“In Yucatán we govern with companies to generate wealth and prosperity”

Interview with Ernesto Herrera, Secretary of Economy and Labor Promotion of Yucatán

Ernesto Herrera Novelo came to politics from private business, and it shows. He participates in Madrid in the seminar “Yucatán, the right choice to invest in Mexico.”

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They repeat that in Yucatán they govern with companies, and that their function is to provide security and create optimal conditions for the creation of wealth.

 

-What advantages does Yucatán offer for Spanish companies? 

 

First of all the location. Yucatan has a privileged geographical location, due to its proximity to United States and its position with respect to Caribbean, Latin America and Europe which make it an ideal starting point for the distribution of merchandise. This allows us connections with international markets at optimal times. The Port of Progreso is one of the most important in the country and we are working to make it more competitive and put it on par with the demands of the level of industry that the state now has.

 

-How does that geographical position translate into connectivity?

 

We have one of the largest airports in the country in Mérida, which registered a total movement of 2019 passengers in 2,700,000. And in the period from January to October 2021, it carries a movement of 1,400,000 passengers. We have nine national destinations with direct flights to the capitals of the southeastern states of Mexico and the most developed states of the country, with 19 daily flights to Mexico City. On the other hand, the second busiest airport in Mexico is Cancún and at the same time the most important at the national level and in Latin America by international passengers, with more than 113 international destinations.

 

-I want to stop at the jewel of infrastructure, at the high port of Progreso.

 

Due to its growth in recent years, the high-altitude port of Progreso already demanded modernization and expansion, thanks to coordinated work with the federal government, today the project to expand it for 4 billion pesos with private investment is active. , which will go from a draft of 9.75 meters to 12.8 meters, in addition to the creation of up to four new terminals, relocation of the current TEC (TCY) for a TUM (piers 5 and 6), and which involves partial transfer contracts of rights and obligations to operate new terminals.

 

 

-Something that is little known in Spain is the industrial boom of Yucatán

 

Yucatán in recent years has had a historic and unprecedented industrial development, which has given it important development with the arrival of large companies, the watershed being the Cervecería Yucateca de AB InBev Group of Belgian capital, but also others such as the German Leoni, or more recently the interest of the Italian Fincantieri, among many others that have discovered the potential of Yucatán and that came to generate a virtuous ecosystem of development, supply for local SMEs and job creation.

 

-Spanish investors ask about human capital

 

We have human capital in constant training, committed to mGerman dual model and educational competencies in congruence and on par with the industrial development of the state.

 

-And do you also care about safety and quality of life?

 

We are first place in security at the national level, first place in the Rule of Law Index in Mexico 2020, and also first in the Business Environment Indicator (ADN). We have a hospitality, educational, cultural, leisure and service offer that is unique in the southeast of Mexico and very attractive nationwide.

 

-What facilities or advantages are you going to announce in Spain for Spanish companies?

 

We always try to provide special treatment to each project and each company interested in developing in our state. First of all, we generate work agendas, we sit down with them to understand their needs, listen to their objectives and then be able to pave the way, which means following the formula: the government offers support so that the investor can focus on what is theirs. We show them the status, prioritizing points of interest according to their sector and aligning objectives, finally they can be sure that whoever invests in Yucatán will have our support at all times. We have proven that when there is a convergence in the development vision, great results are achieved in favor of companies and people.

 

-What economic sectors are most interesting to Yucatán?

 

Manufacturing is a sector with a large participation in the Yucatan economy and precisely because we seek our strength in diversification, we are betting on branches such as automotive and aerospace, which have strong roots and proven success in the entity, which is the case of companies as Air Temp, which manufactures air conditioners, radiators and condensers; PCC Airfolis, which manufactures turbine blades; Leoni, which creates electronic harnesses for cars; Sign an Metal, which makes high-precision mechanical and machining seals, so today Yucatán manufactures highly specialized components for the world and that is the path we want to follow. Likewise the Japanese Uchiyama Manufacturing Corporation, arrived in 2019, which represents the first Japanese investment in the automotive sector in the southeast of Mexico. All of this allows us to continue strengthening this important and strategic branch for the state. Likewise, the agroindustrial sectors that are very well consolidated and where we have maintained leadership and competitiveness for many years, ICT, jewelry, textiles and furniture.

 

-For what reasons is Yucatán the right choice to invest in Mexico?

 

For your safety, dual education, civil protection and legal certainty. Yucatán occupies first place in security at the national level, in the Rule of Law Index in Mexico 2020, in the Business Environment Indicator (ADN), in advances in Regulatory Improvement at the municipal level, in public and legal security issues of the country (Law) and in the potential of state political systems to be stable and functional (political system).

 

Likewise, it ranks third in Regulatory Improvement at the state level, in the 2020 Social Progress Index and in the Government Index capable of positively influencing competitiveness (Government).

 

We have one state policy in favor of private investment, which is supported by what has already been mentioned and by our geographical position and connectivity conditions, which allow us to reach important markets such as that of United States, the Caribbean islands and Panama.

 

Likewise, on the academic front, we have higher education institutions such as the Polytechnic University of Yucatán (UPY), oriented to information and communication technologies, Big Data, robotics, mechatronics and embedded systems.

 

Likewise, we promote bilingual training. In Yucatán, we have more than 47 universities, which promote the specialized training necessary for companies that are arriving in the state.

 

-And the investments from Spain, how are they going, what amounts of Spanish investment can we talk about?

 

According to data provided by the Ministry of Economy (SE) referring to the Foreign Direct Investment (FDI) towards Yucatán, the value of FDI from Spain from 1999 to the third quarter of 2021 is 492.8 million dollars, which represents a 14.2% share of the total value of foreign investment in the state, also being the third country with the highest value of FDI in Yucatán during the indicated period.

 

In reference to the accumulated value from 2019 to the third quarter of 2021, this is 90.6 million dollars, which represents 24.3% of the total FDI in the state for the same period indicated, which was 372.9 million dollars, it should be noted That Spain is the second country in order of importance according to the amount of foreign investment in Yucatan in the accumulated period from 2019 to the third quarter of 2021.

 

-Is tourism no longer a priority for the State?

 

Of course yes, so much so that a few days ago in Yucatán it hosted the Tourist Tianguis 2021, the most relevant event in this sector in Mexico and a key business forum based on appointments between buyers and exhibitors, talking about large-scale operators in the sector at the national level.

 

Thanks to its implementation, a significant benefit was realized for Mérida and business organizations have reported very positive results in sales, derived from the almost 300 pre-established appointments plus the additional ones. It also increased the influx in tourist sites and in the gastronomic pavilion there was the participation of 16 regional restaurants that served more than 3 thousand visitors per day, which also represented an important economic benefit for the sector. That is just a sample of how tourism in Yucatán is a strategic sector.

 

-Let's talk about politics, investment protection, and stability. In what situation is Yucatán in these indicators?

 

According to figures presented by the INEGI within the National Survey of Victimization and Perception of Public Safety 2021 (March-April), Yucatán occupies 1st place among the safest federal entities.

 

According to The World's Safest Cities Ranking, 2019. CEOWOLRD Magazine and Readers' Choice Awards 2021.

 

In the same way the American Chamber Mexico, considers Yucatán as the entity with the greatest security for companies to carry out their operations.

 

Likewise, DELOITTE points out that the state of Yucatán is in 1st place nationally in the Business Environment Indicator (ADN).