Investor Presentaiton
Fundamentals supporting Mexico's commercial RE sector
World merchandise trade recovery in 2021
Index, 2015-100
140
130
120
110
100
90
80
70
60
50
40
2002
2003
2004
2005
2006
2008
2009
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Optimistic scenario
Trend 2011-2018
Pessimistic scenario
Merchandise trade
Trend 1990-2008
Source: World Trade Organization
Auto parts sector set for recovery in 2HQ20
Producción de Autopartes en México 2019 VS 2020
Miles de Dólares
9,000,000
000,000
7,000,000
6000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Marzo
Julio
прод
Source: INEGI and Industria Nacional de Autopartes
Septembe
Octubre
Dicembre
97,834,435
-28%
ZZOZ
70,877,838
2020
MACQUARIE
Near-shoring of manufacturing supply chains
⚫COVID-19: The pandemic has highlighted how disruptions in supply
chains can cause production shortages. Near-shoring to Mexico
mitigates this risk by moving suppliers closer to the end consumer
market and can avoid the need for shipment by air or ocean transport.
•Safety stock: As a result of COVID-19, warehousing of safety stock
inventory to increase resiliency is now poised to take preference over
"just-in-time" lean inventory practices.
⚫ US-China: Increasing political and security tensions has resulted in
Chinese imports incurring higher cost and less reliability of supply.
⚫USMCA: Formalization of USMCA on 1 July 2020 consolidates
Mexico's competitive export status in the North American market and
encourages more regional production content.
• End-user preference: Increased need for customized and timely
supply.
Growth industries
• Ecommerce logistics: Increasing penetration of Ecommerce to drive
demand for logistics real estate with a focus on servicing major
metropolitan markets.
• Cold storage logistics: Growing Ecommerce, evolving consumer
preference, increased stringency of food safety regulations and,
technology efficiency gains expected to drive the cold storage supply
chain.
⚫Medical device manufacturing: Reduced reliance on China,
nearshoring and ageing population to accelerate medical device
manufacturing.
• Electronics manufacturing: Electronics supply chain is experiencing
structural changes due to competitive tensions between US and China
resulting in increased tariffs for Chinese exports and overall less security
of supply.
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