Hidalgo
From The Report: Mexico 2018
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With a rich mining history, an unrivalled location both for exporters and companies serving the domestic market, and escaping relatively unscathed from the drug-trafficking violence that afflicts other parts of Mexico, Hidalgo has the tools to flourish, despite being one of the less developed states in the country. Hidalgo’s current government has looked to accelerate efforts to attract investment since taking office, launching a package of reforms designed to ensure that being next door to one of the world’s largest consumer markets is an asset for the state and its people. With plenty more investment in the pipeline, the task now facing Hidalgo’s government is to ensure that the benefits are felt across the state’s broader economy and remain localised. This chapter includes interviews with Omar Fayad Meneses, Governor of Hidalgo; José Luis Romo Cruz, Secretary of Economic Development, State of Hidalgo; Elías Massri Sasson, CEO, Giant Motors; and Mauricio Leyva Arboleda, CEO, Grupo Modelo.
Articles from this Chapter
On the map: Improved conditions for investment attract attention
Investment destination: Work under way to make the most of an advantageous locationOBGplus
Centrally located and right next door to the large consumer market that is Mexico City, Hidalgo is ideally placed to benefit from its access to key markets across the country, as well as the ports that open access to markets around the world. National development preceded unevenly over recent decades, however, and the state has slipped into the shadow of its wealthier and more developed neighbours. To reverse this trend, the current authorities are working to shine a light on the natural and logistical…
Power play: Sector reforms and renewables projects energise the economyOBGplus
With its existing power plants and related infrastructure and scope for further development, energy has been named as one of four strategic sectors identified by the Secretariat of Economic Development (Secretaría de Desarrollo Económico, SEDECO) as a focus for the economic development of Hidalgo. The thermoelectric plant in Tula and the hydroelectric station in Zimapán help rank the state as the fifth-largest energy producer in Mexico. Add in an impressive gas pipeline network, the closest refinery…
A safe path: Omar Fayad Meneses, Governor of Hidalgo, on foreign investment and coordinated efforts to improve infrastructure and securityOBGplus
Interview :Omar Fayad Meneses How could regulatory reforms make Hidalgo more attractive to foreign investors? OMAR FAYAD: The improvements that can be made in this regard are numerous, and Hidalgo has already embarked upon the path of regulatory reform. We are planning a wide-ranging constitutional and legal reform that will ultimately create a comprehensive new set of laws and, more importantly, modern state legislation. These measures will help to attract investment by removing obsolete…
On the move: Strong transport connections offer potential for the development of logistics businessesOBGplus
With its central location complemented by strong transport connections that link the state both to the large consumer market of Mexico City next door and destinations further afield – including ports that provide access to imports and exports – it is no wonder that Hidalgo is promoting its transport links as a key incentive for businesses looking for a Mexican base to set up shop. Strong Connections Most obviously, there is Hidalgo’s inherent strategic geographical location, lying in the…
Future goals: José Luis Romo Cruz, Secretary of Economic Development, State of Hidalgo, on the importance of a strategy for long-term prosperityOBGplus
Interview :José Luis Romo Cruz How would you describe the government’s longterm economic priorities? JOSÉ LUIS ROMO: Even with a diversified plan to attract investment, our priority is to generate a system that organically fosters growth by creating synergies between all companies: local and international, new and old. If investments that arrive are isolated, there will be no multiplier effect, which is crucial to wider economic growth. In terms of labour, our problem is the reverse of…
Hop to: Large-scale investments showcase development potentialOBGplus
In November 2017 Grupo Modelo – part of global brewing giant AB InBev and Mexico’s largest beer maker – announced plans for its eighth brewery. The proposed project, to be developed in the municipality of Apan, is by far the biggest private investment ever to be made in Hidalgo, at MXN14bn ($756.6m). As the second-biggest producer of barley in Mexico, with plentiful water, and located next door to the largest consumer market in Latin America and with easy access to ports, Hidalgo was the ideal…
At your service: Rising uptake of higher education provides a ready workforce for new businessesOBGplus
Indicators suggest that Hidalgo’s education system has been sharply improving for several years. The percentage of 19 to 25 year olds in Hidalgo who are in, or have completed, higher education has risen from 5% in 1995 to 33% in 2015. But much of this investment in education often leaks out of the state because economic activity has not grown at the same rate as higher education coverage. This has created “an important imbalance between the number of university graduates and the productive sector’s…
Industrial drive: Elías Massri Sasson, CEO, Giant Motors, on the state’s industrial legacy and the future of electric carsOBGplus
Interview :Elías Massri Sasson What makes Hidalgo attractive to investors? ELÍAS MASSRI: It is often forgotten that Hidalgo has a long-standing industrial heritage, stretching from mining to heavy manufacturing. This makes it an attractive place due to its established and well-developed supply chains. Beyond that, compared to other states, its abundance of essential utilities such as water and electricity are of great value to a variety of manufacturing firms looking for a base in Mexico.…
Cure-all: Investment in chemicals and pharmaceuticals has grown since being named a strategic sectorOBGplus
Of all the sectors deemed as strategic for Hidalgo’s economic development, chemicals and pharmaceuticals are perhaps the least explored territory. Unlike the well-known centres of Guadalajara and Cuernavaca, Hidalgo did not have any pharmaceutical laboratories, for example, when the current government took office in 2016. But the state’s ambitions to develop the sector may not be as unlikely as they first seem. “The keys to the pharmaceuticals sector are logistics and human capital,” José…
Working together: Legislation regulating public-private partnerships is now on the booksOBGplus
Though its major motorway and railway infrastructure rivals any state in Mexico, Hidalgo is well aware further works are needed to fully make the most of its privileged geographical position. Improving the state’s infrastructure – in terms of roads, logistics and services – continues to be a priority, with the state now focused on creating the legal framework for funding the works that will keep things moving. Public-private partnerships (PPPs) have been identified as a key model to employ…
Strategic advantage: Mauricio Leyva Arboleda, CEO, Grupo Modelo, on the drivers of the local and national brewery industryOBGplus
Interview :Mauricio Leyva Arboleda What are the main structural strengths of the brewery industry in Mexico? MAURICIO LEYVA: Today, Mexico is the fourth-largest beer producer globally after China, the US and Brazil, even ahead of traditional beer-producing countries such as Belgium, Germany and the Netherlands. The country’s strengths lie in internal consumption, with a population of nearly 130m people and infrastructure that allows for easy export to global markets, many of which demand…
Attracting innovators: Focus on research and development at key clusters is designed to make the state a centre of science and technologyOBGplus
Since the beginning of its industrial history, innovation has played a major role in Hidalgo’s development. It was in Pachuca that Bartolomé de Medina discovered the so-called patio process, which uses mercury amalgamation to extract silver from ore, back in 1554. This innovation would go on to be used in the global mining industry for 300 years. In search of a stand-out economic vocation for the state in the 21st century, Hidalgo’s government is aiming to become a centre for research and development…
