Armando Moreno
Director General
Logistik Parque Industrial
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View from the Top

Adapting to Meet Automotive Demands of SLP

Wed, 11/01/2017 - 16:36

Q: What is Logistik Parque Industrial’s most important goal?

A: We want to create a community of industrial companies inside the park as a way to add value to their operations and to create a trickle-down effect that benefits the communities that surround us. Logistik Parque Industrial is the largest industrial park in Mexico, which makes it versatile when offering spaces to potential customers. We can offer plots of land in various sizes, starting at 1ha, while keeping more than 150ha of terrain in reserve. This enables us to chase business with large assembly plants and Tier 1 and Tier 2 suppliers, and it provides an opportunity for these companies to create synergies in their direct vicinity and to improve their supply chains. The automotive, electronics, agricultural and industrial equipment industries are particularly attracted to these kinds of communities because of the high level of systematization of their production lines.

Q: How did Logistik Parque Industrial evolve from selling land to entering the construction industry?

A: We evolved into a developer to meet the needs of the automotive industry in San Luis Potosi. A few years ago, General Motors needed a space to install its operations and Logistik Parque Industrial provided it. Our company is facing a turning point right now. Our core business is the sale of land, but we are interested in strategic alliances to take advantage of the build-to-suit (BTS) and speculative building models. BTS is optimal for tenants because the location where they install is designed specifically to meet their needs in every way. But building industrial units according to the speculative model enables the developer to consolidate a more varied offer for customers. Speculative building provides more flexibility when negotiating with potential customers. We expect these alliances to increase our ability to cater to our customers’ needs and add value to their operation.

Q: How does Logistik Parque Industrial help new foreign entrants successfully launch their manufacturing operations?

A: Logistik Parque Industrial accompanies them throughout the entry process and helps to minimize or avoid any hurdles that launching operations in a new country entails. Our specialized services division helps companies that lack experience in Mexico to incorporate into the business landscape, to sort out registration and other legal and accounting procedures,
to create a corporate checking account and so on. We want to bring in those companies interested in a well-made facility
and that want to take advantage of the park’s world-class 181 infrastructure. Logistik Parque Industrial admires its clients as many of them are pioneers in their sectors. We expect our clients to contribute to our industrial ecosystem by complying with our emissions regulations and not harming the communities that surround the park.

Q: Why is establishing in San Luis Potosi more attractive than in other regions that have a booming manufacturing sector?

A: First, the city and the state of San Luis Potosi can supply the companies establishing here with qualified and highly specialized labor. Second, government entities at all levels are business-friendly. Finally, Logistik Parque Industrial value proposition is not limited to a great location and available inputs for operation. Our goal is to offer our customers certainty and an opportunity to be part of the increasingly sophisticated industrial ecosystem of San Luis Potosi. In the industrial real estate sector, a retained client represents a 1.5 percent rate of reinvestment in local companies. We want our customers to see a space in Logistik Parque Industrial as a guarantee for prosperity. To this day, there is no better place to be in terms of logistics than in San Luis Potosi and Logistik Parque Industrial specifically.

Q: What are Logistik Parque Industrial’s goals for the short term?

A: We have an ambitious growth plan and we still also have a lot of land in our hands. Logistik Parque Industrial is paying close attention to the renegotiations of NAFTA and will make the most financially suitable decisions to pursue its growth goals plan once that process is over. We will continue leading the industrial real estate sector by catering to the needs of the customers that are installed in the park.