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 State, Provincial and International Reviews 
Tuesday, November 20 2018
Locating in Latin America - FDI Trends Showing Increased Interest

By Bob Cook, Senior Vice President, Latin America, Site Selection Group

The most successful countries in Latin America have created investment laws that encourage foreign direct investment and have assembled professional teams that can facilitate the establishment of operations inside their borders. As you consider Latin America for potential operations, it is important to conduct in-depth analysis on the labor force, infrastructure and the legal/regulatory environment in each country. You must also assess the risk environment in real time—looking comprehensively at the political environment, and any current or emerging issues that may directly impact the security of your people, facilities and supply chain. Be assured, however, there are a number of places in Latin America that will grade out favorably in all these measures.

The Site Selection Group has facilitated both manufacturing operations and white collar operations (such as BPO and call centers) across the region, particularly in Mexico, Costa Rica and Brazil. To find the right location for our clients, we utilize a mixture of purchased data, open source information and primary research conducted by our team of consultants. Purchased data and open source information is typically used to filter down to a narrow list of potentially desirable cities for a given operation.

Posted by: AT 02:06 pm   |  Permalink   |  Email
Thursday, November 30 2017
​​​​​​​Trade Policy Will Impact Location Decisions

As I have been writing this article, I found myself continually circling back to an issue that is fundamentally impacting site locations for Latin America and the rest of the world—the future of U.S. trade policy.  The reality is that it is somewhat difficult to discuss location trends (particularly as we look forward) because of the general uncertainty about the direction that US trade policy will take. The good news is that the administration and Congressional leadership have backed off protectionist policies such as a blanket 35 percent import tariff for companies that leave the U.S. and establish facilities elsewhere, as well as 20 percent border adjustment tax -- similar to a value added tax (VAT). It also seems clear now that the administration will not follow through on an earlier threat to completely withdraw from NAFTA. 

The results which will emerge from the renegotiation of NAFTA may signal how the rest of Latin America and the world will be impacted. In July, the United States Trade Representative issued an 18-page document, titled “Summary of Objectives for the NAFTA Renegotiation”. The report set forth more than 100 objectives covering 22 different issue areas related to trade, giving us some insight into what the administration seeks to achieve. I have written about this in other articles—but I suspect that issues surrounding “rules of origin” may have the most significant impact on location decisions as we go forward.

Posted by: AT 08:30 am   |  Permalink   |  Email
Tuesday, November 22 2016
Mexico No Longer Competing on Low Cost Labor Alone

By Bob Cook, Site Selection Group

If I were writing an article on Mexican competitiveness 20 years ago, there would be one paragraph each on labor cost and one on its location. That’s it - the article would have concluded right there. Certainly, those two items remain as key competitive factors, but Mexico’s advantages go well beyond those today. With a population in excess of 120 million and national GDP at over $2.1 trillion (USD), Mexico is now the 11th-largest economy in the world, and many signs point to continued forward momentum.

All Manufacturing Signs Trending Positive
Mexico is competing well for jobs and investment from manufacturing companies seeking to serve the North American market. Over the past five years alone, the country has received $86.5 billion in FDI for manufacturing projects—approximately one-third of which has come from the United States. Corporations from around the world have selected Mexico to produce food and beverages, medical devices, smartphones, automobiles and aircraft, just to name a few. 

Posted by: AT 11:07 am   |  Permalink   |  Email
Friday, December 04 2015
The Era of the Warehouse: Why Industrial Real Estate is Winning in Mexico

By Christian Canales, Public Relations and Communications Manager, JLL Mexico

While industrial warehouses don´t have the glamour associated with a prime office tower or a five-star hotel, they play a fundamental role in a company´s logistics – and are the backbone of a country´s economy.

Foreign companies continue to be attracted to the Mexico real estate market, specifically in the Bajio region  (which includes Queretaro, Guanajuato, Aguascalientes, San Luis Potosi, and Guadalajara). This region – particularly attractive to the automotive, aerospace, and food industries – continues to create new industrial parks and buildings. Rents shown in Jones Lang LaSalle's (JLL's) Mexico´s latest report Mexico Industrial Report Q2 2015 for industrial properties located in this area are on average at 3.81 dollars per square meter per month. The 13 percent rate decrease from 4.39 dollars (at the end of 2014) reflects stock in lower priced industrial parks added to this report. 

“Warehouse construction costs are the same in the whole country, but this has to do with the price of the land,” said Gerardo Ramirez Barba, National Director of JLL´s Corporate Industrial Solutions based in Mexico City. “In the Bajio lease prices are found to be lower than in other regions of the country.” 

Posted by: AT 10:19 am   |  Permalink   |  Email
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