GUADALAJARA, Silicon Valley of Mexico – A Business Center in Mexico
Guadalajara is highly regarded for its friendly business climate and has become home to many high technology and other multinational companies. Modern industrial parks, many large office buildings and access to a well-educated work force make Guadalajara “The Place” for many national and foreign companies to do business in Mexico.
International business people are attracted to Guadalajara because of the abundance of quality hospitals, many recreational opportunities and pleasant year round weather. Also, there are high quality educational institutions and affordable housing for middle class and for upscale residents.
The economy of Guadalajara can be divided into two sectors. Commerce, including tourism, represents about 60% of the population. The second sector is industry, employing the remainder of the population. The city’s commercial activity, among all Mexican cities, is second only to Mexico City.
Recently, industry has been the engine of economic growth for Guadalajara. Some of the products produced by industry include beverages, auto parts, footwear and furniture.
Concerning domestic products, 60% of these are sold domestically. Most of the remaining products are sold to the United States. Guadalajara’s economic growth is significantly tied to the United States, as they are Mexico’s largest trading partner. Businesses in Guadalajara also looks to the U.S. for investment resources to help grow their economy.
In Mexico, Guadalajara is a main producer of software and electronic components. In the information technology sectors, it has been given the nickname “Silicon Valley of Mexico.” When the North American Free Trade Agreement (NAFTA) was signed, many technology companies began to build facilities in the Guadalajara area. Some of these companies include IBM, Intel, Hewlett-Packard, Siemens and Oracle.
MONTERREY, the Sultan of the North – A Business Center in Mexico
Monterrey is considered one of the most business friendly cities in Mexico. Therefore, it has received the nickname “The Sultan of the North.” The first steel mills in the city opened in 1903, and the processing plants produced half of all Mexico’s steel output in the 1990’s.
Because of its friendly and open business climate, it has grown into a significant industrial and commercial hub. With Monterrey’s business success, it has created a modern and high tech convention and exhibition center. Many multi-national companies are located here, taking advantage of the business friendly attitude, cultural and entertainment possibilities and proximity to the U.S. border.
There are many colleges and technical learning centers in Monterrey producing a very desirable work force. Tec de Monterrey is considered one of the best universities in Latin America. With a well-trained work force and much opportunity, the unemployment levels in Monterrey are typically among the lowest in all of Mexico.
The city’s per capita income was $46,634 dollars. In 1999, Fortune magazine rated Monterrey the best city in Latin American for business. The America Economia magazine currently ranks them third in Latin America. Their GDP in 2006 was $78.5 billion dollars, and in 2006, according to Mercer Human Resources, Monterrey was ranked fifth in Latin America in the Quality of Life category.
Because the city has a large steel industry, it is often referred to as “the Pittsburgh of Mexico.” Besides steel, the other main industries in Monterrey include brewing, auto parts, cement and glass.
MEXICO CITY, La Capital – A Business Center in Mexico
In 2007, the GDP of the metropolitan area was comparable to countries such as South Korea. In 2007, the top 25% of wage earners in Mexico City had a disposable income of about $99,000. Because of the high purchasing power of many residents, Mexico City is an attractive market for luxury goods. These goods include jewelry, luxury cars, technology and expensive clothes.
According to a study done by PricewaterhouseCoopers, Mexico City produces about 22% of the GDP of Mexico. If you compared their GDP to world-class cities, Mexico City would rank as the 8th richest city in the world behind cities such as Paris, London, Tokyo and New York and it is the richest among the cities of Latin America. Because of the fast growing economy, Mexico City’s GDP is set to double by 2020.
The level of household expenditure in Mexico City is similar to that in Japan or Germany. Even though the national average of all households is 4, the average number here is 3.7.
Many foreign companies open their branches in Mexico City. The city is a center of business for Mexico and is closely linked to other business centers of Latin America. Quality workmanship, affordable health care and a good deal of access to luxury housing make Mexico City appealing to company executives. These factors help to differentiate Mexico City from many other cities, making it easier to do business there.
Each of these three cities in Mexico are well known for their friendly business climate. Each city has a unique history, work force, political and geographic location. These are several of the significant business centers in Mexico and internationally. The continued growth of this expansion is expected to grow in the future decades.