San Luis Potosí, a central Mexican state, has emerged as a thriving hub for both the electronics and automotive industries, thanks to its strategic location, strong infrastructure, and growing investment. In 2018, the state exported approximately $12 billion in manufactured goods, with the automotive sector accounting for around $10.5 billion.
The economic growth of San Luis Potosí has been impressive in recent years, with a GDP increase of 3% in 2018, making it the eighth-fastest growing local economy in Mexico that year. The state’s credit rating was upgraded from stable to positive by Fitch in July 2018, reflecting its strong internal savings, investment, debt, and sustainability indicators.
The state is home to 326 automotive-related companies, generating around 83,000 direct jobs out of the 446,000 registered with the Mexican Institute of Social Security (IMSS). The automotive sector has dominated the state’s economy, contributing to 8% of its GDP. Major global automotive players, such as General Motors and BMW, have established plants in San Luis Potosí, with the latter announcing its investment to produce electric cars and batteries.
The state’s strategic location has also contributed to the growth of the electronics industry, with companies specializing in battery cell production and engine manufacturing, among others. The electronics and systems engineering sectors will play a significant role in the production of electric cars and batteries, providing highly skilled job opportunities.
In addition to large automotive investments, San Luis Potosí has also attracted investments in other sectors such as appliances manufacturing, metalworking, and energy services. Notable investments in 2018 included Magna’s $120 million investment in the Logistik II industrial park and a $100 million investment by a joint venture in the energy sector, specifically gasoline storage.
The state government has made efforts to incorporate more of the workforce into formal structures, reducing the number of informal workers by 34,600 since 2015. Furthermore, a government scheme has brought together 75 micro, small, and medium-sized enterprises (MSMEs) to integrate them into the supply chains of the state’s most important industries, providing support ranging from MXN100,000 ($5,170) to MXN500,000 ($25,900).
Overall, San Luis Potosí has established itself as a crucial hub for both the electronics and automotive industries in Mexico, with a strong economy, growing investments, and a skilled workforce providing a solid foundation for continued growth and success.