MARTEL INDUSTRIAL PARK S

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2 MARTEL INDUSTRIAL PARK S - AAA BUILDING CONSTRUCTIONS. - LAND AVAILABLE FOR SALE OR BUILT TO SUIT HECTARES TO OFFER. OFFICES FOR RENT IN SAN PEDRO GARZA GARCIA, N.L. Contact us: APODACA, N.L. STA. CATARINA, N.L. PESQUERÍA, N.L. REYNOSA, TAMPS. +52 (81) Ing. Jorge Flores jorge@martel.com.mx +52 (81) Arq. David Armendáriz david@martel.com.mx +52 (81) Ricardo Margáin Zoazya 755 Col. Santa Engracia San Pedro Garza García C.P Arq. Adrián Leal adrian@martel.com.mx +52 (81) (81)

3 Contents 6. The giants of the industry Opportunities for Mexico industrial real estate Competitive and sustainable infrastructure 26. Mexico, destiny for productive investment GROW BEYOND Leaders in Industrial Real Estate WE DESIGN AND OPERATE WORLD CLASS COMPREHENSIVE REAL ESTATE DEVELOPMENTS THAT PROVIDE CUSTOM-DESIGNED SPACES TO ENSURE THE SUCCESS OF YOUR OPERATION. 25 Stories of SuCcess AGM Automotive begins expansion in Mexico A German in Tlaxcala Bombardier in Querétaro INDUSTRIAL PARKS Plug & play facilities 38. Government trusts attract investors real estate development in Mexico SEPTEMBER / october 2016 GRUPO REFORMA industrial@reforma.com Alejandro Junco de la Vega President and CEO Rodolfo Junco de la Vega Vice President Lázaro Ríos Chief Managing Editor Ricardo Junco Garza Chief Advertising Officer Ignacio Mijares Chief Financial Officer Alejandro Junco de la Vega E. Chief Digital Officer René Delgado Executive Editor Roberto Zamarripa National Editor René Sánchez Business Editor Leonardo Valero International & Soft News Editor Juan Carlos Pulido Special Editions Manager / Marcela Díaz de Sandi Advertising Coordinator Elena Ramírez Commercial Editor / Fabiola Sánchez Editor / Zusett Santa Ana Commercial Art Editor / Design / Anain Gutiérrez Design / Lourdes Otero Translation Iraí Meráz Advertising / ext / irai.meraz@reforma.com LOCATIONS IN MEXICO Hunting for specialized professionals Gerardo Lara Advertising Director Roberto Castañeda Deputy National Editor Miguel González Circulation Director Jorge Arturo Padilla Deputy Business Editor Luis A. Soto Digital Content Editor Guillermo Toledo Art Director Jorge Obregón Production Manager Edgar Espinosa Chief Technology Officer Ricardo Del Castillo Deputy Art Director Roberto Segura Circulation Manager Published and printed in the workshops of: Consorcio Interamericano de Comunicación, S.A. de C.V., Av. México-Coyoacán No. 40, Col. Santa Cruz Atoyac. Delegación Benito Juárez, México, D.F Printed by: División Comercial MILLION SQF DEVELOPED info@finsa.net /finsaintl Distribution: Wall Street Journal: Atlanta 5,000; Chicago 10,000; Detroit 18,000; Greenville, 5,000; Houston 10,000; New York 5,000; Pittsburgh 7,000; Washington DC 10,000 copies. Grupo Reforma: Reforma 30,000; El Norte 15,000; Mural 5,000 Website: Image bank: Shutterstock Follow us: Facebook: /ReformaSuplementosEspeciales / The Wall Street Journal news organization was not involved in the creation of this content REAL ESTATE INNOVATION Experience. Innovation. Development.

4 6 giants of the The industry In Mexico Industrial Parks are more than surfaces geographically delimited and designed for the settlement of industrial facilities, given the opinion of Pablo Charvel Orozco, President of the Mexican Association of Industrial Parks (AMPIP), there are a kind of plug and play, industrial developments which companies arrive to establish without concerns to begin working in suitable conditions of location, infrastructure, facilities and services, and with a permanent administration for its operation. Pablo Charvel Orozco AMPIP president Photographer: Roger Méndez.

5 8 F oreign investors that arrives Mexico to visit industrial parks become surprised, because they find interesting to find first world developments, which have several certifications and industrial plants of world class, said in interview the president of AMPIP. Industrial parks have been gradually evolving, they are no longer maquiladora or assembly plants, they ve become incentives that attract an industry increasingly specialized, which has generated a real technology transference through the different regions of the country and a real bond between the academy and the industry; it is beginning to create a virtuous circle in which workforce is better prepared, salaries are better and we are attracting more industry because we have trained engineers for the work, remarked Pablo Charvel Orozco. In this context, he declared that investors also have noticed that there are great talents in the Mexican labour. Lots of the industries are installing their research and innovation institutes in Mexico, and that is cause of much pride for us, and for that, from industrial parks we try to provide all the necessary facilities. The future is to invest in innovation and technology to continue being competitive and successful and that industry zone survives against all the challenges of the 4.0 manufacture, of the robotization and of the automatization. It is worth mentioning that the AMPIP works with continuous improvement and better practices programs to offer competitive industrial parks and standardize them with world tendencies, for example, through certifications as Authorized Economic Operator Standard (AEO), its industrial parks will be the first ones at a global level to obtain it. Photo: IAMSA. AMPIP in numbers 68 corporate members: private developers, investment funds, REITs and State Government Trusts. 250 industrial parks in 24 states. 2,500 tenants. 2 million jobs. 23 million sqm of constructed buildings. Source: AMPIP In AMPIP we attract the industry and we are an enabler to provide optimum conditions for investment in order that investors feel confidence. Great investments are made in their fabrics and industrial plants, that is why we provide optimum conditions and warranties so that they feel comfortable and secure to come into Mexico, noticed Charvel Orozco. He added that the advantage of settling in an industrial park is that generally these are developed in regions connected to highways and sometimes with railroad sidings and they are located near areas of population where workforce can be found, technical schools or universities. An industrial park is a limited area that has services and quality infrastructure, I mean streets well paved, with excellent signaling, as well as tanker trucks entry and exit. In this limited area that we call industrial parks we receive fabrics, maquiladora industry or logistics warehouses that settle to have the benefits, to obtain all permits required and also to avoid conflicts with population areas, because the industry is not mingled with households.

6 10 Industrial parks in Mexico We are very proud that Mexico has excellent industrial parks that can be compared with any park in the world. Pablo Charvel Orozco, AMPIP president. Monthly cost per rent by region: NorTH: 4.00 USD per m 2 Bajío: 3.76 USD per m 2 CentER: 4.26 USD per m 2 Source: AMPIP / Jones Lang LaSalle Pablo Charvel is convinced that all Mexico has the potential to develop industrial parks. However, he noted that each area of the country blossoms according to their characteristics. There are areas that have developed more in the country, for example, northern border region was first promoted, when maquiladoras started to arrive and over the years the regions have been gradually evolving based on the kind of companies that arrives. After North American Free Trade Agreement (NAFTA) began the development of north zone to the center, in Monterrey, Guadalajara an all Bajío, all around metropolitan area because in the domestic market there is also a great demand of industrial areas, explained AMPIP president. He affirmed that, the alliance between AMPIP and ProMéxico has been strategic to promote Mexico as an attractive country for the industry as a manufacturing platform for the world. We also make a work of direct promotion in foreign agencies, but it all depends on the ambition of each industrial park, of its characteristics, but we all make promotion outside and inside to attract industries. At the beginning, we convince them to invest in Mexico, then in certain State, then in certain city and subsequently in one of our industrial parks. Furthermore, he observed that the strategic location, Mexico s trade agreements with different countries and the access to qualified labour at competitive costs are some of the principal incentives that generate the investment of Mexico s industrial parks. They also come for the logistics, to produce in maquiladora schemes; companies come and settle to know the different markets of the region. The decision to lease or buy in an industrial park in the country depends on the internal strategy of each company, said Pablo Charvel Orozco. Sometimes the company prefers to Principal industrial markets in Mexico 1. Monterrey 2. Cuautitlán /Tepotzotlán 3. Ciudad Juárez 4. Tijuana 5. Guanajuato 6. Guadalajara 7. Querétaro 8. Toluca 9. Saltillo / RamosArizpe lease an industrial plant and invest in what they can do best, in its production, or its machinery and we become his partners in real estate. AMPIP president explained that in all the industrial parks exist different schemes to sign up clients. When we talk about built-to-suit, for example, it means tailor-made, a plant or an industrial building with certain requirements of height, of resistance in the floors and set to install its production lines. For example, sometimes they require certain wide of the plant, certain percentage destined for offices or with capacity for special installations, then we make a tailor-made, exactly as industry requires. In this scheme we can lease or sell the plant, sell the land and build the plants according to their necessities. He admited that currently, the Mexican industrial real estate market is attractive, consequently many companies are arriving. In this context he recommended industrial developers to have a corporate building to have something to offer to clients, because some do not like to wait for it to be built but they demand industrial plants that allow them to start operations immediately. Thanks to the effort and the recovery of the economy today va- 10. Reynosa 11. San Luis Potosí 12. Mexicali 13. Aguascalientes 14. Chihuahua 15. Puebla 16. Matamoros 17. Nogales 18. Nuevo Laredo Source: AMPIP / Jones Lang LaSalle cate of industrial parks has been reduced and more developers are building speculative buildings to bring new investments. The majority of the regions have a minor stock of ten percentage of vacate. Companies that have settled in Mexican industrial parks in their majority are of American and Asian origin, although there is also presence of Germans, Spaniards and entities from other parts of Europe. And although big corporations as automobile companies are owners of its properties, lots of their suppliers generally choose to lease. AMPIP president concluded saying that, the creation of industrial parks generates virtuous circles in different regions of the country, in consequence, social and tourist development, as well as more economic flow in different levels. We as industrial developers actively participate in the economic development of the cities and communities where we settle. The success stories are along 250 industrial parks that we have registered in our Association, which have cooperated in the development of the communities; are long-term real estate businesses with a high impact in the national economy. FINSA Matamoros Norte. Photo: Prologis. A little bit of history The history of industrial parks in Mexico dates back to the sixties, at the end of the Bracero Program, a temporary labour agreement celebrated with United States in 1942 that allowed Mexican citizens to work legally across the border to meet the lack of local labour who attended the Second World War. However, by the end of the War, workers were replaced by soldiers who returned home. In order to solve the unemployment problem that was generated in the northern border at the end of the Bracero Program, through the National Border Program (PRONAF) maquiladoras, domestic and foreign companies operating under a tax regime which allows them to import inputs free of tariffs for assembly, transportation or repair of goods destined for exports. Given the demand for infrastructure for the installation of maquiladoras, PRONAF included the creation of the first industrial parks in the country with the support of public resources through Nacional Financiera. To such an extent that by 1966, aroused the first industrial park in Ciudad Juárez under the leadership of Jaime Bermúdez, founding partner of the AMPIP. According to the AMPIP, the advantages of an industrial park in Mexico can be understood from three criteria: it sits on privately owned land with permits required for the operation of industrial plants and distribution centers; has urban infrastructure and with water and discharge; electricity, telecommunications and natural gas options, rail, water treatment plant, fire station and other ancillary services; and finally it operates under internal rules and has an Administration which coordinates security, the proper functioning of infrastructure, promotion of real estate and general management procedures and permits before authorities. 11

7 12 for Mexico industrial real estate The industrial real estate linkage across North America is stronger than ever, thanks in part to the re-shoring and nearshoring of manufacturing and assembly, as well as the surge in e-commerce and consumer demand for fast delivery, said Thomas Bisacquino, president and CEO, NAIOP, the Commercial Real Estate Development Association. G iven Mexico s close proximity to the U.S. -the countries share 1,989 miles or land border- and the U.S. consumer s penchant for goodsconsumer spending comprises 68 percent of the U.S. economy- developing and operating industrial real estate facilities in Mexico is an outstanding opportunity, declared Thomas Bisacquino. Near-shoring, which is defined as the transfer of business processes to companies or facilities in a nearby country, where both parties expect to benefit from geographic proximity, and cultural, linguistic and economic linkages, is especially advan- tageous for real estate developers in Mexico and businesses and retailers in the U.S., as product originating in Mexico can reach U.S. customers in less than one week, as opposed to three or four weeks from Asia. Naturally, the close location between the two countries reduces transportation costs of actually moving the goods from manufacturing to consumer, increases speed to market and lowers inventory costs. In short, it is a valuable partnership that provides jobs, infrastructure and investment in Mexico that helps meet consumer demand in the U.S., explained NAIOP president and CEO. Bisacquino referenced Mexico s strong trade relationships that give exporters duty-free entry into 45 countries, and that s valuable for Mexico. By combining this trade advantage with lower-cost land and a skilled, eager workforce, Mexico is attracting auto and aerospace manufacturing facilities, among others. These type of facilities are especially advantageous for Mexico and the opportunities for real estate are immense, particularly for logistics and building facilities that are in close proximity with one another with access to major transportation routes. The publication Americas Quarterly noted that 35,000 new airplanes will be needed to meet world demand over the next dozen years -and each Boeing 747, for example, is composed of 6 million individual pieces. That s boasted the country s aerospace component manufacturers to approximately 300, shortening the supply chain between the Mexico-based facilities and U.S. airplane assembly plants from Seattle to Mobile, Alabama. Adding extra benefit to the regions where manufacturing facilities are expanding, the nearby communities are benefiting with infrastructure, schools and amenities to support the workers families. Photo: NAIOP. Thomas Bisacquino NAIOP president and CEO. For real estate developers in Mexico seeking lessons learned from stateside industrial facilities, recent success in the U.S. relating to industrial facilities has centered one commerce structures. For real estate developers in Mexico seeking lessons learned from stateside industrial facilities, recent success in the U.S. relating to industrial facilities has centered on e-commerce structures. While Mexico does not have as robust an e-commerce delivery system as the U.S., Mexican developers would be wise to focus on the automation taking place in these facilities as it is only expected to expand to traditional warehouse and distribution centers over the coming decades, said NAIOP president and CEO. Among best practices, to accommodate automation, floor slabs must be perfectly level in order to enable sensitive equipment to operate effectively, and they also must be able to handle extra loads from mezzanine stacking that goes up three and four levels. Ceilings are being built to 36 and 40 foot clear heights to accommodate material handling equipment and mezzanines, and roofs must also be stronger to support Lessons learned from U.S. large heating, venting and air conditional systems (HVAC) and material handing exchange (MHE), Bisacquino added. Capacity is no longer being measured in square footage alone, but also in cubic space and throughout of materials, that measure the number of units that can be processed at a facility over some period of time. Conceptualizing and building vertically, to take advantage of cubic space, can be more cost effective than building in a traditional horizontal manner, he explained. Beyond industrial facilities, there s tremendous value in investing in human capital in today s knowledge-based economy. Technology makes it possible for an innovator from Mexico to partner with a U.S. business and a Canadian investor, and this is a true reflection of a global economy where ideas, capital and goods traverse, concluded NAIOP president and CEO. 13

8 14 Competitive AND sustainable infrastructure Photos: AMPIP / Vesta. Industrial Park 1,400 ha Customs and Strategic Bonded Warehouse In Mexico, nearly two decades the Mexican Standard for Industrial Parks was created, a voluntary standard whose objective is to evidence that industrial parks in the country comply with regulations, the feasibility of services, the design and the world-class of the infrastructure. Railroad Connectivity with two Rail Companies (KCSM & Ferromex) World Class Infrastructure info@interpuertomty.com T. +52 (81) / 25

9 16 S ince 1999 and with the validation of the Secretariat of Economy, the Mexican Association of Industrial Parks (AMPIP) actively promotes the certification of industrial real estate developments under the Mexican Standard for Industrial Parks. In interview Claudia Ávila Connelly, executive director of AMPIP, said that the Mexican Standard for Industrial Parks came up almost 20 years ago in response to the concerned of industrial developers members AMPIP that the Government differed the projects that comply all standards of the projects of those which does not necessarily comply the standards, because at that time the government was supporting industrial parks through Nacional Financiera with non-repayable funds as a public policy to promote jobs and strengthen the industry. It was necessary to define in a consensus basis criteria, and the most feasible option was to create a voluntary basis, because in Mexico there are two types of standards, mandatory, which are the NOM, and voluntary which are the NMX. Although the standard was updated in 2011, it is noteworthy that on Friday February 19th, of this year was published in the Official Journal of the Federation (DOF) the Project to update the Mexican Standard for Industrial Parks NMX-R-046-SCFI for public consultation for a period of 60 days. This new version consider the advancement of technology, in telecommunications and safety matters, as well as issues related to the environment and quality of infrastructure In an appendix, the Federal Attorney for Environmental Protection (PROFEPA) shared with us all regulation that a park must comply to become a clean industrial park evidencing execution practices of environmental protection, it is not a mandatory criteria but a voluntary one. And another point that changes the norm and its worth mentioning, is that the majority of the companies that settle in these industrial parks is light industry, so they are not necessarily high water consumers but they do require water services including bathrooms, explained the executive director of AMPIP. She mentioned that there are four versions of the Mexican Standard for Industrial Parks. The Federal Law in Metrology and Standardization stipulates that every five years, at least, the rules should be updated because often, technology or other regulations are constantly changing and they need to be updated. Nowadays, we are in the last phase of the 2015 version, for the final version is released and be the one to operate with. Claudia Ávila Connelly emphasized that the spirit of the rule is to give certainty to foreign investors, especially in regulatory issues, which can be complex. The industrial parks with a certification gives that certainty, and that is the great feature of an industrial park in Mexico, because besides the technical part of infrastructure, also they are located near major routes of foreign trade, which facilitates the access to markets and transport and therefore all the logistics. It is worth mentioning, that the firm CIEN Consultores, with which the AMPIP has established an alliance, is the only Verification Unit accredited by the Mexican Accreditation Entity (MAE) to make an audit for the compliance of an industrial park under the Mexican Standard for Industrial Parks. The first step to obtain the opinion of compliance is to request verification service. Claudia Ávila Connelly Executive director of AMPIP Photographer: Roger Méndez. Best practices Besides renting out a plant, companies that decide to settle in industrial parks in Mexico carry out their operations in a business-friendly environment with the community in which best practices have been implemented. To fulfill the mission of promoting the development of competitive and sustainable industrial parks, AMPIP encourages the implementation of best practices in environmental protection so that companies operate in a suitable environment that allows them to develop their business efficiently. A few years ago the customers that seek to rent out plants not only asked for a strategic location and a plant at a competitive lease rates per square, but also that the park had environmental protection policies, which was previously not a criterion. That forced them to think in generating evidence of compliance of policies to protect the environment, affirmed the executive director of AMPIP. Advantages of industrial parks in Mexico In Mexico, an industrial park is a delimited area of land that complies the following main criteria: ONE. It is settled on private land and has the required permissions for the operation of industrial plants and distribution centers. TWO. It has urban infrastructure, as well as water and electricity, telecommunications and with options of natural gas, rail, water treatment plant, fire station and other additional services. THREE. It operates under by-laws and has an Administration that coordinates the safety, the good functioning of the infrastructure, the promotion of the buildings and the general management of procedures and permits with government authorities. Photo: Fibra McQuarie. Since 2013 AMPIP has established the Green Industrial Park Recognition (PIV) that distinguishes those developments that take actions to reduce water consumption, energy and polluting the environment emissions and that demonstrates that they have taken action and established commitments for continuous improvement. Also, it offers members the recognition Sustainable Industrial Park (PIS), which has a wider scope, as it is given only to developments that have comply three criteria: Green Industrial Park Recognition, certification under the Mexican Standard for Industrial Parks NMX-R-046-SCFI-2011 and Environmental Quality Standard, issued by PROFEPA. On safety matters, the AMPIP promotes a culture of safety through the implementation of international safety standards. In these best practices, stands out the services of physical and patrimonial safety standards, and the use of technologies and procedures that allows to establish cross-linking systems to connect all functional areas. The aforementioned is a prelude to eventual certification OEA or New Scheme for Certified Companies (known in Mexico as NEEC) for industrial parks and in-bond warehouses that operate in Free Trade Zones. Finsa, two industrial parks in Nuevo León; PIMSA, two industrial parks in Mexicali; Trust of the Industrial City of Xicoténcatl with two industrial parks (including one of Vesta) in Tlaxcala and one of the Industrial WTC in San Luis Potosí are the first ones that are in the process of obtaining certification NEEC, revealed Claudia Ávila Connelly. Source: AMPIP 17

10 18 Baja California Me xi Sonora Chihuahua Coahuila Nuevo León Tamaulipas Industrial parks in mexican land The CEO of ProMéxico noted there are some country s leader States that are developing industrial parks in Mexico, which stands out for its infrastructure, skilled labour force, geographical location and provision levels, as you can see them on the map. Zacatecas co, Guanajuato Querétaro Hidalgo destiny for productive investment JaliscO Estado de México Puebla According to Francisco González Díaz, Chief Executive Officer of ProMéxico, the commercial opening of the mexican market since the signature of North American Free Trade Agreement (NAFTA) in 1992, the changes in the macroeconomic policies in the country and the amendment to the Foreign Investment Law were some determining factors that encouraged the creation of more industrial parks, which have played an important role in Mexico s integration to global value chains as they collaborate for the establishment of new operations in our country. 19

11 20 M Photographer: Larissa Sánchez. Francisco González Díaz CEO of ProMéxico. exico is a key supplier for the USA in sectors such as automotive, aerospace, electronics, medical devices, to name a few. In this regard and as a relevant manufacturing country, industrial parks get a major meaning, as they are the center of operations for all manufacturing companies operating in Mexico, said in interview the Chief Executive Officer of Pro- México, Francisco González Díaz. The CEO emphasized, that the industrial parks developed in Mexico, have achieved to comply the requirements of foreign investors that seek for a location with easy access to consumers, with talent available (qualified and diverse labour force) and that provides competitive full costs (labour force, transportation, services and real estate); with suppliers presence and efficient infra- Photo: AMPIP. structure (roads, ports, house-hold schools, hospitals, industrial areas and hotels); with geographic location (connectivity and logistics facility) and with a businessfriendly environment (stable economy, reliable legal system, political stability, swiftness in procedures and regulations, tax and patrimonial security). This has allowed that industrial parks businessmen, mainly from Mexican Association of Industrial Parks (AMPIP), more easily foster Mexico as an investment destination. He said that an industrial park in Mexico has the required permits to operate industrial plants and distribution centers; offers in one place and in an integrated way, legal, administrative and operational certainty, promoting efficiency in supply chains, reducing costs and risks of assets and inventories; it operates under internal procedure and has an administration that coordinates security, the proper functioning of infrastructure, promotion of real estate and general management of procedures and permits before authorities. Likewise, he added that these industrial developments are relevant in the value chain (production) and supply chain (distribution centers). Mexico is characterized for having world-class industrial parks with international certifications one of them Authorized Economic Operator Standard (AEO), harmonized standard to the Customs-Trade Partnership Against Terrorism (C-TPAT) in United States that allows to certify quality standards and high level security, features that a country the size of ours in manufacturing should have and which makes it an attractive for investment, declared Francisco González Díaz. In fact, ProMéxico collaborates with AMPIP to attract investment to our country, because from the perspective of the officer, industrial parks are part of the competitive advantages of Mexico because they offer world-class infrastructure, that is why we should have no qualms about its promotion.

12 22 Industrial parks in Mexico are part of the competitive advantages of the country by providing world-class infrastructure, so we should have no qualm about their promotion. Francisco González Díaz, CEO of ProMéxico. Photo: Amistad Desarrolladores Industriales. Photo: Fibra McQuarie. It is worth mentioning, that companies currently settle in industrial parks in Mexico are manufacturing, logistics and distribution multinationals mainly. Even the CEO of ProMéxico reported that the sectors where increased higher rates of growth can be seen are automotive and transportation, aerospace, agri-food, logistics and distribution, as well as electrical/electronic. Currently, companies that have productive processes in our country do so with a long-term plan, they seek for efficiency, just-in-time and just-in-sequence processes. This has generated distribution centers, mainly in automotive, aerospace, medical equipment, chemical, pharmaceutical and food processed industries. The clusters in this sense mean a universe of companies working closely together and that given its location and proximity favor the reduction in travel times and production costs. The regions that have a development in certain sector, widen its coverage capacity and maintain a symbiotic relationship that encourages growth in diverse entities, explained Francisco González Díaz, who has extensive experience in the promotion of Mexico abroad, occupying several posts from 2002 to date related to that endeavor, among them Ambassador of Mexico to the Federal Republic of Germany.

13 24 Competitive Factors: Infrastructure and logistics The CEO of ProMéxico declared that in a country with manufacturing vocation as Mexico, is fundamental to have an adequate communications and transport infrastructure not only to take out the merchandise for the storehouse and manufacturing locations, but to transport it through sea, air and land trunk routes in the country to their final destination. An industrial park without the appropriate routes will not have the intended effect. In this context he stated, that one of the ways to encourage the development of Mexico is through the creation of infrastructure, as this generate jobs and trigger the country s economic growth. Without a doubt, a country that has an adequate level of infrastructure lowers the cost of transport of the merchandise, becoming more competitive. This statement can be seen in some of the northern and center states. He indicated that, investment in this area is a strategic issue for federal government, as established by the National Infrastructure Program , focused on generating infrastructure, transport logistics platform and modern communications to promote greater competitiveness, productivity and economic and social development. Francisco González Díaz added that, the infrastructure generated since the celebration of NAFTA in the mid-nineties has resulted in the creation of industrial buildings, warehouses, ports, railways and roads, which have boosted activities, related to supply chains and, Prologis Park Izcalli. therefore, has improved competitiveness, connectivity and logistics facility of our country. Multimodal centers where diverse means of transport favored alternatives to move cargo more efficiently. Modernization, expansion and construction of new airports provide the possibility not only to expand capacity but to become an important logistic node. On highways and ports matters, it stands out that the Transístmico Corridor, which connects the Gulf of Mexico to the Pacific, reduces distances, costs and open new channels that favor the development of the region, while the expansion of the four main ports in Mexico and the generation of new ports followed by the need to meet the demand for more places to introduce and export cargo in the country. He mentioned that another important issue is the phenomenon of reshoring that derived from an increased in production and in manufacturing jobs in the USA, industries that were previously installed in China as a matter of costs have returned to North America, which generates higher foreign direct investment flows to Mexico. The CEO of ProMéxico emphasized that this public organism -that in june 2017 celebrates a decade of existence-, plays an important role in attracting foreign direct investment into Mexico, as well as in the formation of clusters by generating value chains in procurement, technology and training of professionals. With a clear vocation for the agroindustry and metal-mechanics besides its unique logistics, Michoacán has a huge industrial boom and proper business to generate strong and growing investment opportunities, allowing its position as one of the more productive regions in the country and First Special Economic Zone in Mexico. A clear example of the aforementioned, is the Lázaro Cárdenas Port, considered as the preferred option entry and contact with Asia, standing out as the most important port in the country, being the only port in Mexico protected that can receive vessels up to 165 thousand tons of displacement with meters of deep at its access channel and meters of deep in the main dock for turning. In response to the demand of productive sectors, and to promote the establishment of companies and emerging industries, the State Government, through the Trust Industrial Parks of Michoacán, provides a structured network of industrial parks located within the Industrial Logistic Corridor Michoacán, which has access to the most important markets of Mexico, North America southeastern and Asia, positioning the State in an appropriate national and international investment context. Michoacán is and has been an important member of NASCO (North American Strategy for Competitiveness). NASCO is a trilateral network of private and public entities that focus on ensure a safe and efficient exchange of goods and services between Canada, the United States and Mexico. Because of these relationships and other important operational efficiencies, the Port of Lázaro Cárdenas is able to deliver ocean containers to five ports in the USA within 72 hours. Our industrial parks are under the most legal certainty and are fully equipped with electrical supplies, sewerage and drainage networks, access to natural gas, optical fiber and wastewater treatment plants, plus an interesting package of incentives to promote productive projects generating decent jobs, investment and economic development. Michoacán is a great place to do business. We invite you to visit our industrial parks located strategically, each one has its own characteristics, which makes them leverages of development; besides being true investment opportunities and an important gateway to international markets. The commitment of the State Government is to continue working to create better living conditions for local people and we are convinced that an effective way to accomplish that is to consolidate investments to stimulate employment and ensure the growth opportunities, translated into social justice for all. Andador Plaza 39, Morelia Industrial City. Michoacán, Mexico. Call +52 (443) /

14 26 & f a c i l i t i e s FINSA Maquilpark, Reynosa, Tamaulipas. Plug play customers is the land for the construction of the plants, or lease them an existing industrial plant, which they call speculative industrial buildings. The next scheme is to make a built-to-suit, which is making an industrial plant for the needs of the company, or a builtto-suit turnkey, which is an industrial plant even more equipped. Rafael McCadden commented that nowadays one of the new demands of the companies is that the largest industrial parks have access to the railway and that it has an intermodal terminal. In an interview, Cristina Torres, director of Real Estate Advisory of KPMG, considers that in Mexico all industrial buildings are triple-a. If you re going to analyze any developer or FIBRA, all the available plants are triple-a. If I have a company of whatever, in Mexico I can find a plant that complies with quality requirements and I can plug it in a week, which is basically the scheme plug and play. Regarding the issue of leasing industrial plants she declared that what industrial developers and investment funds are doing in Mexico is amazing. How do they lease? I do not lease anyone if I do not have a guarantee of the parent company, which can be in Denmark or wherever, but I m asking guarantees from Prologis Park Apodaca. the parent company to lease to companies in Mexico. So at a security level for investors is great. The level of quality in the investment can be overcome in Mexico. I realize that in this country we are in first league, your investment is safer here. Gonzalo Robina, president of the Mexican Association of Real Estate Investment Trusts (AMEFI) and the deputy director general of Fibra Uno, pointed out that to industrial parks in Mexico arrive world-class quality companies to Private industrial developers, investment funds, Real Estate Investment Trusts (FIBRAS, or REITs) and state governments real estate trusts offer a wide range of industrial buildings Class A in inventory, or tailor-made constructions for sale or lease, as well as shelter services for the establishment of new enterprises in industrial parks in Mexico. B esides looking for skilled and specialized workforce, strategic location, infrastructure, connectivity and access to dynamic markets, transnational corporations demand industrial spaces to operate in Mexico. Tailored-made buildings (built-to-suit), sale or lease of industrial buildings, according to the requirements of companies, is what developers of industrial parks in the country offer. The director Industrial & Logistics of Colliers International Rafael McCadden said that to settle on the right industrial park multinational companies require certainty regarding services and land, plus they will arrive to a place where there will be electricity, water, sewage, security, connectivity, manpower and technical schools. He added that in the industrial market the most basic scheme offered to Photo: Prologis. 27

15 28 establish in the long term. The vast majority comes to install a manufacturing plant, whether we are the ones who make the investment from a real estate perspective, what they end up investing is in special installation plants, in machinery. They are all looking for contracts of minimum 10 to 15 years of life. He noted that due to the demand for industrial parks, the FIBRAS are investing in properties that have a practically guaranteed return. The market is set out there, requesting this type of property, and then somehow it is something that has helped us. According to Luis Gutiérrez, president for Latin America for Prologis, industrial developers are agents in charge of providing first-class infrastructure to manufacturing companies and logistics distribution centers. In that sense industrial parks have become attractive as topic and register good growth compared with other type of properties, for example, commercial, office and residential buildings. What industrial parks have is that they are faster to do, then they have less risk and besides, customer s permanence is higher, and in that sense the risk is lower than in other sectors. He indicated that the trend is the lease of industrial buildings, providing flexibility for company s growth. If you are in an industrial park and there is more space is easier to unfold operations within the same locations, but also when you decrease. Many see the advantage that if they were owners then they would have a little stiffness to be able to increase or decrease their operations, or change for some reason the city or the space. Gutiérrez declared that the current portfolio of Fibra Prologis is made up of just over 33 million square feet of leasable industrial area. We keep doing more developments as we rent the ones we already have. More Prologis Park Los Altos, Jalisco. or less the pace we have is between 100 and 150 million dollars of investment in markets, and this should give us about two to three million square feet per year, which is a growth of seven to 10 percent of our total. Sergio Argüelles González, president & CEO of FINSA, said his company focuses on the existence of available product in the market with first class infrastructure that complies with international standards and at competitive prices to facilitate the beginning of operations of its customers in Mexico. We care that our developments have spaces designed for people who work within them, such as kindergartens, health clinics and recreational areas. Furthermore, the design of our parks and industrial buildings is based on the creation of value for users, both in the architecture and in the operation, which translates into significant savings for our customers, plus we have installed sophisticated security systems and access control, remarked Argüelles González. He added that the strength of FINSA allows them to access global capital markets to support leasing programs and expansions. In the next three years FINSA will double its portfolio of leases, that today amounts two million square meters. We will continue growing and consolidating Industrial Park FINSA El Saucito, Chihuahua, Chihuahua.

16 30 in Mexico. In the next three years we will be announcing eight new developments, focusing on the markets of northern, central and Bajío, and strengthening our presence in the Northwest. In an interview, Raúl Murrieta Cummings, former undersecretary of Infrastructure of the Secretariat of Communications and Transportation, concluded that industrial parks cannot operate without the strengthening of the national road infrastructure, so that in this administration will be end 52 highways, 80 works of modernization and expansion road, all with a logistically sense. You can have an industrial park with equipment out of the ordinary from the fences inward, but if you do not have good connectivity, good accesses, proximity routing, etc., then the park is not going to take off. Pacífico Industrial Center, Prologis. YOU SEE AN INDUSTRIAL FACILITY. We see four decades of helping global companies establish successful operations across Mexico. Sustainable industrial parks In Mexico, industrial parks incorporate best practices of environmental protection to be more attractive to investment and evidence its competitive advantages. Therefrom, in addition to offering industrial buildings designed to meet the needs of advanced manufacturing and distribution, real estate developers as VESTA provide industrial buildings built with industry standards and green building manual developed by the German agency DEG. When we acquired land reserves we look for the best locations and to be able to provide all the services. Our developments include measures to streamline water consumption, collection systems and reuse of rainwater, optimized energy performance of the plant, LED lights system for outdoor lighting and renewable energy for electricity production, among others, explained in an interview Lorenzo D. Berho, operations executive vice president of VESTA. He added that VESTA developments are world-class modern buildings, built with eco-efficient standards and strategically located in the industrial corridors with access to the largest market in the world and in a country with abundant skilled labor. The president & CEO of FINSA, commented that they have modernized their portfolio on several occasions because that want their buildings to obtain LEED environmental certification, in fact, they built the first LEED Gold certificated building in the state of Nuevo León. Also, they look for the operation of industrial parks to be certified as Environmental Quality by the Federal Attorney for Environmental Protection (PRO- FEPA). Thanks to this we have the recognition of financial institutions, and we have managed to sustain an annual growth rate of 20 percent in recent years. And, most importantly, more than 50 percent of the growth of the portfolio comes from our existing customer base and their references. He reported that the Secretary of Communications and Transports Gerardo Ruiz Esparza, has entrusted them to make Mexico a world-class logistics center, which means having better roads that leads to better ports, that coexist with trains and lead to airports. Marco Medina Zaragoza, FIBRAS analyst of the Bank Ve por Mas, emphasized that the development of industrial buildings in Mexico goes hand in hand with the logistics topic. They have all the necessary elements if new investments arrive. For example, the case of Amazon, that requires certain elements to carry out its operations. I think the FIBRAS have shown their ability to be able to adjust. From site selection, engineering and design to construction, AMISTAD s decades of experience is infused into every project. Our collaborative culture and consistent, reliable track record has built our business. Referrals and repeat business help define our success! To schedule a tour of industrial locations in Mexico, call or us at info@amistadmexico.com. Photo: Colliers International. real estate development Construction logistics amistadmexico.com AMID InteriorAndExterior-9.5cmx24.7cm-vert.indd 1 8/25/16 5:43 PM

17 32 The new role of the airports FINSA Nuevo Laredo. In a context in which airports have changed the scope of its services, beyond their role as centers of connectivity for passengers, companies like Grupo Aeroportuario Centro Norte (OMA) have chosen to turn their air terminals development centers to stimulate and strengthen economic activity in the states where they are located, allowing them to attract various sectors of the economy and integrate into real estate complexes that offer a wide range of services, in this case industrial parks. In an interview, Héctor Cortés, director of Diversification and New Businesses of OMA, reports that a competitive advantage for companies manufacturing of high value is the logistics of land-air communication, used to add value and differentiate industrial parks of the airports of others. In 2012, OMA signed a strategic alliance with VYNM- SA for the construction and operation of OMA-VYNM- SA Aero Industrial Park, the first industrial park within the OMA airports. The adjacency of the OMA-VYNM- SA Aero Industrial Park with the Monterrey International Airport and with the bonded area of the Customs Section of the airport itself favors the logistics activity, air and land cargo as well as other operations of the companies to be installed in this industrial development, mentioned Cortés. He added that currently OMA s airports are under evaluation for the possible development of industrial parks, so that the potential of each destination will be measured. The Aerotech Industrial Park is another industrial space located a few steps from an airport in 140 hectares of land, where there are still about 35 hectares available. We have speculative buildings that accommodate companies that need spaces from 2,700 to 15,000 square meters. We also have the option of building a space tailored The Aerotech Industrial Park is another industrial space located a few steps from an airport in 140 hectares of land, where there are still about 35 hectares available. to the needs of each client and lease, explained in an interview Larisa Sandoval, Sales & Marketing manager of Aerotech Industrial Park, located next to the Intercontinental Airport of Querétaro, in the municipality of Colón. She stated that the Aerotech Industrial Park has achieved to generate success stories thanks to its services. By having two partners specialized in the industrial part, on one hand Abitat Construction Company that provides services in the construction of industrial and commercial spaces; and on the other hand, American Industries, which provides support to manage all business processes, from human resources to logistics service, except production. Larisa Sandoval affirmed that the purchase price is high but is offset with the costs. Besides, she said that rent is a good choice for companies that prefer to initially invest on their equipment s or use the money to improvements in their processes, that does not necessarily have to do with the industrial plant.

18 34 Stories of success AGM Automotive begins expansion in Mexico Stories of success A German in Tlaxcala In October of this year, the plant AGM Automotive, LLC begins operations, in a surface of 5,000 square meters of Aerotech Industrial Park, located in the municipality of Colón, in front of Intercontinental Airport of Querétaro. AGM Automotive in Querétaro 5 million US dollars AGM Automotive will invest in its plant of Aerotech Industrial Park. 80 direct and indirect jobs will be generated in Querétaro 50,000 square meters is the plant area. T he increase of customers and the production of the automotive industry in Mexican land are some of the factors that attracted the Aerotech Industrial Park to investment five million US dollars of the American company AGM Automotive for the development of its plant and additional projects contemplated for the next two years. Regarding the decision to establish in the Aerotech Industrial Park this was motivated by a detailed study of all available parks and for the commitment of the owners of this industrial park to provide an excellent construction service, as well as the development of a competitive industrial park with the best infrastructure of worldwide quality. And in this sense, our experience has been excellent, said James Stanley, country general manager of AGM Automotive, LLC. He revealed that the expansion in Mexico has been considered by Ralf Leist, chief operations officer of AGM Automotive. He has a very clear global strategy that requires the opening of two more industrial plants in Querétaro for other lines of product during the next year. Likewise he commented that, his investment in Querétaro was not subject to incentives, they plan to approach the State Government to determine some incentives already managed by other companies, this in order to maintain global level competitiveness of its plant. James Stanley informed that AGM Automotive gave its first steps in Querétaro in November 2015 with the preparation and installation of machinery and equipment; however, it was since January of this year when we began to hire staff to train them in order to produce for its customers starting August AGM Automotive, manufacturer of electronic components and LED lighting systems for the automotive market will be in the Aerotech Industrial Park with seven other tenants: Brose, Magna, Nachi, Certus, Belcorp, WireMasters and Airbus Helicopters. It is worth mentioning that, Grupo American Industries, Abitat Constructora and the local company Impulsora Queretana form the strategic alliance that in September of 2012 opened the multisectorial Aerotech Industrial Park of 140 hectares. The automotive industry in Mexico will have a significant growth in the next five years as a result of the new installation of major assemblers in the Bajío zone and in the center of the country. John R. Capobianco Mucci, executive and operations director of Kathrein Mobilcom Mexico. A little over a year -April of being inaugurated the plant of the German Company Kathrein Mobilcom Mexico in the Industrial City of Xicoténcatl I (CIX) in Tetla de la Solidaridad, Tlaxcala, has generated 300 jobs. In the next two years, a very important part of our business, dedicated to the production and assembly of antennas for the automotive sector, will be developing as part of our operation, whereby, it is contemplated to expand our investment and provide greater job opportunities and growth, declared John R. Capobianco Mucci, executive and operations director of Kathrein Mobilcom Mexico. Among the factors that motivated the German company to invest around 26 million euros in CIX, stands out the support of the State Government, as well as the personalized attention received since its first approach to the entity. Another important factor was the follow-up that has been given to the development of the project, the incentives, competitive advantages and the relationship between both authorities and with government agencies and educational institutions involved, which together have supported us in the consolidation and success of our project in Mexico, pointed out Capobianco Mucci. He also expressed that the industrial parks in Mexico have all the necessary resources, considerable installation costs and labour; excellent location in the geographical map that provides access to the most important markets and, above all, quality and dedication to their workforce, which I think, are important aspects to the success of any project. He concluded saying that, the rise and consolidation of the automotive sector and other industries in Mexico will become topics of influence for the decision of companies interested in locating their operations in this country. 35

19 36 Stories of success The story of success of Bombardier in Mexico began in 2006, when the company decided to expand its manufacturing global mark. After evaluating different countries, they finally decided to settle in Mexican lands, in Industrial Park El Marqués in Querétaro. Canadian presence 1,600 employees generated in Querétaro. 500 million dollars invested in Mexico. 5% growth in aerospace industry in Mexico expected by Mexican Federation of Aeroespace Industries (FEMIA). Bombardier in Querétaro I ts macroeconomic indicators, its infrastructure, industrial experience, trained human resources, its same time zone as corporate offices in Bombardier Canada, as well as North American Free Trade Agreement (NAFTA), are some of the reasons that motivated the Canadian company to settle in Mexico in 2006, revealed in interview Pilar Abaroa Álvarez, head of communications and senior spokesperson of Bombardier Aerostructures and Engineering Services Mexico. Likewise, she said that they choose the State of Querétaro, located in the north part of Mexico City, because it offers industrial quality, education, infrastructure, trained population and politics of economic development, as well as a great commitment of authorities with aerospace industry development. These considerations motivated us to settle in Industrial Park El Marqués and subsequently in Querétaro s Aerospace Park. Although for now Bombardier has no expansion plans to other States of the country, its spokesperson declared that all entities in which aerospace industry is developing, as Baja California, Sonora y Chihuahua, to mention a few, provide comparative advantages for the settlement of any company of the sector. Also, Abaroa Álvarez agreed that the industrial drive in Mexico is what has encouraged the investment of companies as Bombardier in industrial parks. In our case, within our new industrial plants in Querétaro we led, design, manufacture, assemble and machine major metallic structures and of composite material, as well as electric harnesses for the different aircrafts that form our product portfolio. In that way, we carry on a great number of activities that allows us to improve our internal processes, generating efficiencies that benefit all the productive chain and therefore, our final products, commented Pilar Abaroa. She added that the continuous growth of Mexican aerospace industry is one of the reasons why new companies could invest in the country and choose to settle in industrial parks. Likewise, in 2020 Mexico could occupy the tenth position of the ranking of countries that are part of the sector. In this regard, we consider that it exist a great potential for the installation of more international companies, as well as for the growth of local providers, which benefits of this boost, by positioning as providers Tier 2 and Tier 3. Since our arrival in 2006 we have maintained a continuous commitment with aerospace industry development in Mexico that today is reflected in the strengthening of this important sector. Pilar Abaroa Álvarez, head of communications and senior spokesperson of Bombardier Aerostructures and Engineering Services Mexico.

20 38 Photo: Industrial Development Trust of Aguascalientes. Government t r u s t s a t T r a c t investors The foreign companies that have turned to Mexico to settle in any of its industrial zones not only have the option to approach to private developers but also to government trusts created in the 70s with the purpose of generating territorial reserves where industrial plants and industrial warehouses have been constructed according to plans, projects, work programs and specifications proposed by the settlor. A lthough emerged in the 70s, nowadays government trusts continue to promote foreign direct investment to its parks, industrial plants and industrial warehouses, at a juncture where it offers investors certainty in land ownership in the feasibility of the basic services, in operating permits and in the quality of buildings and internal infrastructure as well as a nearby location to principal trade routes, educational centers and suppliers in the production chain. In an interview, spokesmen of four government trusts expose what are the competitive advantages and facilities they offered to investors to establish in industrial parks located in Aguascalientes, Estado de Mexico, Michoacán and Tlaxcala.

21 40 Pro-Environment Industrial Zones In Aguascalientes In 2015, revenues from the sale of industrial land in Aguascalientes reached 25.7 million pesos. This amount is the result of the commercialization of lots in industrial parks Chichimeco, Logistics, Automotive and Tecnopolo I, according to the Fifth Report of Governor Carlos Lozano de la Torre. The sale of industrial land in Aguascalientes has occurred in a context where the value of the manufacturing production in the entity increased 11.7 percent between January and July 2015, generating more than 103 billion pesos during this period. It was in 1975 when the government of the State of Aguascalientes created the Industrial Development Trust, with the aim to promote parks and industrial zones which benefit the environment, to boost investment and contribute to job generation. In an interview, Eduardo Vilatobá Chapa, general director of Industrial Development Trust of Aguascalientes, declared that since the creation of this Trust industrial development has raised, creating industrial parks one after another. The first one that was created was Industrial City and with the sale of the lands in the late 70s, that money was recovered and the parks that we now know in Aguascalientes have been created. It is worth mentioning that the industrial parks of the Trust are locat- ed in the area of Industrial Corridor, in the municipalities of Aguascalientes, Jesús María, San Francisco de Los Romo, El Llano and Calvillo. He explained that the State Government develops nonprofit industrial parks, in fact all we do is get the land, to the urbanization of what is required and sell the land at a price without profit, so to speak, to be able to be in the most competitive prices, which stimulates the establishment of companies in industrial parks of the Trust. Eduardo Vilatobá Chapa said that companies settled in industrial parks have grown thanks to the investment of the Renault-Nissan and Daimler alliance, that in September 2015 began the construction of the complex Cooperation Manufacturing Plant Aguascalientes (COMPAS), which in 2017 and 2018 will see the birth of Premium compact vehicles of Mercedes Benz and Infiniti brands. For the general director of the Industrial Development Trust Aguascalientes is the best option to invest in Mexico, the proof is the vast amount of foreign, national and local companies that have been established here and have success. Photo: FIPAIM. Photo: Industrial Development Trust of Aguascalientes.

22 42 Industrial City of Xicoténcatl Given the expectation that the installation of automotive AUDI assembly plant in Puebla has generated, providing auto parts companies have identified the potential of Tlaxcala State for the installation of their businesses in industrial parks of the Trust of the Industrial City of Xicoténcatl (FIDECIX) which manages three Industrial Cities: Industrial City Xicoténcatl I, in Tetla; Xicoténcatl II Industrial City in Huamantla; and Xicoténcatl III Industrial City in Tlaxco. Bernardo Segura Sánchez, general manager of the FIDECIX commented that the importance of Government Trusts lies in the fact that they are formed by a group of skilled people in the administration and in dealing with different institutions of the three levels of the Government, which speeds up procedures and permits required by entrepreneurs. You have a single contact which is the Trust to whom you expose your needs, who together with the Ministry of Economy and Development is in charge of making arrangements so fidepar.edomex.gob.mx Photo: FIPAIM. that requirements made by corporations and entrepreneurs are answered faster. He also affirmed that given the advantages of infrastructure and services in industrial cities, as well as the strategic location of Tlaxcala, its connectivity, the experience of the workforce and facilities and the support that the Government provides, the domestic and foreign investors have considered enabling to invest here, consequently, automotive supplier companies such as LEAR Corporation, CEBI, Grupo Antolin, Clerprem, Knipping Automotive, among others, have been settled making a positive impact on employment creation. The FIDECIX is part of the Mexican Association of Industrial Parks (AMPIP), plus it is certified with the Mexican Industrial Standard for Parks and with the Environmental Quality Standard, issued by the Federal Attorney for Environmental Protection (PROFEPA) and it is in the process of obtaining the New Scheme for Certified Companies (NEEC). We are 135 kilometers far from Mexico City and that opens up a wide scene of possibilities, we have brought some companies from Chalco and Iztapalapa because logistics was difficult for them to handle, from here, they handle the entire distribution network faster and in a more reliable way, since the road network and logistics opens an extraordinary scene to companies, added Bernardo Segura Sánchez. Photo: FIPAIM. FIDEPAR upgrade logistics sector Jones Lang LaSalle and Coldwell Banker s studies reveal that the Metropolitan Area of Mexico is one of the regions with the highest growth potential in industrial parks with logistics vocation. From Tlalnepantla to Huehuetoca, on the border of Estado de Mexico with Hidalgo State, it is where the largest number of industrial parks linked to the logistics field is concentrated. In Estado de Mexico, the automotive, chemicalpharmaceutical and food and beverage sectors have developed logistic s dynamism of the region. As an example, just to mention that to the Industrial Complex Santa Margarita, in Ixtlahuaca, have received investments from India and which are beginning to open new market niches in the downtown area of the country, including the export of chemical-pharmaceutical products. There is now a mature market in terms of large processing companies. We have developed in the automotive sector suppliers, Tier 1, Tier 2 and Tier 3, and this supplier chain is very consolidated today the sector in the downtown area and has enabled specifically in the Valley of Toluca to have an installed capacity of skilled labor, emphasized in an interview Víctor Hugo Colorado Reyes, general director of FIDEPAR. Precisely, to boost industrial growth through construction, purchase and sale of

23 44 own industrial developments or through strategic alliances with private investors, the Trust for the Development of Parks and Industrial Zones (FIDE- PAR) in Estado de Mexico was created in 1982, that currently commercializes industrial parks Jilotepec and Santa Bárbara. Also, in alliance with the Artha Capital Fund develops the Arco 57 logistics platform project in Estado de Mexico which covers about 717 hectares distributed in two polygons: North-San Augustine and South-San Francisco. Also, plans to develop new industrial parks in the municipalities of Nezahualcóyotl, Chimalhuacán, Nicolás Romero and Texcoco. They are smaller projects, of approximately 10 hectares, industrial plants of 800 meters for smaller companies that require distribution of peripheral areas into selling point, declared Víctor Hugo Reyes Colorado. It is worth mentioning that FIDEPAR is also part of AMPIP, works with two development models, one focused on real estate developers and the other one focuses on final customer that demands industrial buildings on lease. TRUSTS 106 hectares covering the Automotive Logistics Park, newly created industrial park in Aguascalientes, close to the airport. 3 industrial cities constitute Trust of the Industrial City of Xicoténcatl. 717 hectares covers Arco 57 project developed between FIDEPAR and Artha Capital Fund hectares covers the Small and Medium Industry Park in the municipality of Lázaro Cárdenas, Michoacán. Michoacán: new center of industrial development The State of Michoacán is not only known for its already famous Lázaro Cárdenas Port, but it is also distinguished for its 1,242 kilometers of railways, 13,000 kilometers of road network, four airports, prestigious universities and business opportunities in sectors such as agroindustrial, information technologies, metal-mechanical and supplier. Also, it is emerging as a state with logistics potential thanks to its strategic location and its connectivity with multimodal corridor NASCO, a transportation network of 2,500 miles that join Mexico, the United States and Canada and connects more than 71 million people and intertwines countless companies. Michoacán also has a structured network of industrial parks that are located inside the Industrial Logistics Corridor of Michoacán, which has access to key markets of Mexico, the southeastern United States and Asia. Through Trust of Industrial Parks of Michoacán (FIPAIM) the State Government has provided infrastructure to industrial parks and has made acquisitions of land reserves for development of sustainable urban areas, agro-industrial parks, of logistics and operation services, as well as centers of technological and research development. In an interview, César Erwin Sánchez Coria, general director of FIPAIM, revealed that as an incentive to investment, prices of industrial parks heritage of Michoacán are subsidized by the State, which allows to access costs of 70 percent below market. Also, it has a vast land reserve of over 1,866 hectares heritage of the Trust, intended solely for the development of agro-industrial and industrial parks, logistics and operation services, as well as technology and research development centers to enable the economic encouragement and employment generation through different business schemes allowed by the operating rules of this Trust, such as the latest schemes of the new Law of Public Private Partnerships, commented the general director of FIPAIM He noted that, with the designation of Lázaro Cárdenas Port as the first Special Economic Zone the goal is the creation of a new center of industrial development that creates jobs, develop value chains and trigger the demand of local services, fostering an exceptional business environment to attract investments. Photo: Industrial Development Trust of Aguascalientes.

24 46 In recent years, in a context of industrial dynamism linked to the automotive sector, particularly, American, European and Asian investors interested in establishing in Mexico not only demand competitive cities that offer quality of life, education, housing, infrastructure, connectivity, even, sustainability, but also that provide specialized human resources that meet the requirements of the global market. I n Mexico you can find specialized talent in development, design and even, in much more specialized functions of the industry at a very good price and a very good quality, said Joao Nunes, executive director in Michael Page, brand that belongs to the Specialized Recruitment Consulting Firm PageGroup. What we ve seen in recent years is an investment in industrial projects in the automotive sector much more developed at a technologically level, where they see Mexico, not only as a country of manufacture or as a country where it is cheaper to produce, they see it as an engineering country, added Joao Nunes. However, the executive director emphasized that companies should promote technical training in order to strengthen their teams to meet the challenges of the coming years. He revealed that the automotive companies that are coming to Mexico are those that have done a good job of market research, as they have achieved to identify clearly what are the opportunities and the challenges in the field of specialized human resources. The vast majority is already starting to hire and we at Page Group today are supporting major projects in the automotive industry in the search for talent.

25 48 The executive director in Michael Page declared that engineers currently in Mexico earn 20 percent more than in other Latin American countries. But why is it interesting to come to Mexico if today it costs me 20 percent more an engineer here than in any other country? The issue is that there is much more engineering offer in Mexico, this 20 percent more than in Latin America is still 30 or 40 percent less than in Europe and 10 or 15 percent less than in the United States. That means that Mexico is still extremely competitive not only for the price as such, but for the quality that comes with the investment in the recruitment of this resources type. In an interview, Rémy de Cazalet, senior general director of PageGroup Mexico and Central America, noted that at his office in Monterrey, Nuevo León, which opened three years ago, they have registered a growth of one hundred percent, which means that the number of foreign investors has increased, especially because they Rémy de Cazalet Senior general director of PageGroup Mexico and Central America (left) Joao Nunes Executive director in Michael Page (right) have understood the importance of the Mexico s location and the opportunity that Mexican market could offer them through their workers. The dynamism of foreign investors is such, that our office in Monterrey today is the most profitable in Latin America. Over the past two years in Saltillo, Coahuila, and Monterrey, Nuevo León, a very important development is being seen, there are a plenty of promoters of local industrial parks that are increasingly specializing to be able to receive these foreign investors, commented Rémy de Cazalet. In this context, the Senior Director of PageGroup Mexico indicated that one of the key challenges for the industry is that more mexican workers speak English. I think that is an area of opportunity that is being heavily worked on in recent years. When a foreign investor arrives in Mexico, he needs that its directors can go to the US or Europe to be trained, and this requires to speak English. In Mexico there is an area of opportunity with talent that is increasingly professionalized. I think we have to keep working to accompany this ongoing growth. Rémy de Cazalet, senior general director of PageGroup Mexico and Central America. Professionals from the classrooms Regarding the development of specialized human resources in the classrooms, Manuel Molano, deputy director at the Mexican Institute for Competitiveness (IMCO), indicated in an interview that it is important to keep the universities connected to the cutting-edge knowledge relevant for the aeronautical and automotive industries. José Sergio Ledesma Martinez, president of the Federation of Colleges and Professional Associations of the State of Querétaro (FECAPEQ) stated that although today there are no schools for all industries, they are working to create them, so that professionals covering strategic areas such as food and beverage, automotive, appliance and aerospace can be indentified. He declared in an interview that through FECAPEQ schools related to strategic sectors of the economy are focusing on continuously updating, combined with the work of each school to let the industry know about what are the areas of expertise that distinguish them and how they reinforce them. Almost all schools have a continuous professional education standard that involves identifying and sharing knowledge, experience with all colleagues. With universities we would be looking at those bases precisely to establish the need to constantly review the plans and programs of study. For Manuel Molano it is important to get rid of the stereotypical idea that the mexican worker is useless. You have to ask automotive companies where their best talent is and probably much of their best talent will be in Mexican plants. Labor productivity in these industries I believe it has remained constant and in many cases has grown. Photographer: Roger Méndez.

26 50 From North to Bajío Senior director of PageGroup Mexico and Central America said that northern and central Mexico are prepared for the arrival of U.S., European and Asian investors, who come to establish their new factories and industries. If we go to the border we can found industrial parks they are increasingly proposing facilities at very competitive prices, with talent and synergies with the companies. The advantage proposed by the north of the country is that it can receive many investors, but also suggest the expansion of land to those who are already present. What Mexico offers are huge spaces where they are providing all kinds of services around these industrial parks. At an educational level, even not only new universities that will give talent but international schools that will receive the children of foreign workers, admitted Rémy de Cazalet. He also stated that from PageGroup they can see that a need for talent is an area of opportunity in Mexico, where some regions have specialized more than others in specific sectors, for example automotive in the Bajío and Puebla; and manufacturing industry in the north. In the border parts of the country there are advantages that a company can offer to its Mexican employees by giving the opportunity to study or live in the U.S., that attracts a lot of talent. He mentioned that the cost is one of the competitive factors that have encouraged the installation of foreign companies in northern Mexico. Every time we have more customers in Page Group who choose Mexican border for many factors, but I think nowadays, we have the possibility of giving talent similar to U.S. but more competitive at cost level. So, many North American manufacturing companies are moving their production gradually on this side of the border, things that 10 or 15 years ago did not make for lack of knowledge or perhaps for lack of preparation of Mexican talent, today it is no longer a pretext. The deputy director at the IMCO reported there are cases of success in States such as Querétaro, Aguascalientes, Guanajuato and San Luis Potosí who have understood the business of industrial parks, as they have connected them to the cities and have developed a diversified industry that has begun to demand qualified personnel. MANUEL MOLANO Deputy director at the IMCO If a place makes sense is because the politics is good, because the human capital that arrives there is good, because the legal system works, because the city has good quality of life, and so on. In the case of the States of the Bajío, Governments as Aguascalientes, Querétaro and Guanajuato have their cleardarks on public security issues, but in general they have done it quite well. Bajío States were not in the picture to be that achieving, before the signing of NAFTA they were Mexican, ultra-catholic, agrarian, traditionalist societies, where it did not seem to be any comparative advantage to be industrial and look what have happened. This proves that if you improve institutions, development is possible, concluded Manuel Molano. Photographer: Roger Méndez TUBERÍA INDUSTRIAL DE PEXA RAUPEX DE REHAU - Tubería de PEXa grado industrial, para aire comprimido, agua helada y agua caliente - Pared interior lisa - Flexibilidad - Operación silenciosa - Ventajas hidráulicas: mayor velocidad sin generar ruido - La protección UV provee una excelente resistencia a la radiación solar - Método de unión mecánico y electro soldable - Diámetros de 20 a 160 mm (IS) y de 3/8 a 2 (IP) - Rango de temperatura de-50 C a +95 C - Soporta presiones de hasta C (trabajo constante) - Disponible en varios colores para identificación rápida en sitio Celaya 01 (461) Monterrey (81) Panamá (507) informes@rehau.com

27 52 S. PARQUES INDUSTRIALES REFORMA z Lunes 26 de Septiembre del 2016