/
Analysis

The Face Behind Mexico´s Industrial Parks

Tue, 09/01/2015 - 11:36

Since 1999, the Mexican Association of Industrial Parks (AMPIP) has represented the interests of owners, investors, and managers within the national industrial park network. The association offers a platform for these individuals to share best practices, communicate through forums, and overcome the challenges faced by the industry. AMPIP can also facilitate the process for multinational companies looking to begin operations in Mexico, and currently has 56 affiliate members, consisting of private land developers, investment trusts, real estate investment trusts (REITs) and public real estate trusts belonging to state governments. These players control around 250 industrial parks across the country, which constitute a base for approximately 2,500 national and international companies, generating 1.7 million positions of employment. Since 2012, this sector has seen a continual increase due to a greater liquidity, and correspondingly the vacancy rate of industrial parks dropped from almost 10% at the beginning of 2014 to 7.8% in the first quarter of 2015.

According to Mexican guidelines, an industrial park is a delimited area of land that meets three certain specifications. Firstly, the land must have the necessary permissions for the construction of manufacturing plants and distribution centers. Secondly, it must contain urban infrastructure, such as water, electricity and telecommunications facilities.

Finally, it should operate under by-laws and adhere to relevant government legislation, while possessing an administrative facility to oversee security and operations in the area. Although state governments are eager to foster industrial parks to create jobs, their budgets and human infrastructure have not been enough to develop industrial parks within the scope and standards required by multinational companies interested in locating in Mexico, giving AMPIP a significant opportunity to step in.

Currently, AMPIP is working with the Tax Administration Service (SAT) on the New Scheme Certified Company (NEEC) accreditation in order to attract more companies as affiliates, especially from the automotive industry. The NEEC program applies to any company involved with exports and imports and seeks to strengthen the logistics process through the implementation of minimum international security standards for the benefit of its members, which are largely private sector companies. A further proposed benefit of the NEEC scheme, expected to be published next year, would involve tax breaks for those accredited companies. In line with this process, AMPIP has now standardized the policies and security protocols across its affiliated industrial parks, in an effort to make the movement of goods safer and more efficient, as well as attracting further investment from desirable clients.