Manufacturing in Queretaro: A Guide to Key Facts and Resources
June 24, 2019
Once solely a hub for agriculture, Queretaro, Mexico is now a region poised for manufacturing growth – but what makes the area so attractive, and where can you learn more about establishing operations in the region?
Queretaro, Mexico: A Region Poised for Growth
In recent years, manufacturers have flocked to Mexico to produce everything from automobiles to medical devices due to the country’s low labor costs, location close to the U.S. and Canada, and its well-established trade infrastructure. As the nation’s manufacturing industries continue to flourish, companies have come to explore once overlooked regions that offer opportunity, including interior regions such as Queretaro.
Historically known for its agriculture industry, Queretaro is one of the country’s quickly growing manufacturing hubs, offering untapped potential for companies looking to take advantage of Mexico’s benefits in an up-and-coming region. Understanding key facts about the area’s location, industry prospects, and labor force are a starting point in gaining insight into what makes the region so attractive.
The state’s namesake capital, Queretaro is centrally located in Mexico and covers approximately 4,500 square miles across the Mesa Central. In contrast to many manufacturing locales in Mexico, Queretaro is an interior city in an interior state in Mexico – which offers the city a distinct advantage compared to border cities and cities in the interior of border states (to understand the differences, you can learn more here).
Despite the region’s geographically small stature and population of only 2 million people, a staggering 45 million are accessible within a 350-kilometer radius. Easy connections to Mexico City and Monterrey, as well as Mission, Texas on the U.S. border, make the region extremely appealing locale given its reach. Additionally, strong infrastructure including a customs accessible international airport, quick access to seaports in the Gulf, and international rail service make serving both domestic and international markets uniquely advantageous.
The Aerospace Effect: Tapping Into A Booming Industry Cluster
Queretaro is a growing hub for many industries, including automotive, appliances, food processing, and plastics – but the main standout continues to be the aerospace industry. In fact, the region rose to aerospace prominence with the entrance of major manufacturers Bombardier, Airbus, and Safran.
Since 2005, Queretaro’s aerospace cluster has exploded. Beginning with only 2 organizations, the popularity and productivity of aerospace manufacturing in the region had driven expansion to include 34 companies by 2013. Then in 2015, over USD $1 Billion was invested in Queretaro by foreign firms; in fact, foreign direct investment in aerospace is higher in Queretaro than in any other Mexican state. Local growth in this sector actually outpaces the national average, at 15% compared to only 10% countrywide.
The success of any manufacturing operation is dependent on its labor force, and in Queretaro, access highly educated, cost-advantageous workers is another of the region’s unique benefits.
Skill and education are highly prized in Queretaro, and are one of the region’s top priorities in terms of investment and focus. As stated by the Director of Investment Promotion for the state of Queretaro, a major goal is to have the highest percentage of educated citizens in the nation.
This priority is evident in the region’s educational system, which showcases more than 2,000 education facilities, 115 high schools, and 22 universities and technical trade schools. For example, Students of the Universidad Aeronautica de Queretaro (UNAQ), are a reliable source of engineers and technicians from major aerospace manufacturers Bombardier, Delta, and Aeromexico.
Beyond education, Queretaro’s geographic location as an interior city in an interior state is again a benefit – in contrast to its border maquiladora counterparts, the region experiences far less turnover. This increases the stability of the workforce, and allows companies to further invest in employee development to create a stronger sense of community and attachment that drives improved work performance.
Additional Resources for Manufacturing in Queretaro
Tetakawi offers several resources for determining if Queretaro’s attractive features make it an ideal location for your business:
Download the full ebook, Everything You Need to Know About Manufacturing in Queretaro, for more information and insight on important trends, including:
Key demographic information and outlook for the region
Understanding Queretaro’s transportation infrastructure and reach
Economic growth in the region and what to expect for future growth
Manufacturing and materials sourcing and Queretaro’s unique benefits
Contact information on where to learn more about establishing operations in the area
Contact us to talk to an expert and get your questions answered. We offer an array of support and advisory services that will help you navigate the region’s benefits and opportunities.
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