75.9 F
Puerto Vallarta

Nearshoring, Tech Hub Act Fuel Jalisco’s Economic Growth

Guadalajara, Jalisco, Mexico – The State of Jalisco is making significant strides in attracting foreign companies due to nearshoring and the Jalisco Tech Hub Act, with the goal of capturing 20-30% of the more than 400 expected foreign companies relocating to Mexico.

Roberto Arechederra, the head of the Department of Economic Development (Sedeco), explained that Jalisco’s infrastructure and its 8.6 million-strong population make it an ideal location for these companies compared to smaller, fully employed states.

In the first nine months of 2023, Jalisco successfully secured 24 investment projects, with an additional 17 projects currently in the works, out of a total of 83 projects that Sedeco has been tracking this year. Arechederra anticipates that the most substantial announcements will materialize in the last quarter of the year. While he couldn’t disclose the company names yet, he revealed that they expect to announce “six or seven companies with significant investments” in the coming months.

Of the 24 investments made earlier this year, seven were in the Information Technology (IT) sector, seven in the electronics industry, five in food and beverages, and two in the automotive sector. Additionally, the agro-industry, chemical, and distribution centers each attracted one investment project.

Arechederra stated that 10 of these projects represent new businesses entering the state, while 14 are expansions. The focus is on assisting existing companies by identifying suitable suppliers and facilitating their relocation efforts.

Regarding Foreign Direct Investment (FDI), Jalisco experienced substantial growth in 2022, attracting $2.977 billion USD, marking a 39% increase compared to 2021. This influx also resulted in the creation of 21,515 new jobs. Looking forward, based on the projects in the pipeline and the interest expressed by foreign companies, Jalisco aims to surpass $3 billion in FDI for 2023. By the end of the first half of this year, the state had already attracted $1.39 billion in foreign capital.

The majority of this FDI was directed towards manufacturing industries, totaling $891.7 million, followed by financial services at $281.7 million, accommodation and food services at $116 million, construction at $47.9 million, and commerce at $46.6 million.

The leading countries contributing foreign capital to Jalisco included the United Kingdom at $574 million, the United States at $407.1 million, Spain at $222.9 million, Germany at $124.1 million, and the Netherlands at $61.1 million.

In total, Jalisco has secured over $10.212 billion US dollars in Foreign Direct Investment during this administration.

With reports from El Economista.

- Advertisment -

Most Popular

MXN - Mexican Peso