Why I Chose to Live Where I Do in Mexico

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You can find, should you wish, idyllic playgrounds from which to live in Mexico. And so, some expats will flock to such places as Cancún and the Mayan Riviera or Puerto Vallarta or Cabo San Lucas.

I say, to each his or her own. Nice places to visit, but not for me to live.

This may sound rather odd to you, but the principal reason that I choose to live in Querétaro, Mexico is because of the growing middle class and industry presence here.

From 2010 to 2020, the population in the state of Querétaro increased by 29.6 percent, reaching a total of 2,368,467 inhabitants in 2020. Much of this growth can be attributed to foreign direct investment, which has led to job creation and economic development in the region surrounding the capital city, Santiago de Querétaro, commonly known as just Querétaro.

Querétaro’s strategic location in central Mexico, favorable business environment, and investment-friendly local government have attracted both domestic and international migrants. I am living proof of that. I didn't come here to retire.

Mind you, Querétaro does have a tourist appeal. Its large and nearly 500-year-old El Centro Historico is worth exploring. And it's a 15-minute walk from my home.

Also not far from my home is a Walmart, a Sam's Club, a Costco, a Home Depot, and other big box stores. Their presence is not due to a large expat community. Rather these stores are here for Mexican people who have historically come to Querétaro for better job opportunities.

Foreign Investment Continues

As I alluded, I wouldn't be living here if tourism was the centerpiece of the local economy, as it is, let's say, in Oaxaca, where there are rich and poor and few in between. I am here in Querétaro because of the growing sectors in aerospace, automotive, and data centers. That's where the better-paying jobs are and that's why the Mexican middle class is growing here.

 
Last week, Eaton said will increase its manufacturing capacity in Querétaro by 50 percent through an expansion project involving an investment of US$85 million and 300 new employees.

The company will increase the capacity of its subway protection connectors, thus expanding its manufacturing facility by 92,500 square feet.

The project includes the addition of new injection presses and manufacturing equipment, the company said in a press release. The company expects to break ground on the expansion project in early 2024.

Eaton's Querétaro facility currently manufactures equipment for subway power lines, including connectors and lightning arresters.

Also in Querétaro, Valeo, a French global automotive supplier, recently announced an expansion of its Technical Development Center for the manufacture of automotive technologies.

The company expects to spend more than US$163 million on the facility expansion over the next five years. About 500 new jobs are expected to be created.

From January to November, Querétaro finalized 12 automotive projects, totaling an investment of US$719 million, with the creation of 4,180 jobs expected.

Between January and June 2023, nearly half of all of Mexico's exports, totaling US$9.1 billion, came from the transportation equipment manufacturing segment, representing an annual growth of 20.7 percent.

Aerospace Hub

Mexico's aerospace exports will break records in 2023, with a 16 percent year-on-year growth to US$9.4 billion, according to the U.S. Department of Commerce.

Querétaro is the principal hub for Mexico's aerospace industry. Exports in that sector increased from US$6.6 billion in 2020 to US$6.7 billion in 2021 and then to US$8.1 billion in 2022.

GE and Rolls Royce produce new turbine systems in Mexico. Fokker Aerostructures manufactures jet wings. The Safran Group has 17 facilities in the country and five in the state of Querétaro, making it the industry's largest employer.

Headquartered in Greater Montréal, Québec, Bombardier has operated aerostructure, assembly, and completion facilities in Canada, the United States, and for the past 17 years in Queretaro where it manufactures electrical harnesses and structural aircraft components.

According to estimates by Federación Mexicana de la Industria Aeroespacial, the Mexican aerospace sector grew from 100 manufacturing companies and organizations in 2004 to 368 by mid-2022.

Valley of Data Centers

Eighteen data centers are currently being built in the state of Querétaro at a total cost of more than US$8.5 billion.

Marco Antonio Del Prete Tercero, the leader of Querétaro’s Secretariat of Sustainable Development (SEDESU), said that six Cloud HQ buildings are being built, a company that will invest US$3.6 billion in the state. The project will also create over 600 full-time jobs, 1,000 temporary jobs, and 250 jobs related to electrical infrastructure.

Economic Growth

In Q3 2023, Mexico's GDP expanded by 1.1 percent compared to the previous quarter. While the quarterly progress was modest, Mexico's economy showed improvement from the previous year, with a 3.3 percent growth in national GDP compared to Q3 2022.

International organizations and financial institutions project Mexico's economic growth to range between 3 percent and 3.5 percent by the end of 2023.

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