The marked industrial activity that it develops on the Mexican border with the United States is due to multiple factors where the sustained progress of the Free Trade Agreement or T-MEC stands out, even in the midst of the energy controversy that has recently arisen.

To this are added the advantages in labor cost and the shorter distances that allow avoiding conflicts that were previously generated by the great distances that supplies and merchandise traveled from Asia, mainly from China.

The main markets in the north, such as Monterrey, Saltillo, Ciudad Juárez, Tijuana, Reynosa and Mexicali, account for 68% of the industrial demand registered at the end of July 2022. If the analysis is carried out between January and July, the percentage of demand from Eight northern markets that Solili monitors reach 58%, which makes them undisputed winners, where we would also include Chihuahua and Tecate.

Check here: Industrial demand in Chihuahua begins to reactivate

Korean, Chinese, Canadian and Japanese companies, to name a few, have already completed site selection and moved part of their production to new locations on American soil, favoring Mexico and specifically its border markets. An example of this are the recent announcements either of the start of work or the inauguration of new plants or expansion of operations already established in the area.

In Saltillo, the companies Yangfeng, Fujikura and Aptiv, together with Lingong Machinery Group, Quanta Computer and Henkel in Monterrey, Samsung in Tijuana or Jabil and Heineken in Chihuahua are examples of press releases that appeared in the last quarter.

In the case of Monterrey, it is where the greatest dynamism is evident, since 40% of the demand registered among the eight markets of the northern border between January and July of this year is concentrated in just one market.

At the end of July 2022, the Nuevo León Ministry of Economy reported that this market has at least 82 confirmed foreign investment projects that will add square meters of industrial spaces.

Of interest: 60% of the national industrial demand corresponds to speculative projects

Both manufacturing and logistics find capacity for growth in their operations that can guarantee both companies and their workers the existence of a complete offer of related uses such as residential, care, commercial and educational.

Saltillo and Ciudad Juárez stand out as two other main markets in the north. Saltillo with the strong presence of suppliers from the automotive sector in a market with 3.32% vacancy.

Ciudad Juárez, for its part, shows a wide presence of various manufacturers where vacancy has reached a minimum level of 0.37% and therefore rental prices continue to rise, closing in July 2022 at $5.65 dollars per square meter per month, which represents an increase of 19% in the last year.

The structural factors that have made it possible to concentrate industrial demand in this region will continue to be present during the remainder of 2022 and 2023, so we can foresee that the interest of foreign firms in Mexico and mainly in entities close to the border with the United States will continue to be sustained.