After several years in this industry, and having very recently devoted more of my productive time organizing investing seminars of Mexico around the U.S., Japan and Europe, I
have realized there is a huge potential for many real estate advisors
who are not tapping into Mexico for their clients. They should be
asking the Mexico question — why not Mexico?
The Mexican economy has been stable for the last 4-6 years, and
surprisingly, is reporting better macroeconomic numbers than many
developed countries. We have seen how the security issues that
existed from 2008 to 2010 have been kept under control. With regard
to direct foreign investment, we have seen a considerable increase in
the last two years. In 2013 the federal government passed the largest
number of structural reforms ever passed in one year. The automotive
industry is booming, and while a handful of politicians may disagree,
all of these events have bolstered Mexico back to the world scenario.
The United States and Canadian markets are our main partners
in this growth. Experience has proven that 10 years of NAFTA
have benefited the three countries more than expected. The
integration is now a reality in more than one way.
There is so much potential with this NAFTA environment. Let
me share with you some reasons why partnering with Mexico
could work in your favor.
The automotive industry, for example, is growing rapidly
in Mexico with an 18. 2 percent annual increase from 2009
to 2013, stepping up from 10th to eighth place in terms of
worldwide automotive production. Brazil, in comparison,
has reported an annual growth of 4. 1 percent during the same
period, moving it down from sixth to seventh place. According
to the Mexican Association of the Automotive Industry
(AMIA), Mexico will leave Brazil behind by 2018, becoming
one of the top six world automotive manufacturers. It would
seem that our strategy as a country is to export as many cars
as possible. Mexico has 44 free trade agreements and is
strategically located for this purpose. GM, Ford, Volkswagen,
Chrysler, Nissan, Honda, Mazda and Audi have all announced
new investments in Mexico in the last five years. There are
strong rumors that Toyota, BMW, Hyundai and Mercedes will
be doing something similar in the next couple of years.
The real opportunity for Mexican and other global entrepreneurs
lies with second tier suppliers. In the last 24 months we have
helped many tier one companies establish presence in Mexico.
Many are looking to supply the Honda, Mazda and Nissan new
assembly plants. The number of these companies is limited
to the current supplier base known to many of us (just walk
in the main corridors in the Tokyo auto show), but the list of