The economic development of the state of Baja California’s leading city (Deitac) has reported record growth in industrial investment in Tijuana in 2021. Its focus will be to promote emerging sector investment and direct its efforts in the California market in the coming year.
During the presentation of his Annual Activity Report, Lic. Carlos Jaramillo Silva, President of Economic and Industrial Development of Tijuana (Deitac), highlighted that this was a year of intense promotional work that has paid off in the form of new industrial investment in Tijuana.
He indicated that, during 2021, 3,604 profiled contacts were generated, 15 industrial Networking events, and three trade missions were attended. Additionally, 110 seminars for potential investors were conducted. At the same time, more than 60 hours were spent with potential investors to showcase manufacturing capabilities and possible service solutions that could meet their requirements in Tijuana.
2021 was cited as one of the best years in terms of investment for Tijuana. The city registered an industrial real estate absorption rate of almost 6 million square feet as of the month of September. In addition, it is expected that approximately 7.5 million square feet will be newly occupied as of the end of this year. Despite the pandemic, which is still a factor in companies’ site selection activities, this total represents a historical figure for the city.
During the first quarter of the year, Jaramillo highlighted that there were seven new operations and ten expansions constituted additional industrial investment in Tijuana. In total, this capital influx is equivalent to 11.7 million dollars; for the second quarter, there were four new operations and seven expansions, with a total investment registering 9.8 million dollars.
Tecma is one of the companies expanding in Tijuana in 2021
As an example of Detaic’s success full efforts in 2021, these first-quarter industrial investments in Tijuana stand out:
- Aluminios Baja California committed to establishing a presence in the Florido Industrial Park by acquiring a 460,000 square foot lot.
- Amazon generated a real estate absorption in Otay of 354,000 square feet of BTS-type building.
- West Modular committed to a presence in the Florido Industrial Park by executing a 220,000-square-foot rental transaction.
- The Tecma Group of Companies will have expanded its current industrial space inventory by an additional 195,000 square feet of stock located in the Libramiento submarket.
While, in the third quarter of 2021, added the leader of Deitac, four new operations, and 16 expansions were reported with an investment of 19.5 million dollars. Expectations for the fourth quarter of 2020, which has yet to close, are very high.
“We have to generate industrial investment in Tijuana that is based on added value and not cost. It must also be centered around developing available human resource talent, connectivity, and solutions integration from our regional supplier ecosystem. For instance, we are in a time of technological convergence that extends beyond the traditional manufacturing of medical devices. For instance, we have moved to the age of life sciences. Beyond an automotive and aerospace sector, we have now moved to an expanded mobility sector; and increasingly the electronics industry is moving towards a close integration with Information Technologies as an important part of the processes of its manufacturing,” he said.
Carlos Jaramillo assured those in attendance that, at present, there is transversality between sectors. However, this condition is because they have converging components. For this reason, Deitac seeks to attract higher value investments that utilize the most modern of manufacturing technologies.
“We have to aspire not to be just maquiladoras, but to be centers of excellence and innovation. Therefore, this will be the focal point of our efforts in 2022,” said the leader of the effort to promote industrial development in Tijuana.
In this sense, he emphasized the need to depend upon the development of local talent and other issues that affect the attraction of investment to the city. In addition to this, robust energy must be directed towards industrial promotion, the continued strengthening of institutional relations, and the promotion of emerging sectors that will define industrial development in Tijuana in the near future and beyond.
Jaramillo Silva also anticipates that 2022 will also be a positive year for the attraction of industrial investment in Tijuana. Since the promotion plan for the coming year will be similar to that of the current calendar year, the leader of Deitac conjectures that next year’s results will be similar to those achieved in 2021.