The economy of state of Guanajuato is the 6th largest in Mexico
In the manufacturing sector alone, the economy of the state of Guanajuato generates an approximate total of US $4.8 million dollars in salaries for the 150,000 direct labor workers that it employs.
“Guanajuato is a great example, many do not know it, but Guanajuato generates nothing more in salaries, every day 4.8 million dollars are paid in payroll, to manufacturing employees, be it in automotive, food processing, or the textile industry.” This is according to figures provided by the national president of the Maquiladora Industry Association (Index), Luis Manuel Hernández.
Of the 6 thousand nationwide members of Index, 400 are located in Guanajuato. Of this total, production facilities in the automotive industry, food processing, and textile sectors are predominant. These combined with other productive entities together serve to maintain a prominent ranking nationwide of the economy of the state of Guanajuato.
Luis Manuel Hernández confirmed that Guanajuato is an example to follow in the consolidation of industries and as an area of opportunity. The key to the state’s success is its ability to adapt its environment to the needs of the various industry and to increase the influx of productive investment.
The president of Index also commented that job growth expectations for Mexico’s maquiladora and export manufacturing industry could increase by 10 percent or more over last year’s numbers in the maquiladora and export manufacturing industry. This is a result of increased international demand for goods that are being felt as the effects of the global coronavirus pandemic subside.
The 10 percent growth in employment in Mexico’s manufacturing sector is mainly due to the awakening of the United States market. Since the United States is projected to grow at a rate of between 6 to 10 percent. With this increase in jobs, it expected that more suppliers will start manufacturing in Mexico. Although 57 percent of the maquiladora industry produced goods are exported, it is projected that during this year that number will increase to 60%
The economy of the state of Guanajuato is a diamond in the rough
Despite the fact that Guanajuato has worked diligently to consolidate its industrial base and attract significant investment from medium and large-sized foreign companies, it is still a diamond in the rough that can accommodate additional economic growth. According to the president of Index, the economy of the state of Guanajuato still has considerable available capacity to further increase productive investments in its robust industrial sector.
One of the successful strategic moves that the state government of Guanajuato has made is to invest in its educational system. According to Hernández the quality and quantity of engineering talent that has been developed in recent years by the entity’s academic institutions gives the Guanajuato an edge over states with which it competes for foreign direct investment.
Although the economy of the state of Guanajuato has already consolidated its national leadership in industries such as automotive, leather footwear, textiles, and agroindustry, it is important that investment in these sectors continue. This will serve to further strengthen the growth of the state, in addition to further promoting the education and employment of young people in those same sectors.
Union issues have to be seen from a business point of view
Given the issues that have arisen at the General Motors (GM) company Silao, Guanajuato plant regarding the collective bargaining agreement between employees and the union, Index’s president, Luis Manuel Hernández, recently observed that today the union’s relationship with its members must be seen from a commercial perspective. Today, it is of paramount importance that employer-employee relations comply with the sections of the USMCA that pertain to labor.
The president of Index commented further that United States trade negotiators and government commercial officials are and have been very clear that the production value chain cannot be subject to the doubts that these types of conflict generate. Labor unrest has the potential to cast a negative effect upon the economy of the state of Guanajuato. For this reason, the government of the State of Guanajuato has committed itself to maintain an environment that is conducive to the interests of investors as well as the workers that they employ.
Companies that seek to invest in the economy of the State of Guanajuato are invited to contact the experts at the Tecma Group of companies.
