In this regard, Javier Llaca , member of the ESCALA Advisory Council, highlighted that northern Mexico will continue to lead the industrial market, while the Bajío diversifies its activity towards new sectors and positions itself as a key logistics center .

“In the Bajío, growth continues to be driven by logistics. Cities such as León, Silao, Puerto Interior, Querétaro and San Luis Potosí are seeing a lot of activity in the logistics sector. The automotive industry, compared to other sectors, is beginning to diminish its role in this region, becoming less dependent on the automotive sector,” Llaca said.

In other regions such as the Valley of Mexico and the center of the country, Llaca highlighted good performance in logistics and light manufacturing.

The firm, which specializes in construction project management, identified nearshoring as a growth driver for next year and 2026, as it continues to be a key force for industrial development in Mexico.

“We think that nearshoring could increase by 25% in the next two years, and probably more by 2026,” said Javier Llaca, who added that this growth is supported by the increase in this phenomenon in the sector. “If we look back at 2024, nearshoring had a 12% share in the gross absorption of the entire industrial sector, but with more activity in expansions than in new companies,” he stressed.

In this sense, the arrival of anchor companies, such as BMW and Volvo , is fundamental in this process, since in addition to building their own ships, these companies attract first-class suppliers. “These automakers usually attract several suppliers who set up shop around them, either within the automaker’s premises or on nearby land,” Llaca said, and estimated that “the advanced technology industry, which is Mexico’s second largest exporter to the United States, will see a significant increase during the year.”

In the third quarter of 2024, Chinese companies’ demand for new industrial space contracted by more than 6% compared to the same period last year, raising concerns among Chinese manufacturers about the protectionist measures planned by Donald Trump , the president-elect of the United States.

On the other hand, companies such as Mercado Libre , Bosch and Lego are investing in developments of high technical complexity and great economic impact. “These companies invest a lot in their buildings: although a logistics building seems ‘just a shell’, Mercado Libre invests between 25 and 30 million dollars in each of its regional distribution centers.”

The industrial trend in Mexico remains strong and with prospects of staying high in the coming years, due to nearshoring . In this context, Silvestre Aguilera , Business Development Director at ESCALA, highlighted the continuity of investments such as those of BMW, Volvo and Toyota , the latter with an outlay of 1.45 billion pesos in Tijuana, Baja California.

The hotel sector is also showing significant growth, especially in destinations such as Los Cabos, Riviera Nayarit, Merida and Cancun, and in the southeast, the infrastructure developed last year, such as the Mayan Train , has been an important catalyst. “Everything that was done in infrastructure for Merida and Cancun helps a lot in this development hub, benefiting both the hotel industry and the industrial trend that is beginning to move towards that region,” said Aguilera.

Accelerated growth also brings challenges, especially in infrastructure. The executive warned that mega developments are putting pressure on essential resources such as energy, water and transportation. Another challenge is the availability of qualified labor, said Aguilera, who said that sustainability is taking a central role in the development of projects.

According to ESCALA, despite the shocks that marked 2024, such as political uncertainty and changes in global economic dynamics, the Mexican industrial sector showed resilience.

“In general terms, the net absorption of space, that is, the difference between what is occupied and what is vacated, will be four to five million square meters (m²) more, a figure lower than in 2023, although gross absorption shows a substantial increase compared to the same year. The year 2024 had less activity than 2023 due to the ‘scares’, but in general it was a good year for the industry,” said Javier Llaca.

According to ESCALA’s analysis, the Bajío continues to represent an opportunity for investors and companies looking for industrial space as a result of the relocation of companies in Mexico, as well as the logistics and industrial sector.

Comment and follow us on X:  @GrupoT21

El cargo Logistics and nearshoring will maintain demand for industrial spaces in the short term apareció primero en T21.

The increase in various digital services, the use of virtual tools, as well as data processing and storage, driven by nearshoring (relocation of production lines), has increased the demand for data centers in Mexico , which is why it is projected to build 73 facilities of this type by 2029, according to estimates by the Mexican Association of Data Centers (MEXDC) .

To do this, several factors must be taken into account and the construction of these centers must be planned, which requires resources such as a large amount of electrical energy, since, currently, data centers in Mexico consume approximately 305 megawatts (MW), while in the next five years, it is estimated that the industry will demand 1,492.7 MW , of which 475.7 MW correspond to projects under construction and 1,017 MW to those announced.

This energy will require an investment of eight thousand 737 million dollars (mdd) in the country , according to the Data Center Market , which in the “Snapshot Report Mexico 2023-2027”, referred that Mexico is the second largest market in Latin America in terms of square meters and energy power of data centers .

The nearshoring phenomenon in the country is one of the factors that has increased the demand for new data centers , most of which are located in the Bajío region, mainly in Querétaro, which concentrates half of the energy destined for data centers in the country, followed by Mexico City and the State of Mexico, which have 23%, according to a statement from the company ESCALA , dedicated to the administration of construction projects.

In addition, data centers are expected to face increased regulation, as there is concern about the impact of the carbon footprint and energy consumption in these facilities.

Given this situation, efficient solutions are being implemented in data centers to be more environmentally friendly, such as liquid cooling systems, hydrogen cells to generate electricity and the use of lithium-ion batteries.

“Based on ESCALA’s experience and project management, we believe it is important to incorporate project management from the start of construction of a data center, which will allow us to take advantage of available space and save costs and time,” said Francisco Tijerina, Business Development Director for ESCALA.

Comment and follow us on X: @GrupoT21

El cargo 73 New Data Centers Planned in Mexico by 2029 Amid High Nearshoring Demand apareció primero en T21.

With a perspective that the effect of nearshoring will last around 20 years , specialists indicated the weaknesses and opportunities in the infrastructure that houses investors coming to the country.

During the panel “The future of industrial parks and the economy: perspectives, challenges and opportunities in the face of nearshoring” Jorge Ávalos, president of the Mexican Association of Private Industrial Parks (AMPIP), pointed out that Mexico is facing an unparalleled opportunity that is It can extend for more than two decades , in which, if this opportunity is taken advantage of, its economy could grow.

“If we are able to take advantage of this phenomenon with the benefits that Mexico offers us, not only because of the proximity to the United States, the workforce, infrastructure, etc.; It may be the most important point of growth,” said Ávalos.

He highlighted that industrial parks are the fundamental pillar for attracting this investment. According to data from the AMPIP, prior to the pandemic in 2019, the space demanded was close to two million m2, while last year it was six million m2 , so the growth expectation will be at levels of 15- 20% in a compound manner, assured the leader of the association.

However, Pedro Valdés, general director of ESCALA , said that investors arrive in Mexico with uncertainty as to whether the country will reach the standard to which they are accustomed in other countries, “the way to check it is with certifications, credentials and technological platforms. ”he added.

One of the challenges that Valdés mentioned is that companies come demanding developers with very aggressive time and cost expectations; as well as more efficient engineering and systems; and certified buildings.

“We see these characteristics as very favorable because this is forcing us to increase the level of project management, above all to make it more efficient. What we must do is invest in technology, in training, adhere to international standards and have certifications in both people and projects,” said Valdés.

In this sense, Jorge Ávalos pointed out that Mexico has basic infrastructure challenges, such as energy, water, telecommunications; as well as security and legal stability .

In this panorama, he highlighted that Mexico has not invested in transmission in recent years, so it is important that it be done, since the installed capacity is there, but transmission requires attention.

On the other hand, he assured that there are 80 million m2 of capacity in Mexico in industrial parks, which could be used to generate clean energy.

“Making modifications to the regulatory framework to go from half a mega watt to one mega watt in an initiative where, through solar energy, we can take advantage of 50% of the roofs of industrial parks,” he said.

He assured that this investment would be around six billion dollars, the private sector, that is, the developers could do it to provide clean energy to their clients.

Comment and follow us on X:  @jenna_GH_ / @GrupoT21

El cargo Mexico and its Challenges with Nearshoring: Industrial Parks as the Pillar of Investments apareció primero en T21.

The Mexican industry is undergoing a significant transformation thanks to the phenomenon of nearshoring (relocation of production lines), which has strengthened the commercial relationship with the United States.

The number of industrial parks in Mexico has grown by 70% , going from 273 in 2019 to 460 at the end of 2023, according to the Mexican Association of Private Industrial Parks (AMPIP) .

Additionally, CBRE ‘s LATAM 2024 Investor Sentiment survey reveals that in Mexico there will be an increase in real estate investments , with a particular emphasis on the manufacturing sector . Monterrey, Mexico City and Tijuana stand out as the main markets for investment.

Likewise, the survey shows that more than 40% of Mexican investors intend to increase their real estate purchases this year, driven by strong demand for manufacturing space.

Similarly, the increase in demand for industrial spaces is also reflected in the construction sector . According to data from the Solili platform , industrial construction in Mexico reached 5.6 million square meters (m2) at the end of 2023 , an increase of 5.7% compared to 2022.

For their part, Monterrey, Mexico City and Saltillo led this growth with increases of 20%, 36% and 24%, respectively. The relocation of companies, especially Asian ones, has been a key factor in this boom, with more than 350 industrial projects started in 2023.

In that sense, Francisco Tijerina, business development director at ESCALA , a company dedicated to construction project management, highlights that the company closed 2023 with 60 new projects, reflecting the positive impact of nearshoring .

“These projects represented an investment of 17 billion pesos and nearly 1.5 million m2 built,” Tijerina said in a press release.

By 2024, Tijerina predicts that the adoption of advanced technologies such as artificial intelligence, drones and modular construction will continue to transform the construction sector, improving efficiency and reducing costs.

Despite growth, the sector faces significant challenges in electricity supply.

An AMPIP study indicates that 91% of industrial parks in Mexico reported failures in energy provision during the last year, affecting key regions such as Mexico City, Nuevo León, Coahuila, Chihuahua, Guanajuato and Jalisco.

This problem is aggravated because the industrial sector consumes 62% of the national electricity.

In response to these challenges, the company Enlight has introduced the “Net Zero Fund”, a $50 million fund to finance the installation of solar panels and energy storage systems on industrial properties throughout Mexico.

In that sense, the implementation of clean and sustainable energy solutions is crucial to guarantee the continued growth and competitiveness of the Mexican industrial sector in the future.

Comment and follow us on X:@GrupoT21

El cargo Nearshoring Spurs Growth of Industrial Parks in Mexico apareció primero en T21.