What to expect from industrial demand in 2022?
Solili | January 04, 2022 |

2022 will be another year of opportunities for the Mexican industrial sector that has managed to exceed the demand levels of previous periods, led by manufacturing and logistics activity throughout the Mexican territory.

2020 was a complex year because the most rigid measures were taken to prevent the spread of infections, including closures of non-essential activities in March and April.

Already in 2021 the situation for the industrial sector improved and consumption habits that had mutated towards a demand for products and services based on a wide range of options and immediacy in delivery continued to advance in this way.

In the first half of 2021, Mexico saw a growth that almost tripled purchases in this type of channel with a record figure of 192% in spending on applications related to e-commerce such as Amazon, Mercado Libre, Privalia, eBay, Shein and Liverpool, compared to the same period in 2020, according to El Economista.

The main demands for this type of space were concentrated in Ciudad de México and in some other markets such as Monterrey, Guadalajara y Tijuana, where 55% of the demand for industrial buildings is grouped nationwide, between January and November 2021.

Check here: The most outstanding industrial transactions of 2021

These levels of demand for industrial buildings that also include manufacturing activity were supported by the relocation of multiple production processes favored by T-Mec and the important advantages that Mexico exhibits due to its competence in costs and high degree of development of its major industries.

Developing local suppliers was the key that allowed major industries such as aerospace, automotive, chemical, electrical and electronics, to reduce their dependence on Asian suppliers.

Thus, already close to the start of 2022, we could anticipate that demand will continue to grow at the national level, boosting previously emerging markets where in 2021 we saw a broad competition generated, such as the case of Tijuana, Ciudad Juárez, Saltillo and Querétaro

In these entities, as in Mexico City, where there is a low availability of land with infrastructure, this will be a relevant task for 2022, given a scenario of adjustment in vacancy rates and inflation levels forecast for the new year, This will be a differentiating element for developers who compete in the main cities of the country.

Therefore, the inclusion of robotics in the management of logistics warehouses and the functionalities of multiple technological solutions that support deliveries and returns will take urban logistics to the next level of immediacy and service with a greater number of satisfied customers.

The private sector through multiple startup initiatives at the service of the industry and the public sector regulating activities will bring new dynamics that will demand a continuous evolution of logistics processes.

At the same time, the manufacturing processes will continue to have a determining presence in industrial demand, with the development of the cities of the northern border as we saw in 2021, where they concentrate almost 60% of the national demand.

Manufacturing will still have to deal with the adjustments in supply chains and the shortage of certain inputs for the manufacturing industry amid the rising cost of transport worldwide and therefore areas such as the Bajío have given important signs of boost in demand and interest in expanding operations of companies that already knew the area and its virtues.

Of interest: Competitiveness of cities correlated with industrial demand

The appearance of new variants of the Covid and their speed of spread are still a significant risk for the recovery of regional economies, especially those more linked to the domestic market, such as the center, and which present a significant share of the tertiary activities in regional GDP, as indicated by the Bank of Mexico in its recent Regional Economies Report.

Undoubtedly, the rebound in the United States economy is a key factor driving industrial demand on Mexican soil, as the installation of new production plants, as well as distribution and marketing centers in the country, is expected.

2022 will bring multiple opportunities for the country's main investors and developers who have demonstrated resilience and adaptation to the circumstances that surround us, thus strengthening the competitiveness and profitability of their industrial portfolios.

Stay up to date with the most important news to the real estate

Subscribe Solili Newsletter

  
Advertisinginfo