Mexico Industrial warehouse deliveries increase by 39.5% in the first half of the year

Mexico Industrial warehouse deliveries increase by 39.5% in the first half of the year

Companies such as Toyota, GM, Autozone, Jabil, Hyundai, BMW, Daikin, Mazda, Bosch and Continental are driving the boom.

In the first half of the year, the demand for industrial warehouses reached 1.2 million square meters, for an increase of 39.5 percent annually, driven by investments, expansions and the arrival of car, appliance and electronics manufacturers.

The demand prompted real estate developers of industrial parks to accelerate construction, while major challenges such as the deployment of electric power transmission, infrastructure and labor, put pressure on Mexico in the face of the arrival of more companies.

According to figures from the real estate consultancy CBRE, in Mexico from January to June 2024 there was an increase of more than 30 percent in the commercialization of industrial spaces.

According to the Ministry of Economy, these include investments announced by Toyota in Baja California, General Motors and Jabil in Chihuahua, Autozone and Hyundai in Nuevo León, BMW and Daikin in San Luis Potosí, Mazda and CIE Automotive in Guanajuato, Continental in Jalisco and Bosch in the State of Mexico.

In addition, Tesla's investment project in Nuevo León is still in process, while Chinese automakers such as BYD, Great Wall Motors, Chirey and Zeekr, among others, have announced their intention to bring their production plants to the country, which would encourage the automotive supply chain.

More nearshoring

The manufacturing industry is the big winner of nearshoring, since according to an analysis by the financial firm Monex, it has managed to capture 53 percent of new investment projects in the country during the first half of the year.

The automotive industry can benefit by attracting investments for an amount greater than 36,244 million pesos for the next 2 or 3 years.

Jorge Ávalos, president of the Mexican Association of Private Industrial Parks (AMPIP), estimated that this dynamic will trigger up to 128 industrial parks currently in development and for the next six-year period, for an investment of up to 13 billion dollars.

“The effect of regionalization will occur and this will last for the next 20 years, if we are able to take advantage of this phenomenon for the benefits that Mexico offers us, not only for the proximity, the workforce, the infrastructure, etc. I think that it can be, let's say, within the income statement of our country the most important point of growth,” he assured.