If there is one characteristic for which Aguascalientes is known, both nationally and internationally, it is its business climate. The World Bank itself, in its yearly report, has ranked us as the best state for doing business in Mexico.
But, where does this performance come from? The state is home to small, medium-sized, and large companies that lead the different sectors to achieve the country’s economic growth.
Aguascalientes’ industrial activity, for example, records a performance three times as big as the national average. This indicator raised 1.6% in 2018, compared to the national average of 0.5%.
The state’s manufacturing industry has been the main feature in this development: it translates to around 80 thousand local workers and is equivalent to almost 15% of the employed population.
Of these jobs, 46% belong to the production of transport equipment sector, 14% to production of communication equipment, 11% to the textile industry, and 8% to the food industry.
In December 2018, these sectors reached a production value worth a little over 900 million dollars, which represents an increase of 36% with respect to the same period in 2017. With this, the “small state of the Bajio region—which includes the states of Aguascalientes, Guanajuato, Querétaro, and San Luis Potosí”— held a participation of 3.3% over the national production.
From Aguascalientes to the World
IMMEX (Manufacturing, Maquiladora, and Exports Services) is a clear demonstration of local companies offering world-class quality products.
Eighty-eight companies reported imports and exports of locally made products at the end of 2018. These companies created around 62,000 jobs for their people, who consider this industry to be the best choice to make a career (average monthly salary plus benefits amount to 18,000 pesos).
In November 2018, IMMEX companies generated revenues of almost 15 billion pesos for the supply of goods and services, of which more than 55% was allocated to foreign markets.
New Sectors on the Radar
While manufacturing—driven mainly by the automotive sector—has been the strongest industry for the state’s economy, Aguascalientes wants to make inroads into new markets to achieve a more comprehensive development.
The Center for Economic Research (CIDE) determined that local industry has the potential to enter new sectors like information technologies, research, supply and logistics, health, chemical and pharmaceutical processes, agribusiness, aeronautics and aerospace.
At present, 15 local companies are receiving training to start operations in the aerospace industry, in a project that has brought together research centers, startup accelerators, and government—through the Department for Economic Development.
An agreement has also been entered into with the Japan International Cooperation Agency (JICA) to strengthen training programs for both local small and local medium-sized enterprises (SMEs) that want to become part of the automotive supply chain.
Moreover, new investments have been made that will bring new cutting-edge projects in Aguascalientes. Examples include the new Central Electronic Plant of Continental, where intelligent devices for autonomous driving will be produced. Tech Mahindra and iTexico, which will develop custom-made software, and Bosch’s expansion to produce braking systems for Tesla.
Aguascalientes follows a new philosophy: Consolidating a competitive, thriving, and diversified industry. The state’s economy has already started to yield results after only two years of laying its foundations.