Tamaulipas: an entity with the highest growth in Mexico’s northern border

With the creation of 5,906 formal positions, Tamaulipas occupied the third national position in jobs generation during May, located among the northern entities in the country with more dynamism shown this year.

Thus, together with Mexico City and the Estado de Mexico, Tamaulipas leads the list of the only 3 entities that generate more than 5 thousand formal jobs, according to figures from the Mexican Social Security Institute.

From January to May, formal employment in the entity has grown in 9,887 positions, 82 % (8,135) and 18 % (1,752) casual workers, which means that most of them belong to works that guarantee a formal livelihood at long term for the people of Tamaulipas.

In the State, formal workers registered before the IMSS in May 2019 were 684,150, in this data standout for their participation in the transformation industry with 44.3 % and commerce with 17.2 %.

In the distribution of the number of workers recorded before the IMSS per region, Reynosa groups 34.1 % of the total, Tampico concentrates 20.4 % and Matamoros 18.9 %, in this three regions is concentrated more than 70 % of the total in the State; in addition rebounded the generation of jobs in Ciudad Victoria, with 1,977 bases recorded from January to May.

Global results in formal jobs generation until May 2019, said that Tamaulipas is 12 position, above Coahuila, Yucatan, Hidalgo, among other entities.

MORE DIRECT FOREIGN INVESTMENT IN TAMAULIPAS

Two new maquilas will start operations in the next six months in the bordering city of Reynosa, while one more will expand its project, encouraging the economic development of this northern area of the entity.

English companies, Indian and Japanese will generate about one thousand new jobs in the city.

The operations of these three foreign companies represent an approximate investment of 80 million dollars and the creation of about one thousand new jobs.

The arrival of Indo-MIM Pvt from India and of Delphi Technologies from England, as well as the expansion of Nidec Motor Corp from Japan, confirms the leadership of the border area of Tamaulipas with the United States as an important industrial development point in northeast Mexico.

Delphi Technologies is investing more than 22 million dollars for their new plant in Reynosa by generating 400 jobs, meanwhile, Indo-MIM in Reynosa will create 200 new jobs with their 25 million dollars investment; Nidec Motor Corp. will grow their plant to 126 thousand square feet and will add 400 new jobs to those existing.

Indo-MIM Pvt is dedicated to the molding and manufacturing of metallic pieces, while Delphi Technologies will manufacture devices for hybrid and electric vehicles, and on its expansion, Nidec Motor will produce engines and controls for the industrial sector, commercial and residential.

Only in 2018, Tamaulipas located as the number 7 state in foreign direct investment and is working in promoting the arrival of more investments to continue progressing.

Leonel Cantu Robles, secretary of Economic Development in Reynosa, said that the two new companies arriving in the city, Indo-MIM Pvt from India and Delphi Technologies; as well as he also mention the confirmation of an investment of more than 500 million pesos and more than 2 thousand new jobs with the Smart commercial chain, which will be opening 4 new branches in Reynosa.

Additionally, this city is waiting for the arrival of more subsidiaries from pharmaceutical chains like Benavides, Farmacias Lopez, and Farmacias del Ahorro; as well as Oxxo and Waldo’s stores.  Cantu also announced the arrival of the C&A store, and they are currently looking for a space for their installation.

A BORDER READY FOR INVESTMENT

The border as such, mainly regarding infrastructure is ready if the investment comes in rhythm as they usually do – that their decision process takes a year – the border could be ready.  When companies take a decision it takes time and that time allows the developer of the park to be prepared.

The state of Tamaulipas is also ready and is looking for a way to promote opportunities.

I believe markets are changing, but not to the degree that foreign countries are interested in and establish here, but it will be would be fine to encourage promotion even more.  Mexico, due to its geographic location, calls international trade.

Tamaulipas is a privileged state, its border area is highly competitive globally, especially talking about logistics; this state is convenient to settle business strategies.

We have quality infrastructure and continue improving constantly.  We have been pioneers in industry development and have reached a record growth compared with other markets.

“Tamaulipas is a Region in continuous growth and NAI Mexico is convinced that it is a market that could have many opportunities and has more possibilities for success,” said Samantha Almaguer, regional manager of NAI Mexico.

INDUSTRY TREND

“We are being receivers of a forced fight of international markets, it not that we are cleaver, but this is an opportunity to attract investment,” said Luis Cantu, an attorney specialized in maquila companies, partner of the firm Torre, Cantu & Asociados.

Mexico is a born receiver, allows countries taking advantage of a qualified workforce, economic and employee preparation since it is a level of any industry and technology.  Mexico is prepared, which will help more is that the federal administration makes an effort of uniting the States to try to attract more investment.

“Which trend do I see? Markets’ trend to continue moving and we will take advantage of that, and here particularly at the border see the opportunity for them be located here, either in the United States or in Mexico, since both countries will be benefited.  If this border is strongly triggered, it helps both sides and it is the moment of using the best strategies since currently, everything is changing,” said Luis.

Additionally, Europe is interested, and due to the tariffs situation with the United States, it is convenient trying to see what can be done in this region.

“We have to use that, if the industry comes, either because it is forced, due to commercial war between countries or whatever, we have to use it, establish and trigger it for more to come.  If the industry arrives and other things are triggered such as supply, human talent, commerce, etc.,” explained Cantu.

There will be no many changes by the end of 2019, except those that have already begun, those already being established will complete that stage.  We are observing some companies moving operations from the north of the United States to the South due to logistics and strategic issues and much promotion work.  For 2020, if this trend continues, everything will begin moving.

“It would have been not bad having an administration in Mexico willing to promote since this is the moment; if companies want to come and invest in this country; if you open the door they arrive,” said Luis Cantu.

TAMAULIPAS OPENS ITS DOORS TO ENGLISH PROJECTS

One of Tamaulipas' strategies to achieve diversification in foreign investment origin, is to keep direct communication with diplomacy from countries that have shown interested in the area, such as the meeting with the British Consulate General.

Currently, there are business projects settled in the entity which are originally from that European nation, the Ministry of Economic Development seeks to consolidate more plans in the automotive and energy sectors.

Astrid Salazar Degollado, director of Investment Promotion, gathered with the consul Andrew Morris and with Luis Salazar, director of Commerce and Investment, to agree to the collaboration of both parties and achieve triggering more projects.

In a talk was established as a priority to work in the development of more commercial opportunities for Tamaulipas.

PROJECTS THAT WILL MAKE THE ESTATE MORE ATTRACTIVE

With the beginning of the operations of Puerto Seco, Tamaulipas will become more competitive, particularly Reynosa.

“Once Digiport starts operations – Puerto Seco in Reynosa – it will become a radical change for this city and for the state of Tamaulipas in general.  This is a very positive project to make us competitively more attractive with all the new Chinese companies which are willing to settle in the northern area of Tamaulipas; this makes it much more attractive,” said Joaquin Spamer, director of CIL.

PROMOTING THE REGION IN CHINA

A new opportunity to promote the advantages and benefits of investing in this area was held in July 2019.  When a special commission led by the McAllen Economic Development Corporation (MEDC) traveled to the Far East to meet with Chinese companies aiming to let them know the benefits of this region for investment.

Regarding this, Lauren Warren, chairman of the General Committee of the MEDC, said that the idea at the beginning was to gather with 100 companies that showed their interest in locating or expand their operations in this region; however, the opportunity was extended to 400 Chinese companies.

For self-experience, Laura Warren has seen how MEDC has supported binational commerce; considering this corporation as one of the only entities that are aware of the importance of these ties.

“The vision MEDC has had for more than 30 years, has been established and reinforced. The binational development always has settled a path in how business is established internationally; what is done binationally affects internationally,” assured Laura Warren.

VISION FOR MATAMOROS

Maria del Carmen Cadena, president of the Committee for the Economic Development of Matamoros said that this border city began the first semester of 2019 with a Little difficult period regarding labor environment; however, there were existing projects that had to continue and be settled this year; one of them was Nordex company recently open in May 2019 and dedicated to wind power blades.

Another Project already at door was JSB Global supplier for TPI Company, focused on their production to one part which goes inside wind power blades.  JSB was of the first companies that opened at the beginning of 2019 creating 150 new jobs, and in turn, they will bring a supplying company by the end of 2019.

A company that opened operations in 2018 was Merit, and its success has been such in Matamoros that they have continued growing their production lines.

MATAMOROS: THE MOST IMPORTANT MULTIMODAL PLATFORM IN THE STATE

Within the advantages that distinguish Matamoros, in addition to being one of the main border cities in the State, is considered the most important Multimodal Platform in Tamaulipas, since it has a railroad, a port, airport, and international bridges; logistically talking, Matamoros has everything.

“We could be a multimodal airport, we would like to return the confidence to companies already settled here, we would like companies to know we are here, that we can help them and support them as they need,” explained Maria del Carmen Cadena.

Within the projects in which they are working is the Matamoros Customs update; work is being done in speculative buildings to be ready for investment, in addition to the Port which is anticipated to begin operating in 2020.

“Local businessmen are ready to invest and give their best for Matamoros,” noted Maria del Carmen Cadena.

NUEVO LAREDO, AN IDEAL DESTINATION FOR INVESTMENT

The industry has had ups and downs with companies that have been a little down, but mainly due to structural changes or of models in the automotive industry, but they are in the process of training people for the new models and as soon as they are ready, growth will begin given again with them, which could generate a higher amount of jobs in the city.

1,300 direct jobs have been created, little less than what was created in the previous administration, but it is a positive trend; NLD is considered as the municipality with the lowest unemployment rate in the State and is considered within the 10 cities with a lower unemployment rate in the Country; this frames the economic activity.

However, in investments higher to highlight, what was developed at the Oradel Industrial Park with the new industrial buildings built – and that is about to be finished – this Park could increase, in more than 400 thousand square feet, the industrial and logistics offer with an investment higher than 20 million dollars.

Nuevo Laredo continues with an important economic activity and important projects are coming to the city.

The municipality of Nuevo Laredo has stood out during the first semester of 2019 due to new investments in the city, 2 to 3 businesses are being open per week.

“We continue to see interesting trends in supermarkets’ construction, convenient stores; in addition of the recent announcement of a new Smart, as well as of Walmart with some of their companies such as Aurrera, as well as an HEB intended to build a new store in the city,” said Francisco Javier Solis Morales, secretary of Economic Development in Nuevo Laredo.

MARKET ABSORPTION

REYNOSA

ZAT Logistics

Reynosa Sur

47,738 square feet

Logistics

Steelcase

Pharr Bridge Industrial Park

37,500 square feet

Warehouse

Empaques Rio Grande

Reynosa Industrial Park

69,800

Warehouse

Ametek

Villa Florida Industrial Park

30,692 square feet

Warehouse

HCP

Villa Florida Industrial Park

60,773 square feet

N/A         

MATAMOROS

Nordex

Las Ventanas Industrial Park

Investment: 1,200 MDD

Jobs: 800

JSB Global

Los Palmares Industrial Park

Jobs: 150

NUEVO LAREDO

Mag Industries de Mexico, S.A. de C.V.

Finsa Industrial Park

Jobs: 10

Investment: 1.5 MDD

Linamar Driveline Systems Mexico, S. De R.L. de C.V.

Rio Grande Industrial Park

Jobs: 350

Investment: 24 MDD

Soluciones Logisticas Cryptex

Oradel Industrial Park

Jobs: 150

Investment: 11 MDD

Industrial Building 12 Oradel

Oradel Industrial Park

Jobs: 75

Investment: 10 MDD