Manufacturing in Mexico is booming. Here’s how companies can do it sustainably

Outside of Monterrey in the Chihuahuan Desert, about three hours from the U.S. border, the town of Saltillo has become home to a growing number of automotive, aerospace, and electronics manufacturers. Attracted by the lure of duty-free tariffs, low-cost labor, shorter delivery times, and lower transportation emissions, companies such as Stellantis, GM, Schneider Electric, Rockwell Automation, and Lear Corp. have established or expanded manufacturing in the area. Last year, Mexico became the number-one exporter to the United States. Foreign direct investment in Mexico is on pace to reach $30 billion this year and industrial property demand is projected to increase almost 80%.

Located in the Zapalinamé mountains at 5,000 feet above sea level, Saltillo is a picturesque town. It’s perhaps most known for its classic, namesake tile that’s been handmade for centuries by the Tlaxcaltecas artisans who source the clay from a local riverbed. In this region, however, rainfall is scarce, power can be unreliable, and many of the indigenous cacti, essential to the arid ecosystem, are endangered. While the area is benefiting from job opportunities created by the new manufacturing, there is heightened interest in balancing economic growth with environmental responsibility.

Fortunately, there’s a growing trend in sustainable industrial practices. In 2020, the Mexican Association of Industrial Parks (AMPIP), a vocal advocate for best practices in sustainability, published a road map for a new generation of sustainable industrial parks. Today, many of its member parks are working to alleviate potential risks to the local water and power supply through a number of initiatives. As more businesses consider doing business in Mexico to take advantage of the region’s duty-free tariffs, labor costs, and close proximity, there are three considerations for scaling manufacturing in a sustainable way.

Find the right partner

Work with a partner who shares your core values in sustainability. There are 430 industrial parks across 27 states in Mexico, supporting 3,800 companies and 3.1 million jobs, according to data from the AMPIP, and nearly 70% of the industrial parks of Mexico already follow some sustainable criteria.

One of the leading sustainable industrial parks in Saltillo is 360 Industrial Parks. Its environmentally responsible practices were an important factor in our decision at Infinitum to choose it as our nearshoring partner. It’s run by a father-son team whose connection to the land and community goes back generations. They’re committed to minimizing the footprint of the industrial park to protect the land, habitat, and species that are precious to the area. To date, they’ve invested in renewable energy resources and water reuse, and they’re actively working to stop the loss of biodiversity through innovative green spaces and on-site nurseries that rescue and propagate indigenous plants. Other sustainable industrial parks in Mexico include Vesta industrial parks, Parque Industrial Querétaro, and Finsa industrial parks.

Invest in sustainable approaches

With the opportunity to expand manufacturing in Mexico, companies can also build green manufacturing facilities to help limit energy consumption, conserve water, and reduce carbon emissions. Clever architecture and new building methods make it possible to use fewer raw materials, incorporate recycled elements, leverage solar panels, and take advantage of natural light to reduce electrical requirements.

Building in Saltillo, which has moderate temperatures, also reduces the energy needed for air-conditioning and heating. Other sustainable practices include recapturing energy within manufacturing processes, reusing shipping crates multiple times before disposal, and implementing water reuse practices. 360 Industrial has its own water treatment facility that captures wastewater and treats it. The treated water irrigates the green spaces around the park and is absorbed back into the natural aquifer. It’s a continuous cycle that’s more efficient than the traditional method of discharging the water to the municipality.

Take care of the community

More than 50 years ago, as the town was developing, Saltillo planted non-native trees that use more water than native species. Over time, those trees have multiplied, requiring more and more water. At the same time, cacti species, such as biznaga, lechuguilla, candelilla, and sotol are becoming endangered. 360 Industrial is working to reverse that trend by harvesting endangered cactus species from local build sites and relocating them to an on-site, native plant nursery so they remain in the ecosystem.

It’s also planting native trees like huisache, mesquite, and palo blanco, which don’t require as much water and can eventually provide shade to keep industrial buildings cooler in warmer months. That native plant nursery will have the potential to produce 20,000 trees a year while also creating jobs. Additionally, it will provide the city of Saltillo with native huisache and mesquite trees, which can help with water conservation.

When companies consider nearshoring in Mexico, they’re in a position to rethink their manufacturing footprint for the long term. The growing trend in sustainable industrial parks is a welcome one, and something all manufacturers should explore.