Foreign direct investment in Ciudad Juarez is tops for second consecutive year
It is projected that for the second straight year, foreign direct investment in Ciudad Juarez will be greater than that captured by other Mexican cities.
Information provided by Adan Gomez Franco, promotion coordinator for the Chihuaha State Economics Ministry, demonstrates that FDI in Ciudad Juarez in 2014 will top out at seven hundred and fifty million dollars, while investment flows into the State of Chihuahua, as a whole, are projected to reach US $1.4 billion. The economic significance of this influx of foreign capital will be the initiation of more manufacturing activies in the city, resulting in the creation of an estimated thirty thousand direct and 150 indirect labor positions in the Ciudad Juarez.
Although foreign direct investment in Ciudad Juarez is spread out over a number of different industries and manufacturing sectors, it is anticipated that in the next three years the flow of most of the city’s FDI dollars will be concentrated in the establishment of manufacturing operations that are part of the automotive industry, the medical device industry, the renewable energy sector and in the manufacture of home electronic devices. So far this year, however, the Chihuahua state promotion coordinator reports that twenty projects establishing new and expanding existing manufacturing operations have been completed in the city.
Gomez Franco notes that “the economy is growing, and investors are showing confidence that Ciudad Juarez is a place where business can be conducted competitively.” He also reports those looking at the possibility of contributing to the flow of foreign direct investment in Ciudad Juarez, “no longer make inquiries regarding the city’s security situation,” and that “the U.S. State Department has removed travel advisories.”
In terms of growth in foreign direct investment in Ciudad Juarez in other non-manufacturing, but trade related activities, Gomez Franco believes that the initiation of the operation of a multi-modal transportation facility in nearby Santa Teresa, New Mexico by the Union Pacific Railroad with have the effect of opening up more space for investment in transportation and supply chain actitivies in Ciudad Juarez and its environs.
On the state level, Gomez Franco points out that Chihuahua is state in which investors will find the qualified labor that they need to manufacture globally competitive products. He emphasizes the fact that “Chihuahua is a national leader in graduated engineers per capita” among Mexican states.
Read the primary source for this post in its original Spanish at Norte Digital.
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