Manufacturing companies from the US, China, and all over the world are establishing business operations in Durango, Mexico in increasing numbers. This newly discovered city is now being revealed as Mexico’s best kept secret.

Economic Climate in Durango, Mexico

One of the largest states in Mexico (approximately the size of the US state of Mississippi), Durango is located in the northern region of the state, strategically positioned between the country’s vibrant economic hubs in Mexico City and along the US border. This positioning offers businesses access to the best Mexico has to offer as a manufacturing-for-export destination of choice.

Once limited to primarily agriculture and mining, Durango’s economy has blossomed into a vibrant and diversified place of commerce since the ratification of NAFTA in the early 1990s. There are now literally hundreds of manufacturing and assembly facilities (maquiladoras) located throughout the state, but principally in the region of the capital city, Durango.

Notable industries investing in Durango include:

  • Automotive parts
  • Textiles
  • Electronics

A few of the most notable companies investing heavily in manufacturing operations in Durango include:

  • Wal-Mart
  • Sam’s Club
  • Delphi
  • Honda

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Manufacturing Assets in Durango, Mexico

In 2015, Durango, Mexico received approximately $176 million in foreign direct investment (FDI), the large majority of which was in the manufacturing sector. To address the question of what is drawing in this level of foreign investment, let us consider various assets the state of Durango has to offer foreign manufacturers who establish operations in the region.

  • Skilled Labor
    Durango annually produces approximately 1500 graduates in engineering, construction, and manufacturing. The state boasts approximately 60 institutions of higher learning. In 2015, there were approximately 200 academic researchers employed in the state, advancing technology and scientific information, primarily in the biotech, agronomy, and medical fields. Interestingly, labor costs for this well-educated labor pool (about 150,000 workers strong) typically run less than the already-low national average.
  • Infrastructure
    Mexico has invested heavily into improving the nation’s infrastructure in recent years, and Durango is no exception. In addition to an international airport, the state also has approximately 1,200 kilometers of railway.

Durango, Mexico offers international investors a history of stability, a highly skilled labor pool, and some of the lowest corporate costs in Mexico. Its strategic positioning affords manufacturers easy access to markets in North America, Europe, and Asia. Additionally, the state is located in Mexico’s most dynamic region as part of the largest industrial corridor in North America. And Durango, Mexico is currently developing even more ambitious investment programs focusing on infrastructure and communications in the years to come.