Building Trust with Investors

While some businesses in Mexico are wringing their hands over the peso’s decline, foreign companies interested in establishing operations here have more impetus to give the rate a thumbs-up, according to industrial real estate services firm American Industries.

“Our clients’ expenses are managed in pesos and often, their income is tied to the US dollar,” says Alejandro Lara, Director General of American Industries. “Consequently many have seen their profit margins increase and their capital expenditure requirements decrease due to the peso devaluation. This climate makes the case for Mexico as a business destination much more compelling.”

Lara says his company promotes the diffusion of information about what it is like to manufacture in Mexico, including the costs and challenges as well as the benefits reaped by establishing facilities here. “We offer support in terms of site selection and organize forums and seminars to educate potential clients about each location,” he says. “Building a sense of trust with potential investors allows us to continue attracting a growing client base. Our former and existing clients are the best source of reference for new customers.”

American Industries is one of the few companies that complement real estate with a shelter program and vice versa. This has helped to considerably strengthen the firm’s market position, says Lara. “Our goal is to be as flexible as possible and offer in-depth customization options. As we turn 40, we are now one of the longest- lasting players in the market and that experience has led to a robust system and work practices that support our clients. We are ISO certified, complemented by a solid IT platform and an expert team of personnel, which allows us to differentiate our company as a quality service provider.”

The firm serves over 200 companies in Mexico and has a portfolio of over 13 million square feet. It has developed nine industrial parks here.

As new markets are attracted to the company’s services, Lara says the greatest challenge will be maintaining the

same high standards. This, of course, is homogenous across all companies that are branching into other segments. “To date, half our clients require inventory facilities, while the other half request build-to-suit infrastructure,” he says. “With a presence in Queretaro, San Luis Potosi, Guanajuato and Jalisco, we believe that we are well placed to serve any company entering the Bajio region. We also continue to operate in our traditional markets near the US border, so there is no immediate need to expand our portfolio.”

If needed, though, American Industries has extensive land reserves and the necessary human and capital resources to expand rapidly, Lara says.