Industrial corridor: what it is and why it’s important
Industrial production has not only overcome the effects of the pandemic but has also awakened the enthusiasm of developers and investors who have resumed their plans for acquiring and managing industrial spaces1 in the country.
So what is an industrial corridor, and how can settling in these areas benefits various industries?
What is an industrial corridor?
Industrial corridors are large spaces that provide the necessary conditions for national and international companies in specific industrial sectors to carry out their operations efficiently.
How does it benefit business activity?
The production of companies in industrial corridors is often destined for export, allowing them to take advantage of the tariff exception regime that applies in these areas.
Depending on the merchandise and region of production, further tariff exceptions are available. This helps foreign companies settle in national territory without significant difficulties. In addition, other benefits such as private security, access to services for industrial activity (water, natural gas and electricity), infrastructure and communication connections to foreign trade routes within the country also encourage industrial growth.
Another significant advantage of locating in industrial corridors is companies can more easily find suppliers, partners and buyers. They can keep abreast of industry trends and potentially have greater access to new markets.
Locally, industrial corridors are an important source of employment. For example, in July 2021, Monterrey, Nuevo León — known as one of the most industrial cities in the country — generated an estimated 16,173 jobs. The manufacturing sector was a key source of economic recovery following the 2020 crisis.
Current status of industrial corridors in Mexico
The following is a review of the predominant industrial corridors in the country, their activity by sector, and the current situation, based on the Solili 1Q 2021 National Industrial Real Estate Report.2
1. El Bajío
El Bajio includes the states of Queretaro, Guanajuato, Aguascalientes and San Luis Potosi. This corridor is best known for its automotive production, accounting for 19% of industrial buildings nationwide.
2. Valle de México
The metropolitan area of the Valle de Mexico includes the capital of the country and 60 surrounding municipalities. It is also considered the logistics hub of the country.
One notable area, CTT (Cuautitlán, Tultitlan, and Tepotzotlan), is a hub of industrial space transactions, with Toluca and Tlalnepantla also having a similar sector concentration.
3. Corredor Norte
Because of its prime location on the northern border, this corridor is one of the most important manufacturing production zones in the country. The major toll manufacturing companies are located in the states of Baja California, Nuevo Leon, Tamaulipas, Coahuila and Durango. These companies play an essential role in production chains for the construction, mining, automotive and aerospace industries.
In fact, according to the Monthly Manufacturing Industry Survey (MMIS), those industries contributed more than 560,000 million pesos3 to the state economies of Tamaulipas, Nuevo Leon, and Coahuila in just the first quarter of 2021.
4. Interoceanic corridor
Although the Mexican Southeast is best known for extracting and processing hydrocarbons, it is also growing as a food producer, making it a new area of interest for many industrial projects.
Recently, the Interoceanic Corridor of the Isthmus of Tehuantepec was listed within the Special Economic Zones (SEZ), conferring tax benefits such as VAT and ISR tax reductions, and paving the way for future industrial parks.
At Advance Real Estate, our goal is to provide Mexican and foreign companies with industrial spaces in locations that fit their business needs. Get in touch with us and boost the growth of your company.
