Business opportunities in Tijuana
In several Latin American countries, industrial parks are an urban phenomenon of the 20th century. According to each city’s expansion, the opportunities for this kind of business are defined based on every city’s geography and economy, focusing on the industrial development policies and elements supporting exports.
Specifically for Mexico, industrial parks have been built, encouraged, and promoted, based on two factors: development of industrialization model for import substitution, endorsed by the Latin American and Caribbean Economic Commission (CEPAL), to encourage the growth of industries subsided for its financing.
And the second factor has to do with the economic openness aimed towards globalization of markets and foreign investment, along with new challenges and heavy competition, based on an intensive utilization of the workforce.
Tijuana has over 60 industrial parks, with only 2% of its industrial facilities premises available, because demand is higher than the offer, according to David Mayagoitia, president of Tijuana’s Economic and Industrial Development.
In 2015, Tijuana’s city received an estimate of 658 million dollars of foreign investment from industries like aerospace, automotive, electronics, and medical equipment.
There are 68 million square feet of industrial warehousing in Tijuana; hence, that 2% available is equivalent to around 1.36 million square feet. The demand exists because of new incoming companies, most of them from abroad, and it has to be estimated, taking into consideration that it takes an average of two years to start operations, a process that starts at the very moment when it displays interest for investing in Tijuana.
An industrial park is both an instrument of industrial politics as well as a real estate venture. It is essential to have a thorough knowledge of the market where it will be located. It is not enough to establish an industrial park to start development. There is the need for public investment to provide highways, railway tracks, ports and airports, communication media and information technologies, a solid financial system, and laws that regulate their operations.
Industrial parks construct a wholesome solution to industrial structuring problems; they increase tax collection. Overall, they increase the community’s lifestyle where they settle, which is one of their greatest contributions.
Industries have been delimited within the urban settlements, which is a ruling principle of every modern city. It is not about industries creating cities, but industries having large markets within a large metropolis. They get integrated, and together they grow because of the work offer it generates.
