ProLogis Releases New Research Report on Mexico's Foreign-Owned Manufacturing Plants and Warehouses
- Report Analyzes Mexico's Export-Led Growth Strategy and Recent Economic Success Related to its Export Market -
DENVER, July 17 /PRNewswire-FirstCall/ -- ProLogis (NYSE: PLD), the world's largest owner, manager and developer of distribution facilities, today released a new research report entitled, "Mexico's Maquiladoras - Climbing the Ladder of Success."
The report discusses Mexico's long-standing reliance on an export-led growth strategy and the key role that maquiladoras, foreign-owned manufacturing plants, have played in the execution of this strategy. Historically, Mexico has been an attractive location for foreign manufacturing and warehouse operations because of its low-cost labor, proximity to the United States, large pool of university-trained engineers, ironclad protection of intellectual property rights, various tax incentives and time-zone commonalities for companies based in North America.
During the past 15 years, the maquiladoras' role has been re-defined several times -- first, when the North American Free Trade Agreement (NAFTA) took effect in 1994; later, when China joined the World Trade Organization (WTO) in 2001; and later still, when Mexico enacted major tax reforms in 2007.
"Much has changed since the early 1960's, when Mexico first became a popular location for satellite manufacturing facilities," said Leonard Sahling, first vice president of research for ProLogis. "The country has become skilled at adapting to new challenges and maintaining a strong export market. With recent boosts in funding and subsequent investments in infrastructure, education and safety, Mexico is well positioned to continue to improve its competitiveness amongst the world's major manufacturing markets."
In recent years, with lower-cost manufacturers emerging in other countries and minimizing its global competitiveness, Mexico's maquiladoras have succeeded in sidestepping potential threats to its export market by moving up the value-added ladder and producing more customized, higher-priced goods. New high-value industries have emerged in the country and are thriving, including aerospace, custom-order electronics and pharmaceuticals.
Looking ahead, the report predicts Mexico's maquiladoras will continue to fuel the country's economic growth, citing recent tax and fiscal reforms passed in 2007 that will help to generate increased tax revenues. "Mexico is taking the correct steps not only to stay in the game, but to improve its ranking among the world's economies," Sahling added.
ProLogis' Global Research Department monitors, analyzes and reports on key trends and dynamics in both real estate and supply-chain management, drawing from industry data and primary research conducted by company analysts and a network of affiliated academics and other professionals. Past reports have focused on global supply chain dynamics, internet retailing, RFID technology, offshore outsourcing and other related topics.
For a copy of the report on Mexico's maquiladoras, or other reports, please click on the following link: http://www.prologisresearch.com/mexicomaquiladoras.
ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 121 markets across North America, Europe and Asia. The company has $38.8 billion of assets owned, managed and under development, comprising 526.3 million square feet (48.9 million square meters) in 2,817 properties as of March 31, 2008. ProLogis' customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. Headquartered in Denver, Colorado, ProLogis employs over 1,500 people worldwide. For additional information about the company, go to http://www.prologis.com.
Released July 17, 2008