Mexico, Miami, discovering each other, say HBO, UPS and AeroMexico executives
Mexico has quickly become a top trade and investment partner for South Florida, and the relationship can grow further if business leaders recognize and better leverage the existing ties.
Three top Mexican executives with shipping giant UPS, airline Aeromexico and film company HBO Latin America shared those insights at WorldCity’s Global Connections May 27 in only the second event in in the 11-year history of the event series that focused exclusively on the Aztec nation of more than 100 million people.
Mexico had not been a top business focus in South Florida in the past, partly because Mexico’s commerce moved largely by land through neighboring U.S. states such as Texas, Arizona and California. Mexican business groups also tended to focus more on their domestic or U.S. West Coast markets and not globally.
But Mexico has opened more to the world. Mexico now ships lots of oil, electronics and even gold to South Florida. Mexican investors are snapping up real estate in greater Miami. And Mexican business groups – including media and travel companies – are expanding operations into South Florida to serve Latin America and the fast-growing U.S. Hispanic market, panelists said.
“Mexico is going through its best economic times,” said Miguel Angel Oliva, vice president for corporate affairs and government relations for HBO Latin America and formerly an executive with Eli Lilly, Pfizer and American Express. “The middle class is growing. Poverty is being reduced.”
Part of Mexico’s growth is coming from a rise in manufacturing for U.S. sale. Some companies are moving production back from China, as Chinese labor rates increase and higher gas prices make transport more expensive from Asia to North America, said Griselda Hernandez, director of operations for the north zone for UPS Americas, who oversees operations in Mexico, Central America and the Caribbean.
Among products made in Mexico for export: Blackberry smart phones produced in Guadalajara, Hernandez said. Autos, auto parts and jet parts also are top exports – with aviation parts often sent to the Miami area for use at South Florida airplane repair centers, said WorldCity President Ken Roberts.
Solid Mexican export growth helps explain why Mexico finished among the top 10 trade partners for South Florida for the first time last year, Roberts told the group.
Indeed, Mexico set a new record for trade with the United States in 2010 and ranked as the No. 3 U.S. trade partner overall, trailing only after Canada and China, Roberts said.
Mexico’s growth is drawing greater interest from multinationals as diverse as Microsoft, Citibank and Visa, including many with their Latin American headquarters in the Miami area, panelists said
For Aeromexico, the route with the highest percentage of business travelers is now the Miami-Mexico City service, said Gabriel Parra, regional director for Aeromexico in Miami. The airline now flies four non-stop flights daily between Miami and Mexico City, double the count last year.
“The possibility of business between these two points is incredible,” Parra said, citing opportunities for business in Mexico that range from Internet marketing to business consulting.
Problems with Mexican drug cartels and violence won’t stop the business expansion, panelists agreed. The International Monetary Fund recently increased its forecast for Mexico’s economic growth this year to 5 percent, similar to growth in 2010.
“Yes, there’s a lot of violence in some specific areas in Mexico, but the places where most U.S. tourists go are pretty safe,” said HBOS Oliva, noting U.S. retirees keep flocking to San Miguel de Allende and corporate offices keep opening in Mexico City and other cities known for finance and factories.
To keep business expanding between Mexico and South Florida, panelists suggested leaders leverage existing ties through such organizations as the U.S.-Mexico Chamber of Commerce, Miami chapter, and the Mexicans in South Florida group Enlace (or Connection) found online at enlacemexico.org.
It also would help to boost training for small – and mid-sized firms both in Mexico and South Florida to master the international trade ropes and boost their sales abroad, said participant Javier Garcia, who works in international sales at logistics firm C.H. Robinson.
“The education piece,” said Garcia, “is so important.”
Global Connections is one of seven event series organized by WorldCity to bring together executives on international business topics. The Global series is sponsored by Florida International University’s business schools, cable TV and Internet services provider Comcast and real estate company Waterford at Blue Lagoon.
The next Global Connections event is set for June 24 on the topic, “Hiring, Firing and Finding: The Latin American Talent Pool.”