Mexico: A Global Aerospace Manufacturing Powerhouse

Mexico has one of the highest growth rates in the manufacturing of aerospace components in the world. By the end of 2025, the aerospace industry will be among the 10 largest manufacturing countries in the world. Currently, the aerospace industry in Mexico is ranked 12th in the world in terms of export volume of components. The annual growth rate in the manufacturing of aerospace components in the aerospace industry in Mexico is around 14%.

Exports of aerospace components in the aerospace industry in Mexico set a record in 2023, having reached $9.4 billion. According to estimates for 2024, the export of aerospace components has already exceeded $10.7 billion, mainly due to the increase in demand from abroad. The Mexican Federation of the Aerospace Industry (FEMIA) values the local aerospace industry at $11.2 billion in 2025. The association also predicts that by 2029, the aerospace industry will reach $22.7 billion, which is an annual compound growth rate of over 15%. Aerospace manufacturing in Mexico has taken its place as one of the most important aerospace contributors on the planet.

Reasons

The continued influx of foreign direct investment (FDI) into the aerospace industry in Mexico has played an important role in the development of the industry. From 2006 to date, Mexico has received more than $3.745 billion in foreign direct investment in aerospace. In the first quarter of 2024, more than $119.4 million in FDI flowed into new aerospace projects, showing that aerospace manufacturing in Mexico continues to gather momentum. In 2025, Mexico was also in the top countries in the world in terms of attracting investment in the aerospace industry. For MNCs, Mexico is of interest as a country close to the U.S. market, with favorable trade agreements and a qualified labor force at low cost.

States in Mexico receiving the largest share of these investments in the aerospace industry are:

• 4% in Baja California, one of the oldest aerospace clusters with decades of experience.
• 2% in Chihuahua, specializing in the production of high-complexity components.
• 0% in Sonora, specializing in aerospace engine parts manufacturing.
• 3% in Coahuila, where manufacturing infrastructure is also expanding.
• 9% in Nuevo León, home to manufacturers of advanced components.
• 8% in Querétaro, a new center of engineering and MRO.

In all, 386 aerospace companies operate in Mexico in 19 different states, of which 370 are manufacturers. Collectively, the companies generate more than 50,000 direct jobs and more than 190,000 indirect jobs, supporting local communities and fueling broader economic growth in the region.

The aerospace industry in Mexico is also highly consolidated in terms of industry clusters. The most important elements of the aerospace industry, including manufacturing, R&D, logistics, and education, are combined into regional platforms that facilitate shortened supply chains and access to specialized labor.

Querétaro’s aerospace cluster, for example, is perhaps the most famous in Mexico, attracting global companies such as Airbus and Bombardier. Its airport serves as a hub for both cargo and MRO, while the local Aeronautical University in Querétaro (UNAQ) produces specialized talent for the engineering sector.

In Baja California, there is a long-established network of suppliers and a cluster of specialists in critical aerospace components and avionics systems.

Chihuahua is known for the assembly of complex components for engines and fuselages and is also home to a number of U.S. and European Tier 1 and Tier 2 suppliers.

In Nuevo León, local companies such as Frisa Aerospace and PCC Aerostructures have carved out a niche in advanced components, supplying to major OEMs worldwide.

Mexico Aerospace Fair (FAMEX)

This convergence is strengthened in both global supply chains and in the North American region by the USMCA (T-MEC), which has eliminated trade barriers for Mexican aerospace products in the U.S. and Canada.

Another important differentiator of aerospace manufacturing in Mexico in recent years has been the focus on technological development. In recent years, Mexico has already hosted certified parts manufacturers for leading global aerospace giants such as Rolls-Royce, General Electric, and Bombardier, such as Kuo Aerospace or Frisa Aerospace.

Approximately 13% of all aerospace companies in the country also invest in R&D. In the aerospace industry in Mexico, these activities are directed towards the creation of next-generation solutions in areas such as avionics, sensors, new lightweight materials, and additive manufacturing. Emerging companies such as Hydra Technologies are already at the forefront of UAVs, both for commercial and defense applications.

International collaboration has also contributed to this innovation. The aerospace industry in Mexico has increased its technological ties through joint ventures with European and Asian companies, while government-backed dual education initiatives have also been implemented to improve technical education and promote internationally recognized certifications.

Important in this competitive picture is, as in other sectors, the availability of qualified human capital. Aerospace manufacturing in Mexico already employs an increasing number of qualified personnel. Every year, the country has over 25,000 engineering graduates in the fields of mechanical, electrical, aeronautical, and mechatronic engineering.

This talent pool is further enhanced by vocational and technical training programs, often developed in direct cooperation with private companies, local governments, and universities. These measures aim to ensure that new graduates already have in-depth knowledge of the aerospace industry, including knowledge of international standards such as AS9100 and NADCAP.

The Mexican Space Agency (AEM) has also played an important role in advancing specialized knowledge and academic research in areas such as aeronautics, but also satellite technology. Overall, the alignment of academia, industry, and the government is paving the way for a more innovation-based and, in the long term, more sustainable aerospace manufacturing in Mexico.

Mexico Aerospace Fair (FAMEX)

In April 2025, Mexico’s Feria Aeroespacial México (FAMEX) once again brought together key companies in the aerospace sector in a major business and networking event. Considered the largest aerospace fair in Latin America, the 2025 edition was also a success, with 337 companies from 47 countries present.

The most important takeaways from FAMEX 2025 included:

• Signing of new agreements with aerospace companies from Canada, France, and Japan.
• Areas such as advanced air mobility, sustainable aviation technologies, and electric propulsion were also in the spotlight.
• Presentation of the Pegasus PE-210A national aircraft by Oaxaca Aerospace.
• Interest in satellite systems and orbital platforms continues to grow, both among new startups and through new public-private partnerships.

FAMEX has thus once again underlined Mexico’s strong image as a global aerospace location, not least for domestic innovation, but also to attract important foreign partnerships.

Infrastructure Development Supports Aerospace Industry in Mexico

The success of aerospace manufacturing in Mexico is also due to a constantly improving infrastructure. Important airports such as Querétaro International Airport or Felipe Ángeles International Airport (AIFA) have upgraded their cargo handling and MRO facilities to accommodate the growing volume of air traffic and, above all, to increase logistical efficiency.

In addition, state programs such as IMMEX, which regulates duty-free temporary imports for manufacturing purposes, or the USMCA, which has liberalized trade with the United States and Canada, continue to offer the industry a solid legal and trade framework.

Of course, the challenges are also described. While the largest aerospace clusters are well developed, infrastructure bottlenecks, in particular in logistics and transportation, persist in some areas. For sustainable growth, the country must also continue to harmonize its regulations with international standards and bodies in order to speed up certification and quality assurance processes.

Outlook

In the medium and long term, aerospace manufacturing in Mexico is expected to continue on a growth path with high momentum. The market research company Markets and Markets already expects that the aerospace industry will more than double in value and reach $22.7 billion by 2029.

Opportunities are particularly seen in:

• Global decarbonization targets and the development of sustainable aviation fuels (SAFs).
• Electric Propulsion Systems, in general, and Urban Air Mobility Platforms.
• Emerging fields such as satellite development or even small launch vehicles for telecom and remote sensing applications.
• AI and automation to increase efficiency in design, testing, and maintenance.

Mexico’s participation in international aerospace forums and standards organizations will also be crucial to ensuring that the industry is globally recognized and can access high-value markets.

Challenges in the Aerospace Industry in Mexico

Of course, the industry will also face several challenges in the future, and Mexico must deal with these if it wants to remain on a growth path. These include, among others:

• Dependence on foreign technology and suppliers, especially for high-value components and raw materials.
• Infrastructure limitations in secondary regions, which slow the development of aerospace clusters.
• Continuous development of human capital, particularly in specialized fields such as avionics, materials science or systems engineering.
• Concentrated investments in innovation, regulatory reform and, in particular, in a qualified education system will be crucial in the future if Mexico wants to address its structural weaknesses and achieve its competitiveness in the coming decades.

Summary

Mexico has established itself in recent years as a dynamic, attractive for investment and innovation-driven industry in the aerospace industry in Mexico. Driven by a combination of foreign investment, industry clusters, qualified personnel and support from the government, Mexico is taking its place as one of the key players in the future of global aerospace manufacturing. If the upward trend continues and the country succeeds in overcoming some of its remaining challenges, aerospace manufacturing in Mexico is on the way to becoming a global aerospace leader by the end of this decade.

Panama’s growth in the first few months of 2025 exceeded even the most conservative expectations for most economic indicators.

The Central American country’s Gross Domestic Product (GDP) for the first quarter of the year increased by 5.2%, according to figures from the National Institute of Statistics and Census (INEC). The Monthly Economic Activity Index (IMAE), for its part, shows a cumulative growth of 6.1% between January and April. These are numbers that, in other contexts, would be celebrated and indicate a year of strong start for Panama business growth.

Sectoral Engines: Canal, Finance, and Agriculture

Three sectors, in particular, drove Panama’s economy during the first months of the year: the Panama Canal, the financial system, and the agricultural sector.

After the water restrictions that affected Canal activity in 2024, 2025 started showing a vigorous recovery in the interoceanic waterway. Between January and April, the number of transits increased by 33%; the volume of goods transiting the Canal increased by 35%; and toll revenues increased by 42%. These results not only reflect the Canal’s recovery, but its leadership in an economy whose logistics is the point of articulation of most economic activities—an essential driver of Panama business growth.

The financial sector also reported strong figures, growing by 7.1% in the first quarter. As of April, the industry continued to benefit from an active banking system that has responded agilely to the recovery in demand for credit, particularly in the commercial and public sectors.

With more moderate growth, the insurance industry also added its share to the performance of the financial sector. Written premiums between January and April grew by 3.7%, driven by double-digit growth in individual life insurance, personal accident, health, auto, and technical insurance. Although this behavior would indicate a greater awareness of insurance among certain segments of the population, this remains a major challenge to achieve greater penetration in this market.

The agricultural sector also showed its relative robustness during the first months of the year. It grew 6.6% in the first quarter and continued to do well through April. Pineapple exports led the sector with a significant growth of 114%; watermelon exports grew by 18%, coffee exports increased by 17%, and banana exports grew by 9.7%. This was made possible by a recovery in international prices of certain agricultural products, which benefited specific export segments and reinforced Panama business growth in rural areas.

Moderate Performance in Construction and Commerce

In construction and commerce, both with more modest growth, other sectors also showed good performance: electricity, gas and water generation and distribution increased by 4.5%, hotels and restaurants, which are closely related to the tourist sector, grew by 4.7%, and real estate grew by 3.6%.

In more specific figures, the GDP of the construction sector grew by 1.8% in the first quarter, while the GDP of the commerce sector grew by 2.9%.

Construction was driven, especially by public investment, while private activity has shown signs of weakness. Between January and April, the production of ready-mix concrete decreased by 7.8%; the production of gray cement decreased by 5.1%; and construction permits decreased by 12.1%. This behavior would indicate a difficult second half of the year for the construction sector and create additional pressure on Panama business growth in this key industry.

Commerce, for its part, showed a mixed reality: retail trade activity increased, supported in part by an increase of 11.8% in sales of new cars. Wholesale trade, in turn, had setbacks, with re-exports from the Colón Free Zone (ZLC) decreasing by 2.5%. The ZLC, which continues to face external restrictions, increasingly aggressive competition from other regional logistics platforms, and an urgent need to reinvent its business model, remains a critical component of Panama business growth that requires modernization and innovation.

A Question of Infrastructure

Port activity during the first four months of the year grew by 2.5%, a percentage far below the growth rate of 16.8% recorded in the same period last year. These numbers suggest that Panama’s logistical infrastructure could have reached a saturation point. While Panama continues to enjoy a strategic position in the global logistics matrix, the platform available today has already reached a certain level of maturity that will require, in the short or medium term, either an expansion of capacity or the building of new ports.

The geopolitics and global scenario has become increasingly complex and sensitive, and Panama’s ports are not exempt from that reality: international trade tensions, external pressures, and delicate negotiations regarding control and operation of some key terminals in the country.

The Labor Market Gap

The most worrying statistic, however, is the one related to employment. Between January and April, the number of labor contracts registered with the Ministry of Labor decreased by 0.3%. This would point to a lack of formal employment generation that fails to keep pace with Panama business growth. Informality in the labor market continues to predominate and threatens to become more entrenched in the national economy. The unemployment rate in 2024 was 9.5% and labor informality 49.3%.

A Strong Start, and Storm Clouds on the Horizon

Despite the strong start, the panorama is not free of risks. The approval of the reform to the pension program of the Social Security Fund unleashed a wave of social protests that directly impacted the pace of growth in several key sectors, such as construction, banana production, exports, public education, among other activities sensitive to social unrest.

Teachers, construction workers, banana producers and Indigenous peoples took to the streets to express their discontent. Demonstrations were held in various parts of the country, with the province of Bocas del Toro becoming the epicenter of the unrest. Infrastructure projects were temporarily suspended and rescheduled, and sectors such as tourism, transportation, and commerce were indirectly affected, among other sectors due to roadblocks, restrictions on mobility and logistical disarticulations in various parts of the country.

By way of reference, the province of Bocas del Toro would represent a percentage of about 2% of Panama’s GDP. Banana production, for its part, would account for about 0.5% of the country’s GDP.

Budget Reduction

An additional element that will impact Panama business growth in 2025 will be the recently announced cut of up to $1.9 billion in the national budget. The main cut would affect the Central Government, which would see its budget reduced by $1.536 billion. The objective of the measure would be to comply with the ceiling of the deficit established by the Social Fiscal Responsibility Law, which limits it to 4% of GDP for the current year.

Achieving this magnitude in a budget cut represents a very difficult challenge. After accounting for public debt servicing (principal and interest), the Central Government’s operating and investment budget would be $9.863 billion (before the adjustment). The announced cut, in this case, would represent a reduction of 15.6%.

The rigidity of public spending, special laws that encumber a large part of the budget, ongoing public investment projects, and a population that is increasingly demanding services and solutions, make this a move with very little room for maneuver.

Absent the negative events described above, Panama’s growth this year could have been as high as 6.0%. However, in the new context marked by social tensions and fiscal adjustments, the GDP will close the year with growth closer to 4.0%.

These new projections converge with the figures presented at the beginning of the year, which foresaw a temporary deceleration of the economy due to the public reaction against the reform of the pension program of the Social Security Fund.

How to Sustain an Inclusive and Sustainable Panama Business Growth

The economic performance of the country this year has confirmed, on the one hand, that Panama has structurally resilient sectors that are capable of withstanding adverse scenarios. But it has also demonstrated the country’s vulnerabilities: an economy that grows without generating sufficient formal employment, a budget under pressure, an impatient society, and a logistics model that approaches its limit unless expanded and modernized.

It is not a question of how much the country’s economy will grow, but how it grows and for whom. Maintaining the rhythm of Panama business growth in the coming years will require more than a series of encouraging numbers in the short term: it will require the structuring of an economy that, within the global context, is socially stable, fiscally sustainable, and strategically located.

Consensus has to be built, without losing sight of an essential truth: an economy that does not generate real well-being, decent employment, and social cohesion, no matter how much it grows, will remain stagnant in its contradictions.

Argentina and France have taken a concrete step towards strengthening their bilateral economic relationship with the signing of a cooperation framework agreement for the mining sector. This accord aims to increase investment and financing in mineral resources for energy transition, especially lithium. This strategy gives Argentina a vantage point on international supply chains.

The French Minister for Foreign Trade, Laurent Saint-Martin, and the Argentine Secretary of Mining, Luis Lucero, led the signing of the memorandum of understanding in Buenos Aires, which both described as the start of a new era of cooperation between the two countries. Both stressed that the agreement establishes the mining sector as one of the strategic axes of relations between Argentina and France, as part of a commitment to decarbonization and the energy transition.

Framework agreement to increase French mining companies in Argentina

The framework agreement is intended to provide the platform for the articulation of long-term partnerships and French mining companies in Argentina, precisely for that purpose, the exploitation of the country’s lithium resources. Minister Laurent Saint-Martin has indicated that the document is a starting point for closer bilateral cooperation in the exploration and processing of these critical minerals. It will also allow France to attract companies and investments to the country in the short and medium term. “This will allow us to accelerate opportunities for French companies in Argentina and to promote sustainable mining development practices in line with European and global standards,” said the minister at the signing ceremony.

The Argentinean Secretary of Mining, for his part, emphasized the importance of the agreement to “work on the development of a roadmap with very clear deadlines”. According to Lucero, “Argentina and France will work on permanent technical and political dialogue to identify projects that can have tangible results and the potential to generate value for both countries.” The secretary has also assured that this document “is not just a memorandum of understanding, but the beginning of new actions and a joint agreement to give practical meaning to each of the objectives described in it.”

The Strategic Value of Lithium

Lithium, called “white gold”  by some is key to developing the batteries that power electric vehicles (EVs), laptops, mobile phones, and renewable energy storage systems. Therefore, in a world undergoing a massive energy transition towards green energy sources, lithium demand is on the rise, and Argentina is well positioned to play a significant role in the process of its supply.

The United States Geological Survey (USGS) estimates that Argentina has the world’s third-largest lithium reserves, behind Bolivia and Chile, which together are known as the “Lithium Triangle” in South America, a region that alone holds more than 50% of global lithium reserves and which is increasingly at the center of global battery supply chains. In addition, Argentina also ranks fourth in lithium production, behind Australia, Chile and China, according to the latest USGS data.

Argentinian lithium mining is open to foreign direct investment (FDI), unlike in some of its neighbors, which has created a more welcoming regulatory environment for international cooperation. Argentina’s lithium reserves are mostly salt flats located in the northwestern provinces of Salta, Jujuy and Catamarca, which are sparsely populated areas where the mining activity is more than just a business for the nation, but also means job creation and a motor for local economies, a factor that has been attractive for French mining companies in Argentina to take hold in the country.

Mining as a driver of economic development

Argentina is betting on the mining sector to diversify its economy and attract foreign currency, which it badly needs to reduce its fiscal deficit and inject dollars into its foreign currency reserves, and, at the same time, it also represents an opportunity to create jobs in an otherwise underdeveloped region.

In this sense, mining exports have become a growing source of income for Argentina over the years as the country has faced economic volatility, inflationary pressures and external debt. These exports are now part of Argentina’s overall strategy to promote mining not only as a short-term economic relief but as a step towards the country’s full integration into global value chains based on clean energy technologies. In this sense, the framework agreement with France to promote investment and financing in the sector is in line with Argentina’s vision of becoming a more reliable and responsible supplier of critical minerals to the world.

In addition to lithium, Argentina also has rich reserves of copper, silver, gold and other minerals which are vital for electrification and technological innovation. However, it is the former which is the most sought-after for most international cooperation efforts because of the key that it plays in the global energy transition. This means that there is a growing field of opportunity for French mining companies in Argentina which can expand their presence in Argentina, not only in lithium, but also in other critical minerals.

Technical cooperation and environmental standards

Another key aspect of the new Argentina-France agreement is its commitment to technical cooperation. France has much experience in sustainable mining practices and environmental protection, and it is clear that Argentina is also interested in incorporating the former into its local mining sector.

Technical know-how, training and joint research efforts are all expected to be important pieces of this bilateral cooperation. Environmental sustainability has already been a topic of great concern in the globalized world and, particularly in the mining sector, increased attention from consumers, investors and regulatory agencies has placed additional pressure on countries to be environmentally and socially responsible.

The two signatory countries have already expressed their intention to see that the future investments undertaken as part of this agreement will be made taking into account the strictest environmental and labor standards. The memorandum makes reference to, among other things, water management practices, community consultation protocols, and responsible mining operations, with a preference for low-impact extraction methods such as direct lithium extraction (DLE), which reduce the environmental footprint of mining activities. French mining companies in Argentina are expected to be in the lead on this front.

France’s growing investment footprint in Argentina

The latest agreement is but a reflection of broader trends in French investments in Argentina. French direct investment in the South American country grew 43% y/y in 2024, amounting to USD 7.6 billion across a variety of sectors, despite the challenging macroeconomic conditions in which the country finds itself.

A highlight of the sector has been the more than USD 850 million investment that French mining group Eramet has made in Argentina to launch the first commercial direct lithium extraction (DLE) plant in the country in Salta. This has made the company a pioneer in the region’s lithium production modernization efforts, and the facility is expected to increase significantly the nation’s lithium production. Additionally, the Eramet plant in Argentina also sets the standard as a model of sustainable extraction practices in the country.

Eramet’s investment is strengthening the French position in Argentina’s mining sector as well as highlighting the tangible benefits of the type of bilateral agreements like the one signed earlier this year. The plant is expected to begin production in 2025 and could eventually produce several thousand tons of battery-grade lithium per year. Its success will likely become a model for other French mining companies in Argentina as well as investors from other countries in search of similar socially responsible and economically feasible investment projects in the sector.

Argentina’s growing network of mining alliances

Argentina’s memorandum of understanding with France is not the first of its kind, or the most recent either. As Argentina has sought to use its wealth of mineral resources as a diplomatic tool in recent months, a series of similar agreements with other countries have been signed.

The latest have been with the United States (August 2024) and the United Arab Emirates (February 2024). By negotiating cooperation accords in mining, Argentina is aiming to establish itself as a major player in the supply chains that will power the electric vehicle revolution and the global renewable energy build-out. By reaching out to a broader group of countries than has traditionally been the case, Argentina is also trying to change its relationship with the world in a way that will make it less vulnerable to the risks associated with market fluctuations, political instability and overdependence on a single market for its exports.

This growing international network of mining alliances is also giving the Argentine government greater geopolitical influence in a world in which access to critical minerals is becoming more and more important as a source of national power and industrial competitiveness. It is also worth noting that with the global demand at an all-time high and a strong will behind Argentina’s mining diplomacy, it is very likely that this momentum will continue in the years to come.

The road ahead

The Argentina-France agreement for mining cooperation is a very important milestone for bilateral relations which will benefit both nations in economic, technological, and environmental ways. The future will prove how the world is heading in the cleantech revolution, but already it is safe to say that there will be a very important role for a secure and sustainable supply of critical minerals. Argentina has already taken important steps to position itself to play that role and by now it is acting with proactivity.

The road ahead for both countries will require the best efforts of both parties to implement the announced measures, find attractive projects to be invested and financed, and manage the complex environmental and social issues that often accompany mining projects. If successful, the Argentine-French framework could well serve as a role model for other countries seeking to develop equitable and sustainable cooperation in the sector.

For Argentina, this agreement represents one more step in its ongoing process of economic revitalization through the development of its natural resources. For France, the agreement marks a very strategic move to help guarantee access to inputs essential to its green industrial transformation. Overall, this bilateral agreement is a symbol of both nations’ converging interests in the common struggle for a cleaner and more sustainable future for everyone. It also helps solidify the growing role of French mining companies in Argentina as the agents of this process of innovation and international cooperation.

As companies increasingly consider Latin America for nearshore manufacturing, industrial parks in Peru have emerged as strategic locations offering a compelling mix of cost competitiveness, infrastructure, access to international markets, and growing industrial ecosystems. For site selection consultants and corporate decision-makers evaluating global expansion opportunities, Peru presents several well-established industrial parks supported by favorable economic policies, strong logistics infrastructure, and a skilled workforce.

This blog post provides a detailed overview of the country’s most prominent industrial parks, infrastructure quality, labor availability, regulations, financial incentives, and operational costs—key factors for determining a suitable manufacturing location in Latin America.

Leading Industrial Parks in Peru

Peru’s industrial zones are mainly concentrated around Lima, Callao, Arequipa, and Trujillo. These areas offer access to large urban labor markets, major transportation corridors, and established supplier networks.

Indupark (Lurín, Lima)

Indupark, located in Lurín within the Lima metropolitan area, is one of the most modern and in-demand industrial parks in Peru. It spans over 250 hectares and offers Class A infrastructure with paved roads, drainage systems, perimeter security, and stable power and water supplies. Its proximity (35 km) to the Port of Callao—the country’s main seaport—and Jorge Chávez International Airport makes it ideal for companies needing efficient access to global markets.

Tenant mix includes multinational logistics operators, automotive parts manufacturers, food processing companies, and packaging firms. Indupark’s cluster benefits include shared infrastructure and synergies among firms operating in sectors like plastics, agroindustry, and light manufacturing.

MacrOpolis Industrial and Logistics Hub (Lurín, Lima)

MacrOpolis is another major industrial complex in Lurín with over 1,000 hectares planned for development. Backed by Grupo Centenario, the park offers built-to-suit and pre-leased warehouses and facilities with modern utilities, 24/7 surveillance, and broadband telecommunications. It hosts companies in consumer goods, logistics, and light industry.

The park’s long-term development strategy and integration with educational institutions aim to foster innovation and workforce training partnerships, an increasingly valuable asset for manufacturers seeking long-term talent development.

Parque Industrial La Chutana (Chilca, south of Lima)

La Chutana, located sixty kilometers south of Lima, is a large-scale industrial park with over five hundred hectares of developed land and expansion capacity. It features robust infrastructure—natural gas pipelines, potable water systems, and a connection to the national power grid. The park also benefits from a modern internal road network and planned rail links.

It is Ideal for heavy industry, chemical production, and energy-intensive operations, La Chutana attracts manufacturers looking for lower land costs outside the congested Lima metro while still benefiting from access to Callao and Lima’s labor pool.

Parque Industrial Piura Futura (Piura)

Situated in northern Peru, Piura Futura is a rising industrial park in Peru targeting agro-industrial and export-oriented manufacturers. Its location near key agricultural zones and the Paita Port makes it strategic for food processing, packaging, and cold chain logistics operations. The park is supported by the regional government and private developers seeking to decentralize industrial activity and attract foreign investment.

Zona Franca de Tacna (ZOFRATACNA)

Though not a traditional industrial park, ZOFRATACNA in southern Peru functions as a special trade zone with substantial tax exemptions and customs benefits. It supports assembly, manufacturing, and warehousing for companies exporting to Chile, Bolivia, and other Pacific Alliance members. The free zone offers valuable regulatory advantages for businesses focused on re-exporting or regional distribution.

Labor Availability, Cost, and Regulations

Peru has a young and growing labor force. Lima, the country’s capital, is home to over ten million people and provides a deep and diverse labor market for technical, managerial, and production roles. Secondary cities like Arequipa, Trujillo, and Piura also offer skilled workers and expanded industrial training centers.

Labor costs are competitive, with monthly minimum wages around USD $279 (as of 2025). Average manufacturing wages range from USD $400 to $800/month, depending on region, sector, and skill level, significantly lower than rates in North America. Peru has a 48-hour workweek and mandates social security contributions, bonuses, and severance pay.

Union activity is relatively moderate compared to neighboring countries. While labor laws protect workers’ rights to organize, unionization rates in manufacturing are not high, and industrial actions are infrequent. Nonetheless, compliance with Peruvian labor law is essential, and companies should budget for benefits such as annual bonuses (Gratificaciones) and Compensación por Tiempo de Servicios (Compensation for Time of Services), a severance savings fund.

Peru has invested in technical education through institutions like SENATI (National Industrial Training Service), which works closely with manufacturers to develop curricula aligned with industrial needs. Access to trained talent is particularly robust in Lima and the southern corridor.

Infrastructure: Transportation, Utilities, and Telecommunications

Peru’s central location on the Pacific Coast enables efficient connectivity with North America, Asia, and neighboring countries via the Port of Callao, one of the largest and most modern ports on the continent.

Freight costs to the U.S. West Coast are competitive, with typical shipping container rates from Callao to Los Angeles or Houston ranging from $1,500 to $2,300, depending on seasonal demand. Domestic trucking costs range from $0.08 to $0.15 per ton-kilometer, affected by terrain and congestion near urban centers. Peru has expanded its road network, especially the Panamericana Highway, connecting key industrial hubs to ports and borders.

Energy reliability has improved markedly. Industrial parks near Lima and Arequipa benefit from access to stable electricity grids, natural gas, and water supply. Renewable energy sources—especially hydroelectricity and solar—are being integrated, making the energy matrix more sustainable.

Telecommunications infrastructure is advanced in Lima and improving in other regions. Most industrial zones offer high-speed fiber-optic internet, 4G/5G mobile coverage, and enterprise-grade telecom services.

Tax Incentives and Business Climate

Peru offers a business-friendly regulatory environment. Corporate income tax stands at 29.5%, but special regimes and accelerated depreciation schemes are available for new industrial investments.

Companies in free trade zones such as ZOFRATACNA enjoy income tax exemptions, import duty relief, and streamlined customs procedures. Investments in manufacturing for export may qualify for temporary import regimes, which defer tariffs on raw materials and components. The National Superintendency of Customs and Tax Administration (SUNAT) offers digital tools to simplify compliance and reduce red tape.

Peru ranks above average in Latin America on the World Bank’s “Ease of Doing Business” indicators, particularly in starting a business, getting construction permits, and international trade.

Environmental regulations are handled by the Ministry of Environment (MINAM) and relevant sector agencies. Industrial parks typically assist tenants in obtaining required Environmental Impact Assessments (EIAs), and most offer integrated waste management and compliance monitoring systems.

Real Estate and Operating Costs

Lease rates for Class A industrial buildings in Lima range from USD $5 to $8 per square meter per month, depending on location, size, and build quality. Construction costs for new industrial facilities average between USD $500 and $750 per square meter, though costs can be higher for specialized infrastructure such as cold storage or cleanrooms.

Operating expenses, security, maintenance, lighting, and janitorial services—typically add $0.75 to $1.50 per square meter per month. Waste management services vary by park but average $100 to $250 per ton, with discounts for bulk or recurring contracts.

Additional costs such as facility management and 24/7 security are usually bundled into lease agreements in parks like Indupark and MacrOpolis, which offer fully managed environments to reduce administrative burdens on tenants.

Tenant Mix, Cluster Benefits, and Global Track Record

The most successful industrial parks in Peru host a range of global and regional companies in sectors such as automotive components, logistics and 3PL providers, food and beverage processing, plastics and packaging, and light engineering and electronics.

This diversity allows for cluster effects, including localized supply chains, talent pools with sector-specific skills, and shared service providers.

For instance, in Indupark and MacrOpolis, logistics companies co-locate with consumer goods and packaging firms, reducing freight costs and lead times. Parks like La Chutana specialize in heavy industry and energy-intensive manufacturing, attracting firms that benefit from proximity to gas pipelines and substations.

Many global brands—including Nestlé, Kimberly-Clark, DHL, and Arca Continental—have a strong presence in Peru’s industrial zones, highlighting the country’s reliability as a manufacturing base.

Conclusion

For companies engaged in nearshore manufacturing site selection, industrial parks in Peru offer a strong value proposition: access to competitive labor, robust infrastructure, favorable tax regimes, and reliable logistics. The country’s strategic Pacific location, improving regulatory environment, and expanding pool of trained labor make it an increasingly attractive destination for foreign manufacturers.

While Lima remains the dominant industrial hub, emerging parks in Piura and Tacna reflect a broader national strategy to decentralize growth and support regional development. Whether your client is seeking cost-effective production, access to Andean and Pacific markets, or alignment with ESG standards, industrial parks in Peru deserve thoughtful consideration in the nearshore location evaluation process.

The adoption of a robotics law could make El Salvador the first country in the world to do so

Salvadoran lawmakers have advanced AI and robotics policy in Latin America and around the world with a new initiative to regulate artificial intelligence and robotics. On February 28, the country’s Legislative Assembly approved the Artificial Intelligence Law, which sets the legal and regulatory foundation for the responsible adoption and use of AI technologies.

At the same time, the National Bitcoin Office of El Salvador (ONBTC) has also drafted a proposed Robotics Law, which could make the small Central American country the first in the world to regulate the use and development of physical AIs. The Robotics Law and the Artificial Intelligence Law are landmark initiatives that signal a major technological transformation for El Salvador.

The AI Law as It Stands

The Artificial Intelligence Law was approved by the Salvadoran legislature at the end of February and is expected to be put in place in the coming months, according to an official statement by the country’s National Bitcoin Office (ONBTC). ONBTC describes the legislation as “bold and progressive” and states that it is intended to make AI a practical part of the Salvadoran economy as soon as possible.

The new legislation will set out guidelines and standards for AI use in multiple sectors, including electric power, transportation, and national security. The AI law, which was spearheaded by ONBTC, provides a legal and institutional basis for the rapid and safe adoption of AI.

ONBTC has stated that the law, among other things, “aims to regulate the use and development of Artificial Intelligence with the goal of promoting its use for the benefit of Salvadoran society.” The law goes even further, ONBTC says, with a view to “permitting a rapid and responsible” adoption of AI across multiple sectors.

In March, Salvadoran government representatives, led by President Nayib Bukele, highlighted the advancement of AI and the broader technology sector as critical national priorities while also laying out steps to speed the adoption of AI. Among other things, the law will also establish an institutional framework, ONBTC said, as well as “research centers such as the development of intelligence laboratories and research centers” and the creation of a National Artificial Intelligence Agency (ANIA) that will, among other things, be responsible for monitoring compliance with the law.

The New AI Law Explained

El Salvador advances AI and robotics policy with the new AI Law, which has the following elements and key points:

Purpose. The law makes it clear that AI technologies must be applied for the public good and in a responsible way. “The purpose of this law is to regulate the use and development of Artificial Intelligence with the goal of promoting its use for the benefit of Salvadoran society, facilitating a rapid and responsible adoption,” the ONBTC explained in an official statement.

Scope. The law covers the use and development of artificial intelligence for both private sector and state actors. “Artificial intelligence is used and developed both by the State and by the private sector,” the law reads, adding that AI will be applied in government operations, including electricity distribution, electric transportation, and national defense and security.

Research and Standards. The law calls for the creation of “centros de investigación e inteligencia artificial” (research centers and artificial intelligence centers) and the development of a legal entity called the National Artificial Intelligence Agency (ANIA) to manage and monitor compliance with the law. ANIA will also facilitate compliance with other national standards and global best practices.

Permitting. Licenses will be required for AI development and application in a broad range of operations. The law also calls for ANIA to “regulate the authorization, supervision, control, and revocation of intelligence laboratories, research centers and/or centers dedicated to research, development, and experimentation of Artificial Intelligence, as well as those that have them as a support function.”

Expectations for the Robotics Law

El Salvador advances AI and robotics policy in a potentially groundbreaking way by also seeking to adopt a specific Robotics Law that, if passed by the Salvadoran legislature and put in place, would regulate the development and use of physical robots or AI entities.

According to the country’s ONBTC, the robotics law is intended to create a “clear, ethical and transparent” regulatory framework for the deployment of physical AI. “Physical AI refers to any form of intelligence that has a material dimension, such as drones, robots, or androids that may be used to interact with the environment or people,” ONBTC said, adding that the robotics law will be enacted before wide-scale commercial deployments of physical AIs.

The Onus is on El Salvador

Salvadoran lawmakers are taking an ambitious and risk-ready approach to AI regulation, and one that would, if successful, put the country at the very forefront of innovation. At this stage, the country already leads on AI policy in Central America and the wider Latin American region, having taken steps to make Bitcoin legal tender and create a robust infrastructure for its adoption.

El Salvador advances AI and robotics policy in a very significant way by taking steps to legislate its use. The development of AIs in all their forms, including the so-called “strong AIs,” is proceeding at a fast pace and will almost certainly be widespread before we realize it. Instead of waiting until then, El Salvador is regulating them before that happens and showing regional leadership in AI.

Peru has been attracting investments for projects in the Amazon in recent years, with the aim of positioning itself as a leader in the region in terms of sustainable development and environmental conservation. The country has identified 40 projects in the Amazon Basin, of which 13 are considered to be viable. In that sense, it ranks as the second country with the most projects in the Amazon Basin.

Camilo Carrillo, associate partner for infrastructure at EY Peru, shared some of the most promising investments in the Amazon region with The Peru Report. Among them are projects related to ecotourism, environmental conservation and protection, and biodiversity. One of them, with the most visibility, is the Choquequirao Cable Car project.

Choquequirao, an archaeological site in the Cusco region and considered the “sister city” of Machu Picchu, has been difficult to visit by traditional tourist circuits due to its difficult access. However, this would change with the arrival of the cable car.

There are also several projects related to tourism in other Amazonian destinations. For instance, cableways to be installed in Ahuashiyacu, Sauce Lake, or Gran Pajatén Archaeological Complex, among others, would allow a more comfortable way of accessing these places and generating tourism in them.

On the other hand, some projects in conservation and biodiversity have been listed, especially those with the status of protected natural areas. In this context, it is estimated that there are around 400 sites that receive this designation.

In Peru, 23 investment promotion entities are dedicated to promoting projects in the Amazon. Peru’s Amazon includes all projects implemented with public-private cooperation (PPP), as well as the preparation of studies and contracts carried out exclusively by the State and those in the project pipeline.

Economic Activities in the Amazon Basin

Agriculture, forestry, fishing, aquaculture, and renewable energies are among the main economic activities related to the Amazon. On the one hand, the production of coffee, cacao, medicinal plants, and other traditional or innovative crops is a sustainable practice that can be included in the exploitation of the Amazon basin.

Forestry is also a widely used resource and is beginning to be regulated. Sustainable timber production would be an option to promote, in the same way as the fishing and aquaculture activity has been, through sustainable fishing concessions and aquaculture projects.

On the other hand, as the region represents a great biodiversity and natural habitat of protected native species, eco-friendly and community-tourism projects are viable, especially in places that currently have no influx of visitors. Infrastructure projects in general are also essential, as they are key elements for long-term value generation for communities and investors.

Peru is the Second Country with the Most Projects in the Amazon Basin

In the most recent report “Profile of Public-Private Synergies in Environmental Assets: The Case of the Amazon Basin,” from the Inter-American Development Bank (IDB), Peru is highlighted as the second country with the most projects, just behind Brazil, but with the greatest development potential.

The report pointed out that while Brazil has the most projects identified in the Amazon with 104, followed by Peru with 40, the country with the most developed projects is Peru, which has 13, followed by Brazil with 11.

Projects that favor the development of the Amazon are growing in recent years in Peru. The National Institute of Natural Resources (INRENA) pointed out that between 1994 and 2021, the country’s total investment in hydroelectric projects in this region amounted to 1,295.1 million soles, of which 37.5% came from foreign companies.

Projects in the Amazon with Most Investment

The Amazon, the largest river basin in the world, covers about 7 million square kilometers, making it the largest drainage system on the planet. It encompasses parts of eight Latin American countries.

As a key component of the global ecosystem, it provides the environmental services that humanity depends on, including water regulation, the climate, and a home for an immense array of plants and wildlife.

Challenges for Investment Projects in the Amazon Basin

Projects in the Amazon Basin face a range of challenges in Peru. According to IDB, these include some that have a longer-term or more structural nature, such as legal and institutional uncertainties, lack of operational capacity, and environmental impact studies.

The presence of illegal economies is also one of the problems most often pointed out by different sectors and institutions. “There are illegal economies that are damaging the rule of law. Illegal mining, illegal logging, drug trafficking… in some cases, these activities continue to be present in the jungle,” said Camilo Carrillo.

The projects related to infrastructure for the mining industry are one of the areas that continue to develop the most despite these problems, according to Carrillo, who was invited as a guest of Peru’s National Society of Industries (SNI) to share information about the development of projects in the Amazon basin.

Private Investment Projects in the Amazon

One of the most significant points in the entry of private investment into projects in the Amazon region is the recent public-private partnership (PPP) projects in the tourism and mining sector. It has also included various conservation projects.

The government’s infrastructure promotion entities play a key role. Peru’s Amazon has a wide and diversified pipeline of projects promoted by 23 investment promotion entities dedicated to working in the country’s Amazon.

Juan José Cárdenas, an infrastructure expert, noted that in Peru, there are projects of this nature in sectors such as health and education, with significant execution of PPP projects. The same does not occur in protected natural areas or in projects that also contemplate mining exploitation.

Cárdenas said that a business model similar to PPPs in projects in the Amazon basin could work very well and help scale them up. One of the most important points is to begin to seek channels for moving private investments in this direction, which, added to good legislation, could be developed in the country.

In Brazil, institutions such as the Chico Mendes Institute for Biodiversity Conservation (ICMBio) have been key. In the case of this country, the environmental issues are also generated by the “large presence of the State in illegal mining and logging.”

Comparison with Brazil, the Only Country with More Projects in the Amazon Basin

Brazil is the country with the most developed projects. In comparison, according to Camilo Carrillo, Brazil has ICMBio, “which is a state institution that works very similar to what ProInversión is for Peru.”

Projects in the Amazon: Future Prospects

As previously mentioned, and according to EY Peru, a key point will be that Peru is expected to count on the support of different regional actors, governments, international cooperation and organizations, civil society, and the private sector.

Peru needs to take advantage of the opportunities, be aware of the barriers, and make decisions and policies to expand and increase access to sustainable finance in the country.

Peru’s priority in the Amazon will be to channel private investment in priority areas such as conservation, nature-based solutions, sustainable agriculture, environmental infrastructure, and responsible mining.

The future perspective on investment in projects in the Amazon is to generate innovative solutions to the environmental crisis by relying on private financing. This includes new instruments for environmental performance bonds and a guarantee fund. “Long-term financing and green bonds should be other types of instruments to start channeling the private sector,” said Camilo Carrillo.

In terms of legislative alignment, it would be relevant to link the financing of the projects with the creation of the High Climate Council or the Organic Law for the Amazon. However, it is indicated that Peru is not behind in this matter, but needs a relevant institution focused on the Amazon, similar to ICMBio in Brazil.