessary means for their operation converge; its manufacturing potential is continuously growing, attracting the attention of major brands and attracting foreign investment.

However, this expansion and the wide variety of options available in terms of industrial parks in the region, make the decision of where to take your company more difficult. You need to analyze which one is the most convenient for your company, which adapts to your needs, has the best location and offers you the best benefits to establish your company. In addition, it must be up to date with the new regulations, updated in technologies, and cover the best practices in terms of infrastructure quality, safety and sustainability.

San Miguel de Allende: the new industrial paradise

Mexico’s strategic location, as well as the important network of trade agreements it has, not only in North America, but also with the European Union and Mercosur, facilitate exports in different sectors, which in particular has triggered the growth of the automotive industry in our country, as well as the import and export of parts. Some of Mexico’s trade agreements and treaties include the following: Agreement for the Strengthening of the Economic Association, Mexico-Peru Trade Integration Agreement, Mexico-Bolivia Economic Complementation Agreement No. 66, ACE – 55, NAFTA, FTA-EU FTA, FTA, among others1.

Surrounded by the states of San Luis Potosí, Querétaro and Jalisco -which together have become the headquarters of the main automotive industry companies-, Zona Bajío has the largest presence of these companies, among which Mazda, Toyota, General Motors, Ford, Volkswagen and Honda stand out.

But today Zona Bajío also stands out as the best bet for the manufacturing industry because the city of San Miguel Allende has emerged as the new industrial destination in the Bajío region, particularly due to the competitive advantages of the new Polígono Empresarial San Miguel Industrial Park.

Its privileged location, a few kilometers from Querétaro, San José Iturbide and the Zona Bajío Industrial Corridor, make it a city with high potential for business, but also as a privileged destination for its quality of life and the excellent exposure it represents for any company. (In 2018, it was awarded as the “Best City in the World” by Travel + Leisure).

It is also located in the heart of the country, just nine hours driving from the border with the United States, where strategic points such as San Diego, El Paso, Laredo, Mc Allen and Brownsville stand out. Its location is also perfect for being on the way to important ports such as Manzanillo, Lázaro Cárdenas, Veracruz and Altamira. In addition to being surrounded by the Bajio International Airport, the Mexico City International Airport, as well as the Queretaro Intercontinental Airport.

It is worth mentioning that in order to favor this and other industrial parks, the authorities are investing in the remodeling of Federal Highway 57, which will serve 312 kilometers of roadway, and which includes the states of San Luis Potosí, Querétaro and the Bajío Zone.

Its location is ideal for commerce, connecting with major highways and only 248 kilometers from Mexico City and a few kilometers from Querétaro and San Luis Potosí, which facilitates the transfer of business.

Quality of life in the heart of Mexico

Polígono Empresarial San Miguel has detonated the industrial activity of the region, while developing the necessary infrastructure to house new companies, generating sustainability strategies for the growth of the population and preserving the culture and history of a city that has it all.

San Miguel de Allende is an excellent place to live, being one of the most culturally active places in the country, with an important number of galleries, educational centers, events and places of interest. In addition, it has a high quality of life, where members and executives can find properties for rent and sale of great level, with an extraordinary location and a very modern Mexican style.

Discover all the benefits of Poligono Empresarial San Miguel and its investment opportunities by clicking on the following button.

Sources:

¹ https://www.gob.mx/se/acciones-y-programas/comercio-exterior-paises-con-tratados-y-acuerdos-firmados-con-mexico

There are currently more than 330 companies in this sector in the country, of which 80 percent are dedicated to manufacturing and 20 percent offer design and engineering services and Maintenance, Repair and Operations (MRO), as confirmed by the official website of the Government of the entity1.

According to the document Pro Aéreo 2.0, issued by the Ministry of Economy (SE), in 2017, Mexico was considered the third place of attraction for aeronautical projects and number 1 in Latin American countries. North America (including Mexico) continues to be the region with the highest participation with 51.1 % of total.

Pro Aéreo 2.0 forecasts by 2036 an increase in the air fleet that will bring more manufacturing operations and maintenance services worldwide, positioning Mexico as a power for investment and development of large aerospace industries. It is expected that for the next 20 years the fleet will amount to 42, 530 units -double the fleet that was in 2017-, which represents 52% of the requirement of new units, 30% by replacement and 18% as part of the fleet that remains.

In Mexico, it is from 2005 that the aerospace industry begins to stand out, mainly due to the arrival of original equipment manufacturing (OEM) companies. Today, there are also industrial parks such as Polígono Empresarial San Miguel, which offer first-class infrastructure and have become the ideal manufacturing headquarters for this ever-growing industry.

San Miguel de Allende: tourist and industrial vocation

Guanajuato is one of the states with the greatest logistical and industrial value, as it is connected to the country’s main highways, railroads, seaports and international airport. It is located in the central area of the country, within what is called the “golden triangle” Mexico City-Guadalajara-Monterrey.

Currently, the aerospace industry has invested 2.6 million dollars in the state of Guanajuato, according to the state’s official website, which represents 2% of the state’s Gross Domestic Product (GDP).

Considered one of the best cities in the world, San Miguel de Allende is also home to one of the most promising industrial parks in the country: Polígono Empresarial San Miguel, with a space of 200 hectares in its first stage, sold in its entirety and in its second stage 126 hectares more, with availability.

The Industrial Park already houses companies from diverse sectors such as Hirschman Automotive, ThyssenKrupp Components Technology, Stant, BHTC Mexico, RAFI Syscom Mexico and Langer Molds and Tools, and has the necessary characteristics to receive all types of industry.

Conditions and advantages for investors in the aerospace industry

1. Geographical position
2. Trade agreements
3. Experience in other high-tech industrial sectors such as automotive, electrical and electronics.
4. Skilled labor force

Among the advantages of San Miguel de Allende is also the access to qualified personnel from the Aeronautical University in Querétaro, which offers three engineering programs, as well as technical careers and training for aerospace industry personnel to train specialists, which means that industries located in San Miguel de Allende can count on the necessary manpower to operate in the industry.

In addition, another of the benefits of the Business Park is its proximity to the city of Querétaro, since new industries will be able to benefit from the proximity of a highly developed city, but with enough independence to innovate and establish themselves in one of the areas with the highest quality of life that Mexico has to offer.

San Miguel de Allende promises to be a city with growth in the aerospace industry through the installation of factories, the incorporation of companies into the supply chain and the hiring of Mexican labor.

State Training Institute (IECA)

The IECA San Miguel de Allende campus invested approximately 19 million pesos to build and equip the Technological Nucleus with plastic injection molding machines, CNC machining center, lathes, milling machines, pneumatic equipment and industrial welding. With its start-up, training programs have been initiated for the formation of qualified technicians. This was reported on the official government website of the entity.

The advantage of operating this training center is that it can provide qualified service to the industries of the Business Park, with the training of personnel and state-of-the-art equipment compatible with the industry.

Sources:

¹ Portal of the government of the state of Guanajuato.