VIEW FROM THE TOP
NEW OPPORTUNITIES IN A CHANGING MEXICO ROBERTO CABRERA Managing Partner at Industries and Markets of KPMG
Q: What does Mexico offer to international investors
competitive with the corruption levels that exist in Mexico.
interested in entering the country, given the US political
Second, increasing public security is a must. In many other
climate?
countries companies do not need to invest in security to
A: Even though the environment is challenging, it is bringing
protect their operations. Third, upgrade the local image.
us a historic opportunity to move out of the comfort zone
Mexico has a lot to brag about and our manual labor is
we have been settled in for years. Several factors led us to
very qualified, as we have seen in the aerospace industry.
this comfort zone. First, through NAFTA we took the risk of
Universities are also improving their development of talent
selling 80 percent of our exports to one country. Second,
so promoting the brand Hecho en Mexico is a great idea.
through the migration of 11 million Mexicans we assumed 348
the idea that it was not Mexico’s responsibility to provide
With this order of priorities, the main objective is to
them opportunities. That comfort zone has also made us
increase our macroeconomic levels by battling corruption
tolerate situations like bad administrations and corruption,
and improving security. We are going in the right direction
so the current scenario is full of opportunities.
but at the wrong speed. The anticorruption law is a very good norm but it took years to approve and we are still
Q: How is Mexico positioned compared with emerging
discussing it. The US situation will pressure us to speed
economies competing for the same markets?
up our actions.
A: Mexico is in a great position because it is a competitive economy. A KPMG study says that we are 12.5 percent
Q: On which countries and industries should the Mexican
cheaper and we have more effective corporate income
economy focus its efforts?
tax rates than other economies. Plus, with or without a
A: The first and simplest approach should be Latin America.
free trade agreement with the US and Canada, we are still
According to our KPMG survey Senior Management
neighbors of the most important economy and owners
Perspectives in Mexico 2017, top managers are considering
of a strategic logistical location. We have a very health
investments in countries that economically are well-
macroeconomy and even though debt has grown, it is
positioned, such as Colombia, Peru, Chile and Argentina.
better than that in other countries. We also have great
There are also good opportunities in Central America. A
human capital with a lot of potential to keep improving. In
second target should be Europe because of its economic
addition, Mexico’s demographic is a bonus and domestic
potential and size. We have not given Europe the importance
consumption is growing. That is why someone can come
it deserves and it could be a great destination for Mexican
and invest in Mexico, not necessarily thinking about selling
products. Finally, a third target could be Asia. Countries
to the US.
such as China are complicated to do business with; however, the current situation is making China look at us.
Q: What are the expectations for the Hecho en México program?
Q: What changes are required for Mexican industry to
A: There are certain priorities the government should
compete efficiently on cost and quality in international
address to make Mexico more competitive. First, continue
markets?
the fight against corruption because a country cannot be
A: Mexican companies have to realize that innovation has become a must in their activities. In the last two to three years, the market has experienced many changes and the
KPMG is a global consulting firm that offers audits and
only way to keep up is through innovation. If companies
advisory of financial and legal affairs. Its network of
do not innovate they will not survive. The biggest goal for
independent member firms helps clients mitigate risks and
Mexican companies must be investing in technology and
grasp opportunities
innovation to become economically sustainable.
