Strategy to Attract Foreign Investment and Foster Local Businesses
Teresa Jiménez Esquivel, the governor of Aguascalientes, Mexico, has outlined a strategic approach to navigate the current economic climate and maintain the state’s position as a prime destination for foreign direct investment (FDI). Her plan focuses on local content substitution, productive linking of small and medium enterprises (SMEs) to large corporations, and diversifying the economy.
Addressing New Market Realities
Jiménez Esquivel emphasizes that the new rules of the market imposed by the United States have created challenges, but also opportunities for Aguascalientes. The state aims to replace foreign-made goods with locally produced ones, strengthen productive linkages between SMEs and major companies (especially in the automotive sector), and diversify its economic base.
Productive Linking Initiative
The governor highlights the importance of incorporating more local components in exports to the US to reduce tariffs. This presents an opportunity for Aguascalientes’ SMEs to join the supply chains of large automotive manufacturers, which are key players in the state’s economy.
- The state government has implemented a credit program for SMEs, channeling over 2,000 million pesos in credits in the past year and a half.
- The Program of Providers Development offers training, accompaniment, linkage, financing, certification, and specialization to meet the requirements of large companies, particularly in the automotive sector.
Economic Diversification
In nearly three years of her administration, Jiménez Esquivel has worked on diversifying Aguascalientes’ economy. The agricultural sector, for instance, has capitalized on being a significant dairy region. Egg producers have increased their US sales, and a substantial portion of agricultural production is now sold in the American market.
- The state has invested in irrigation modernization, with a 450 million pesos project for the Pabellón District, the first fully technologically advanced irrigation district in Mexico.
- The wine and table grape subsectors have seen progress, with 25 wineries producing around 200 brands of wine and table grapes.
- The textile sector receives support through the Aguascalientes Financing System.
Investing in Quality Education
Jiménez Esquivel stresses the necessity of maintaining a highly skilled professional offer to remain a leading FDI destination. She prioritizes quality education, noting that Aguascalientes has the second-highest number of universities per capita in Mexico and leads nationally in engineering graduates from the Instituto Tecnológico de Aguascalientes.
- New buildings are being constructed for the institute to train engineers specializing in semiconductors and electromobility.
- Support is provided for new talent formation at the Politécnico University.
Attractive Conditions for Investment
Aguascalientes remains an attractive investment location due to its conditions for wealth generation, including a significant logistics pole with railway access through Kansas and Ferromex, connecting to ports in Manzanillo, Colima, and Lázaro Cárdenas, Michoacán, as well as the US. The international airport of Aguascalientes and cargo terminal, under expansion, along with an inland port and 27 industrial parks, further enhance its appeal.
- The state guarantees access to clean energy and water for investors.
- Through the State Energy Agency, efforts are made to ensure availability of clean energy transmission lines and sub-stations in industrial zones.
Key Questions and Answers
- What is Aguascalientes’ strategy to cope with new market realities? The state focuses on local content substitution, productive linking of SMEs to large corporations, and economic diversification.
- How does Aguascalientes support SMEs in joining supply chains of large companies? The state government offers credit programs and the Program of Providers Development, which includes training, financing, and specialization opportunities.
- What sectors has Aguascalientes been diversifying its economy into? The agricultural sector, irrigation modernization, wine and table grape subsectors, and textiles have seen progress.
- Why is quality education crucial for Aguascalientes’ continued success? Maintaining a highly skilled professional offer is essential to remain an attractive FDI destination.
- What conditions does Aguascalientes offer to ensure its attractiveness for investors? The state guarantees clean energy and water access, has a robust logistics network, and is investing in energy transmission infrastructure.
