| Queretaro Industrial Profile |
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MAIN INDUSTRIES
MAIN COMPANIES
ADVANTAGES
DISADVANTAGES
Overview Located in the center of Mexico, Queretaro is an ideal place for industrial facilities that supply assembled products to other industrial complexes in the area. It is also an excellent place for facilities producing high value per unit items with high labor content. The city is host to over half of the industrial plants in the state and has a well-developed infrastructure of goods and services, suitable for medium and large-scale manufacturing. The City POPULATION The city of Queretaro has a population of 877,837 people, which represents 56.8% of the total population of the State of Queretaro. The city is growing at a 2.78% annual rate, much faster than the 1.8% national growth rate. It is important to note that 75% of Mexico’s population resides within a 300 mile radius of Queretaro. LOCATION Queretaro, located in central Mexico, is the capital of the state with the same name. The state shares borders with San Luis Potosi to the north, Hidalgo to the east, Guanajuato to the west and with the State of Mexico and Michoacan to the south. Queretaro is one of Mexico’s key transportation hubs, sitting at equal distances from Monterrey, Guadalajara and Mexico City. It is also located between the two coasts with good access to the international ports of Manzanillo and Tampico on the Pacific and Atlantic Ocean respectively. The city’s main industrial area sits directly on the NAFTA highway, 9 hours away from Laredo and 2 hours from downtown Mexico City. Queretaro sits at 5,970 feet and has an average annual precipitation of 19.5 inches. The city climate is hot and dry with occasional afternoon showers in the summer, and pleasant and mild during the winter. PROXIMITY TO KEY CITIES
INDUSTRY SNAPSHOT Queretaro’s location along the main NAFTA corridor has produced increased industry diversification and strong economic growth. Its industrial and economical activity, which originally developed in the agricultural and livestock sectors in the mid 70’s, is now surpassed by the manufacturing and trade activities. The leading manufacturing activities are focused on the food processing (diary products, canned fruit and vegetables), chemical (fertilizers), metal mechanic and auto parts, and electrical and electronics industries. Most of the export manufacturing companies in Queretaro have foreign capital and enjoy from high investments in technology. It is important to note that the metal mechanic and auto parts industries account for 66% of all industrial activity in the city in terms of both value added and employment. Queretaro’s proximity to Mexico City coupled with an excellent road network facilitates the relocation of export manufacturing companies from the congested Mexico City metropolitan area. The Workforce DEMOGRAPHICS LABOR AND EMPLOYMENT The Operation WAGE RATES
Wages are the key driver of Mexico’s manufacturing industry. It is, therefore, one of the first and most important topics any company expanding in Mexico will consider. TeamNAFTA touches on the overall wage issues in our Info Center, but we have also provided some sample wages for Queretaro below. While we have access to more detailed wage information, we typically present that information in a tailored report addressing a company’s specific labor needs.
(Source: Area industry wage studies and interviews with local managers, $11.00 pesos/USD) INDUSTRIAL COSTS dollar @ 11 pesos/USD
*CFE.-June 2004, ** Pemex.-June 2004,*** Comision Nacional del Agua.-June 2004 INDUSTRIAL REAL ESTATE There are 17 industrial parks in Queretaro, most of which are located in the industrial zone sitting on the NAFTA highway. These parks offer all services necessary for manufacturing including water, electricity, natural gas and fiber optic telephone services. Most land sites for new construction already have these utilities to the lot. AVAILABLE SPACE A current survey of industrial parks with a variety of site options reveals the following average prices in U.S. dollars per sq. ft.
Exchange Rate $11.00 pesos/dollar TRANSPORTATION The highway infrastructure of the State of Queretaro has 1,939 miles of highways. The quality of the road network in Queretaro is higher than the national average, taking various characteristics into account such as quality of the asphalt, sign posting, road shoulders and technical specifications. Queretaro is easily accessible from central Mexico. The city connects with Federal Highway 57 which gives access to both San Luis Potosi and the northern part of the country as well as Mexico City and southern Mexico. To the West, Federal Highway 45 links the city with Celaya, Irapuato and western Mexico. Given its central location, Queretaro provides with access to two important NAFTA corridors.
The city has excellent access to the U.S. East and Gulf coasts via ship transport through Tampico and Altamira on the Gulf of Mexico. Regular rail service is provided to Miami, New Orleans and Houston from Altamira. The Queretaro international airport offers scheduled domestic and international flights and freight service provided through Aerocalifornia, Aerolitoral, Aeromar and Mexicana to several US and Mexican destinations. INCENTIVES The government offers incentives in relation to payroll taxes, training programs, and assistance in the procedures for meeting requirements at three levels of government (federal, state, and municipal). Additional incentives can be negotiated depending on the location of the new project, type of manufacturing activity and job creation. The incentives include: infrastructure works, fees with the State Public Registry and construction permits. STATE OF QUERETARO INCENTIVES
(Source: BANCOMEXT) The SupportSUPPORT SERVICE COMPANIES Queretaro’s small size constricts its support capacities. Manufacturing support in the city continues to grow, but companies still face challenges finding local suppliers as there is not a large industrial market. Many firms use suppliers and support service from Mexico City. Professional services in accounting, legal services, customs brokerage, construction, environmental and real estate brokerage are available in the city. The PoliticsUNIONS Although unionized labor is prevalent in Mexico, labor unions have not been an impediment to business growth. Queretaro has an excellent management-worker relationship. There have only been 6 days of labor strikes in Queretaro in the last 5 years. The state government assists companies experiencing labor problems through its local arbitration board. POLITICAL INFLUENCES Queretaro is ruled by the conservative PAN party, which traditionally supports business interests. The governor, Mr. Francisco Garrido Patron, is a businessman turned politician. His administration’s goal is to foster sustainable economic development in the state. He is also focused in the development of cultural and educational matters. OTHER COMPANIES IN QUERETARO
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