Mexico is looking great!
News about drug cartels, favelas and violence, seem sexier to the media than great news about business in Latin America. Many people tend to think of México in terms of the violence, pyramids, beaches, tequila and avocado. All of which exist as well as the fact that México is one of the largest automotive and technology producers in the world, in the top 3 to be more precise.
Business Monitor international indicates that Mexico stands out as among the best-positioned markets in Latin America to attract investment and see businesses establish operations over the next several years. Sadly they also stand out as countries with the worst press. Mexico is the the second largest economy in Latin America, 13th largest economy in the world and 11th in purchasing power parity. Around 78 million people make up its labour force.
Recent articles from the New York Times as well as the Financial Times features Mexico:
“Mexico has signed 44 free trade agreements — more than any country in the world — which, according to The Financial Times, is more than twice as many as China and four times more than Brazil. Mexico has also greatly increased the number of engineers and skilled laborers graduating from its schools. Put all that together with massive cheap natural gas finds, and rising wage and transportation costs in China, and it is no surprise that Mexico now is taking manufacturing market share back from Asia and attracting more global investment than ever in autos, aerospace and household goods.
“Today, Mexico exports more manufactured products than the rest of Latin America put together,” The Financial Times reported on Sept. 19, 2012. “Chrysler, for example, is using Mexico as a base to supply some of its Fiat 500s to the Chinese market.” What struck me most here in Monterrey, though, is the number of tech start-ups that are emerging from Mexico’s young population — 50 percent of the country is under 29 — thanks to cheap, open source innovation tools and cloud computing. “
Advertising wise, México is an approximately an 11 billion dollar market which continues to be overwhelmingly TV dominated. There is tremendous growth in areas such as relationship marketing and digital as a result in the growth of a variety of product categories.
So, things are looking good in México…and we are doing great at WPI with our partners Activamente, who themselves are a hub for innovation.