Business opportunities in Mexico in 2016
Mexico has had an amazing growth in the last years. Apart from having a strategic geographic location, the country offers competitive costs to service internacional markets and a young highly-skilled human capital. Nowadays Mexican background has become certainly attractive to foreign investors due to the nation’s openness to global economy and the facilities given to start a business in its territory.
Entrepreneurs only need to wait nine days and six procedures in order to establish a new company and benefit them with the reduction of state taxes and fees. Moreover, foreign investment is supported by the free trade and economic cooperation agreements as NAFTA, Pacific Alliance, and the ones signed with the European Union and Japan. If you really want to expand your market in a short-term period, learn more about the best business opportunities in Mexico in 2016 according to PriceWaterhouseCoopers network.
Aerospace
Nowadays, Mexico appears as the 2nd largest fleet of private aircarft in the world. Over the past seven years, 270 companies of the aerospace sector have been set in the country, 31,000 high-level professionals have been employed, and $7.1 billion dollars have been reached. Although Safran Group is the current leading corporation, manufacturing and assembly areas are available for new small and medium-sized enterprises.
Agribusiness & food
Regarding to the Mexican Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA), the agribusiness and food sector revenue increased 7% in 2013, due to its varied landscapes and the rising domestic demand of basic products. Mexico’s agriculture has had an awesome evolution; however, foreign companies have the opportunity to leverage their technical expertise in farming machinery and irrigation systems.
Automotive
In 2013, automotive industry grew 7% and their exports reached $124,944 billion dollars, the highest level of sales outside of Mexico according to Statistics, Geography and Information National Institute (INEGI)*. Five years of sustained growth are being expected in this sector due to the current domestic and international economic conditions which foster that Mexican labour force is less expensive than in other countries.
Consumer products
An environment of greater wealth and population growth, and the strong development of retail infrastructure, has made that food and transport account for a 40% of household spending, just followed by a 14% of personal insurance. Thanks to the provisions made for the Convention Coalition for Continuous Improvement of Competitive Business Practices since 2009, foreign investors can be certain of having a harmonious coexistence with other companies in Mexico.
Oil & gas
The base of Mexico’s oil resources is one of the largest in America. In 2013, the total production was of 44,530 million barrels and in recent years Petroleos Mexicanos (PEMEX) has invested about $1.8 billion dollars in research activities in the deep-water areas of the Gulf of Mexico. In addition, due to the recent reforms to energetic sector, the country has accepted foreign collaboration to improve the extraction and refinement of this fuel.
Renewal energy
The demand of clean energy, such as wind, solar, nuclear, geothermal and hydropowered one, is expected to increase in 2024; nevertheless, regarding to the Law on Renewable Energy Sources, it has to become 35% of the total production in Mexico before then. In order to achieve this goal, private actors have been allowed to invest in infrastructure for domestic consumption in the country by signing a Power Purchase Agreement with the Federal Electricity Comission (CFE).
Health & Pharmaceutical
Mexico is the 2nd largest pharmaceutical and medical equipment market in Latin America. Nowadays, the business opportunities for foreign investors has grown because the health authorities have opened the access to public market to foreign companies. With the financial support of the National Council for Science and Technology (CONACYT)*, enterprises of pharmaceutical sector can develop more effective medicines which better treat national non-transmissible diseases such as diabetes and obesity.
Infrastructure
According to the National Infrastructure Program of the current government and the Law on Public-Private Partnerships approved in 2012, foreign companies are now allowed to offer infrastructure projects which may be considered relevant in order to boost competitiveness, productivity and socioeconomic development in Mexico. Transport, communications, energy, health, education, security, housing and water are the main areas where new constructions are needed.
Mining
Apart from an investment friendly business environment, Mexico has large reserves of important minerals such as silver, gold, copper, iron and lead. Although mining industry has improved its extraction processes in order to cooperate with environmental care, new technology is required for underground excavations and to find new mineral deposits. If your company is focused on robotics or in satellite search, this sector could represent a great source of profit for you.
Telecommunications
Mobile phone market penetration in Mexico reached 88% in 2013 and a 92% is expected by 2017. The current Law on Telecommunications authorizes foreign investment at 100% in mobile communications in order to foster more competition among providers and to achieve as soon as possible the universal internet access in the country. In Mexico City, the Metropolitan Converged Network, which is based on optical fiber technology, will help to boost wireless access points.
In addition to its biodiversity and cultural wealth, Mexico has a strong legal framework to be acknowledged as an emerging economic power. The cooperation of public and private initiative is essential in order to succeed in a competitive global market. As the government has understood this, it is making big changes which will benefit local and foreign investors. Visit our country and discover yourself all available business opportunities.
*Websites only in Spanish.
