1. By Xavier Hurtado
Industrial Real Estate Facilitator
facilitator@AmericanIndustriesGroup.com
www.IndustrialRealEstateInMexico.com
7 Steps to find
Cost-Effective

2. About American Industries Group
American Industries Group is a private
Mexican company that has helped
over 200 global companies to
successfully establish and run
manufacturing operations throughout
Mexico since 1976 through Site
Selection, Administrative “Shelter”
services and Industrial Real Estate.

3. Our Locations & Score Card
Shelter & Start-up Services Real Estate
• 50 Customers.
• Over 8,500 Customer’s headcount
• Over 30,000 trouble-free import
and export transactions per year.
• We built a 12 M Sq. Ft. Portfolio.
• Full Mexican Market Coverage
• 9 Industrial Parks
• 90 Buildings
• 89 Customers

4. What we’ll cover today:
• 10 Reasons to Manufacture in Mexico
• 7 elements to consider to find Industrial Real Estate in Mexico
• Get assistance to find your industrial facility in Mexico

5. 10 Reasons to Manufacture
in Mexico
1. Immediate access to the US market.
2. Immediate re-manufacturing turnaround.
3. Skilled, available and affordable labor: up to 80% in
savings
4. Technical training support: Schools, R&D and training
centers.
5. Quality culture: ISO, AS, NADCAP.
6. Solid Manufacturing Clusters & Supply Chains: more than
3,000 foreign companies doing business in Mexico.
7. Tariffs savings: free Trade Agreements with 44 countries
8. Legal certainty for Intellectual Property
9. Tax incentives: No VAT and NO Income Tax under the
Shelter Programs.
10.Developed “Soft-landing” culture to help manufacturers
start up operations in Mexico in a fast-track, risk-free
shelter programs.

6. 7 elements to consider to Find Industrial Real Estate in
Mexico
1. Determine your facility requirements:
external conditions
2. Determine your facility requirements:
internal conditions for your operation
3. Find your best location triad: customers,
suppliers & labor
4. Determine whether you want to be In or
out of Industrial Parks
5. Determine whether you go to an Existing
facility or built-to-suit
6. Determine the ownership strategy
7. Get a site selection study

7. Step 1: Determine your own facilities requirements: external conditions
1. Will you require access to railroads or other logistics features?
2. What infrastructure will you require as far as energy (KVAs),
water and gas now and in the future?
3. What are the weather (temperature, rainfall & humidity)
conditions you require for your facilities and operation?
4. What seismic activity will you be willing to tolerate for your
operation?
5. What are the soil conditions that you require for your
operations (weight to support)?
6. What are your green building requirements and expectations
(skylights, water treatment, solar panels, wind mills)?
7. What are the types of waste that you will be releasing?

8. Step 2: Determine your own facilities requirements: internal conditions
1. What height will you require in your building?
2. Will you use a mezzanine to optimize space?
3. How many and what type of docking systems will you
require, if any?
4. What type of communications infrastructure will you
require?
5. Will you require clean rooms?
6. Will you require special meeting or processing
rooms?
7. Would you be willing to share part of your facilities
like cafeteria, hallways, parking and infirmary rooms?

9. Step 3: Find your Location triad: customers, suppliers & labor
1. Where are your customers in Mexico or where
are they planning to be?
2. Is there a solid supply base to run your
operation (logistics, packaging, waste
management, administrative services)?
3. Is the labor cost competitive?
4. Is the labor force with the right skill-set and
availability for your operation there?
5. How are productivity, quality and turnover
indicators from other operations in the region?
6. Are there technical training centers in the
region to support your processes?
7. Do the established companies in the region
have quality certifications and competitive
productivity standards?

10. Step 4: Determine whether you want to be In or out of Industrial Parks
1. Would you want to have easy access to
utilities and infrastructure?
2. Would you like to share expenses on
security gates and waste management?
3. Would you like to have local labor
transportation routes already in place for
your plant?
4. Would you like to have certainty on the use
of land permits and ownership titles?
Those are some of the advantages of locating
within an industrial park.
However, there are some companies that prefer
to go to other zones and reduce their
turnover rates.

11. Step 5: Determine whether you go to an Existing facility or built-to-suit
1. Advantages of existing facilities
• Immediate start up: you could
start up in less than 9 weeks
2. Advantages of build-to-suit projects
• You could have your facility as you
need it depending on your process
• You could plan growth and build
expansions in the long term
without having to relocate

12. Step 6: Determine whether you will lease vs. own
One of the major advantages of leasing
is the amount of financial resources
you have to assign upfront to your new
project in Mexico
Why should you lease?
• Less upfront investment
• Less legal paperwork to process
and less red tape
• Legal certainty of use of land
before authorities

13. Step 7: Get a site selection study
Once you have determined your real estate strategy with
the previous elements, you are ready to get a tailored
Site Selection Study:
 Available facilities and land reserves for build-to-suit
projects in the regions that meet your needs
 A due diligence study of targeted properties
Comparison studies of the total cost of operation in
different regions
 A property management established program to keep
guarantees
 A step-by-step guide to start your manufacturing
operation

14. Will YOU Be Our Next Success Story?
At American Industries Group we are on a Mission:
To help Manufacturers to increase their PROFITABILITY by establishing
operations in Mexico in the most cost effective location.

15. Get assistance to find your
industrial facility
What you’ll get:
• A committed partner to help you find the best location in Mexico
• Confidential Site Selection Assistance
• We’ll help you find the industrial facility you need where you need it or we’ll
help you get it built-to-suit your specifications
• A total cost per hour estimate depending on the following criteria:
– Number of employees
– Size of your real estate facility
– Cross-border transportation
– Overhead
• A cost model simulation comparing different regions
• Support to organize a business agenda in key manufacturing hubs
• Sign up now to get your free site selection analysis at:
http://Find.IndustrialRealEstateInMexico.com

16. Get assistance to find your industrial facility in
Mexico:
http://Find.IndustrialRealEstateInMexico.com
By Xavier Hurtado
Industrial Real Estate Facilitator
facilitator@AmericanIndustriesGroup.com
www.IndustrialRealEstateInMexico.com