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MAIN INDUSTRIES

• Food, beverage and tobacco
• Textiles
• Logistics and Transportation
• Electronics

MAIN COMPANIES

ADVANTAGES

• Skilled and capable workforce
• Good transportation network
• Well established supplier network
• Close to the main Mexican markets
• Beautiful metropolitan area with all the amenities of a major city

DISADVANTAGES

• Land prices and lease rates are high
• Longer distance to US border increases costs
• High cost of living

Overview

Guadalajara is a major city in transition. It has always been one of the most important cities in Mexico and it continues to be the site of major industrial activity. At the end of the 1990’s it was hailed as the Silicon Valley of Mexico. However, over a period of 5 years many of the computer and electronics companies in Guadalajara left for Asian markets. Nevertheless, Guadalajara is quickly regaining lost ground and is replacing the electronics industry with some of the largest logistics and transportation operations in the country. The area has not attracted a lot of positive attention in the past couple years, but the city will always remain an important trade and commercial center in North America.

The City

POPULATION

The Metropolitan area of Guadalajara has a population of 3,641,847 people, which represents about 56% of the population of the State of Jalisco (6,561,329 people). Guadalajara is the second largest metropolis in Mexico. The metropolitan area includes the following municipalities: Guadalajara, Tlaquepaque, Tonala, and Zapopan.

Guadalajara Metro Area, Population by Municipality:

(Source: INEGI 2002)

Although the official metro area only covers these municipalities, the city continues to expand into the outlying area. When the El Salto municipality is taken into account, the metro area population jumps to over 4 million individuals. While the overall population is growing at an average rate of 1.8%, the rate varies depending on the different regions of the metro area. The municipality of Zapopan, for instance, experienced a 3.49% annual growth during the 1990-2000 period, contrasting with the municipality of Guadalajara that posted a negative rate of -0.02 % during the same period.

LOCATION

Guadalajara, capital of the State of Jalisco, is located in the mid-western part of the Mexican territory. The State of Jalisco borders Aguascalientes, Durango, Nayarit, and Zacatecas to the north, Guanajuato to the east, Michoacan and Colima to the south and the Pacific Ocean to the west.

The Guadalajara metropolitan area has an elevation of 5,085 ft, with annual rainfall just less than 40 inches. The weather in Guadalajara is mild and pleasant during most of the year, with occasional heavy downpours.

PROXIMITY TO KEY CITIES

INDUSTRY SNAPSHOT

Guadalajara is Mexico’s second largest urban area, covering 70.3 sq miles. Formerly known as Mexico´s Silicon Valley, it stands as one of the most attractive cities for foreign investments in Mexico and is the most important market in Mexico’s Occidental region.

Industrial activity in Guadalajara is diversified; some of the products that are produced include food and beverages, textiles, tequila, auto-parts, agricultural products, photographic equipment, electronic appliances and iron and steel products. It is important to highlight that Guadalajara is one of the most important non-border locations for manufacturing in Mexico, hand-in-hand with Monterrey and the cities stretched along the NAFTA Highway.

There are several high technology firms in electronics and communications in the metro area. In fact, Guadalajara produces over 60% of Mexico's entire computer output and has evolved into a main center of distribution for both central and western Mexico. The city also benefits from a highly integrated banking and financial services industry. Even though the city is known internationally for its high tech industry, most of the industrial activity still relates to traditional industries like food, textile, and wood production.

Main Industrial Sectors by Percentage of Total Industrial Activity: Click Here To Register  

The Workforce

DEMOGRAPHICS

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SKILL LEVEL

Guadalajara has a young, educated population that has a 92% literacy rate, on line with the 90.5% national average for Mexico. Its workforce has developed a high level of competency and reputation in several industries including electronics manufacturing, textiles, footwear and apparel. Moreover, Guadalajara has one of the highest skill rankings in Mexico for electronics production as well as for computer manufacturing.

EDUCATION and TRAINING PROGRAMS

The State of Jalisco has a well-developed educational infrastructure. There are 16 colleges and universities as well as several technical institutions. Some of the most recognized institutions located in the Metropolitan Area of Guadalajara include the University of Guadalajara, the Tec of Monterrey, the Autonomous University of Guadalajara and La Salle University.
(Source: SEIJAL, based on the data of the Secretary of Education. SEIJAL 2003)

Both the local government an educational institutions are taking actions to strengthen the high tech cluster in Guadalajara. The Semiconductor Technology Center (CTS), for example, was created to offer design services for the electronic industry. Over 1,000 students obtain computer science and electrical engineering degrees every year.

TURNOVER RATES

Guadalajara benefits from a stable workforce with a low turnover rate Click Here To Register