Silicon Border Industrial Park Lures Mexico Manufacturers
With the U.S. economic picture looking brighter, Mexico Manufacturers in renewable energy are likely to expand their production and presence in the area anecdotally known as the ‘Silicon Border’. CEO, Daniel Hill, leading the company by the same name cites increased infrastructure development and growth in Baja California’s, Mexicali as contributing factors. There are further factors that account for this, according to Hill. First, with processes increasingly automated, “labor costs have become less important”. Second, Hill adds that Mexico’s tax structure and incentives have become extremely competitive, offsetting cheaper Chinese labor and tariffs. Add to that, better Mexican space costs (about $40 per sq meter) at a quarter of Asian prices, higher transportation prices from Asia, and Mexico’s proximity (including speed) to U.S. markets, it becomes easy to see how Mexico manufacturers can rival China’s.
“Infrastructure is very important”, says Vincent Roche, VP property agent for Jones Land LaSalle. “Our (industrial) park is like a sustainable city. It’s designed and built to be eco-friendly (with) Silicon Border situated close to two fossil-fuel-fired power plants…” Add to the readily available power and water, Silicon Border’s closeness to California who is eager to buy solar panels, Q-cells, and wind equipment, and the Mexicali location is ideal. With more than $60 million invested, Jones Lang LaSalle is recruiting companies from Asia, looking to fill their capacity in Baja. Since thousands of wind turbines are expected to be installed in the region, Silicon Border is clearly an “ideal spot” for Mexico manufacturers of wind equipment, as well as other renewable energy production.