Principio Marketing


MY ARTICLES

IN-DEPTH
ARTICLES

EXPORTING TO MEXICO - QUERETARO REGION

For many companies, exporting means selling to companies in the United States. This option is one of the most interesting for several reasons. But other regions can also offer advantages.

Mexico is a region that is growing in popularity for many businesses. Since the start of NAFTA in 1994, many Canadian companies have discovered this region for several reasons:

  • - Several local businesses take advantage of various programs to bring in seasonal Mexican workers. Some of those businesses will be farms, but not only.
  • - With a population of 129,150,971 in 2020 (estimated), Mexico is the 10th most populous country in the world.
  • - In Canada, we share the same time zone with Mexico. So doing business with Mexico is easier than with Europe or Asia from this point of view.
  • - Mexico is a young country; 84% of the population is under the age of 54 with a median age of 29.3 years.
  • - 81.3% of the population lives in big cities, so they are easily accessible. The three major cities are Mexico City (D.F.), Guadalajara and Monterrey.
  • - The Mexican economy is the 11th largest in the world.
  • - The active labor force is 50.914 million people.
  • - 58.1% of the population is above the poverty line.

 

For complete information on Mexico, visit.

The state of Querétaro is one of the Mexican states worth considering.

Here is some information about this state.

Located about three hours north of Mexico City (D.F.), this state is part of the so-called “Bajio” region which includes part of Aguascalientes, Guanajuato, Querétaro, and part of Jalisco. This region is among the most dynamic, and safe, and offers one of the best qualities of life in Mexico.

Querétaro has an international airport, mainly used for cargo, but more and more airlines are offering connecting flights there, making access to this region increasingly easy (see). In addition, an excellent bus service runs between Mexico City International Airport and Querétaro. So access can be done via a connecting flight to Querétaro or a direct flight to Mexico City. Here are airlines companies offering connecting flights to Querétaro:

  • - United Airlines
  • - American Airlines
  • - AeroMexico
  • - Volaris
  • - Viva Aerobus

 

Here is information from the last census of INEGI ( the statistical organization for Mexico) from 2020. (see):

  • - The total population of the state of Querétaro was 2,368,467.
  • - The unemployment rate is 3.62 (2022).
  • - The average level of education in the Querétaro region is 10.5 years (preparatory or secondary level 4.5 according to the Canadian system) which is higher than the national average which is 9.7 years.

 

Other statistical data:

  • - The cost of living in Querétaro is 49.27% ??lower than in Montreal, excluding rent.
  • - With the rent, the cost becomes 53.14% lower than in Montreal (see).
  • - House prices are also lower; an apartment in the center of Querétaro will be 87.25% less expensive than in Montreal.
  • - Although the Querétaro region is very safe compared to the rest of Mexico, it remains slightly less safe than Montreal. The crime index in Montreal is 30.94 and in Querétaro, it is 36.74. The security index in Montreal is 69.06 vs 63.26 in Querétaro (see).
  • - The health system in Querétaro is excellent. The health system index is 77.51 and that of Montreal is 63.65.
  • - Congestion problems are also less present in Querétaro than in Montreal, but not by much (the traffic index is 161.13 for Montreal and 143.53 for Querétaro) and Montreal has the advantage of a very well-developed public transport system that continues to grow. So traffic problems in Querétaro will only worsen unless a major investment in public transport is made.
  • - Another benefit that goes to Montreal is university tuition. Although Mexico has a public university system, places are limited which makes many turn to the private system. The average cost per year for a private Mexican university is $11,777 compared to $4,939 for Canada. However, if your children manage to enter public school, the Mexican annual fee drops to $527. These figures are from 2018 (see).

 

Important cities in the state of Querétaro are Querétaro, San Juan del Rio, Corregidora, El Marques, Pedro Escobedo and Tequisquiapan. Although agriculture and livestock are two important activities, the industrial sector is also very strong partly because of the presence of Bombardier, Airbus, Aernnova Aerospace, and Latécoère, but also other companies in the automotive sector (Tremec, Dana, Hitachi), other companies in the metallurgical sector partly because of the natural resources of the region, and other companies of the plastics sector.

Due to its geographical location, the industrial parks of the Querétaro region are home to major companies from several industrialized countries such as: Siemens, Purina, Daewoo, Eurocopter, Michelin, Carnation/Nestlé, Magna International, Kimberly Clark, Dow, Eaton, Winpak, Hitachi, Ryder, Safran, Samsung, Schenker, Toyota, TRW, Valeo, and many others (see).

The Mexican government offers a “maquiladora” program called IMMEX for foreign companies that want to do business in Mexico. This program makes it possible to import raw materials and export processed goods at a lower cost as long as the destination of the goods is other than Mexico. It is an interesting program that several companies use. According to INEGI, of the 117,986 manufacturing jobs in 2019, 111,175 were jobs under the IMMEX program. For more information on the IMMEX program, (see).

If you want to know more about this region, do not hesitate to contact me.

Stéphane Elmaleh-Riel, B.Ed., MBA
Marketing consultant