Queretaro and Guanajuato standout among the most attractive states to invest

The state of Guanajuato settle as the most attractive market of surveyed businessmen in the Bajio area to invest in 2019, said the firm KPMG.

In their report High Direction Perspectives in Mexico 2019, KPMG detailed that 54 % of the companies queried in the Bajio are planning to expand their operations in some State of the Country in the next three years and, with 49 %, Guanajuato was placed as favorite destination of surveyed businessmen in the Bajio.

Followed by Jalisco, with 35 %; San Luis Potosi, with 32 %; Queretaro and Mexico City, with 27 %; and Estado de Mexico and Nuevo Leon, with 24 percent.

“This means, 5 out of 10 businessmen from the Bajio are willing to invest in Guanajuato,” said Ricardo Arellano, Tax leading partner in the Bajio Region, in charge of the Leon office of KPMG.

The objective of the study High Direction Perspectives in Mexico 2019 is to collaborate with the business community to identify and highlight challenges and priorities.  933 directors, councils and business executives participated in this edition nationwide, from which 11 % belong to Bajio (Aguascalientes, Guanajuato, Queretaro and San Luis Potosi.)

It is worth mentioning that among surveyed businessmen nationwide, 33 % chose Queretaro as favorite destination and 28 % Guanajuato.

“The Bajio is a protagonist in country growth and entrepreneurs see this,” he assured.

He explained that the area is attractive due to its qualified workforce, infrastructure, telecommunications and for sectors such as automotive, since together with big companies dedicated to cars manufacturing, all auto-parts suppliers have arrived also.

“Local and foreign investment attraction is important, we would like to continue this trend, therefore it is important to attend services issues, of housing and education to continue attracting investment and wealth; growth generation for the region and the country,” he noted.

Aurelio Hidalgo, Audit partner of KPMG in Mexico, said that another attraction of the area is that 50 % of the Country Gross Domestic Product concentrates on a ratio no larger than 500 kilometers.

“This provides a strength to businessman in the area to get supplies, strategic alliances, infrastructure, among others, this is one of the main attractions.”

BETTING ON TALENT AND CUSTOMERS

Celin Zorrilla, leading partner of Industries and Market of KPMG in Mexico, said that as part of the strategies being implemented by Bajio entrepreneurs to achieve higher competitiveness of its organizations, the survey said that 59 % will develop new products or business lines, 53 % will be focusing on customers, 49 % on promoting innovation, 38 % will develop and retain human talent and 36 % will improve processes and performance.

NATIONAL RESULTS

29 % of High Direction said that they are planning to expand their operations in other countries: the United States (40 %,) Colombia (25 %,) Peru (15 %,) Brazil (14 %) and Spain (13 %.)

Celin Zorrilla, leading partner of Industries and Marketing of KPMG in Mexico, underlined that, for the first time, businessmen consider a European country among the first five investment destination, what can become a trend.

“Renegotiation of the United States, Mexico and Canada Agreement (USMCA) opened the eyes of the business sector to diversify their investment portfolio to other markets outside the United States,” he referred.

He said that some of the main sectors where Mexico’s business is planning to invest are services and consumption.

INVESTMENT PREFERENCES

Businessmen queried by KPMG revealed that they are planning to invest in Queretaro, Guanajuato, Nuevo Leon, Jalisco and Estado de Mexico this year.

OPERATIONS EXPANSION

Bajio businessmen revealed that they are planning to expand operations within the next years:

Source: KPMG

INVESTMENT PERSPECTIVES IN OTHER COUNTRIES

KPMG report said that Mexican entrepreneurs anticipate investing in international markets.