Amazon bets on Mexico with millionaire investment and thousands of jobs

During the last year, Amazon has made a significant investment in Mexico, reaching 28 billion pesos, consolidating its presence in the country and reaffirming its commitment to the Mexican market.

This investment has had a direct impact on job creation, with 10,000 direct and 40,000 indirect jobs. In addition, since its arrival in Mexico nine years ago, the company has invested a total of 110 billion pesos, demonstrating its long-term commitment to the country.

In the report "From A to Z. Amazon's Impact in Mexico", highlights that 25% of this investment was made in 2023, reflecting an acceleration in the company's growth in the country.

Amazon's investment has been strategic, focusing on logistics infrastructure with more than 13 shipping centers, three logistics centers and 24 delivery stations across the country. 

In addition, this year it opened two shipping centers, one in Apodaca, Nuevo León, and another in the Guadalajara metropolitan area, strengthening its capacity to meet the growing demand of the Mexican market.

Amazon is also investing in technology through Amazon Web Services (AWS), with data centers in the testing phase in Querétaro and an investment plan of more than 85 billion pesos in the coming years.

This focus on infrastructure and technology reinforces the strengths of the Mexican market, such as its strategic location and growing e-commerce market. Mexico has positioned itself as a key point for logistics expansion for large companies due to its proximity to the United States and its trade agreements. 

Amazon's investment demonstrates that the country offers an environment conducive to business growth, supported by a young and skilled workforce. 

Growing infrastructure, such as shipping centers and data centers, not only improves Amazon's operational efficiency, but also opens up opportunities for other companies looking to modernize their logistics and technology operations.

However, despite these strengths, the Mexican market also faces weaknesses that could limit its ability to attract more such investment. Bureaucracy and regulatory challenges in certain regions can delay project development, while a lack of transportation infrastructure in more remote areas limits the scope for logistics expansion. These constraints could affect Amazon's ability to continue to expand efficiently across the country.

The opportunities for the Mexican market are clear. Investment in technology, especially in cloud services such as AWS, has the potential to accelerate digital transformation in various industries. This allows local companies to improve their competitiveness and access advanced tools that were previously inaccessible. In addition, the growing demand for e-commerce in Mexico presents an opportunity for Amazon and other companies in the sector to expand their customer base and generate more jobs. This trend could trigger further economic growth, benefiting both consumers and businesses.

However, the market also faces threats that could hinder its development. Insecurity in some regions of the country remains a risk factor that could deter international companies from expanding their operations. In addition, competition in the logistics and technology sector is on the rise, which could put pressure on Amazon to maintain its competitive edge. If other companies manage to develop more agile infrastructures or business models more adapted to the local market, Amazon could face challenges to maintain its dominant position.

The distribution of Amazon's investment by entity reflects a focus on the regions with the greatest economic potential. Mexico City has received 50 billion pesos, followed by the State of Mexico with 27.5 billion pesos and Querétaro with 7.5 billion pesos.

This underscores that large cities and key industrial zones are the main focus of growth, where Amazon's infrastructure is expected to drive local economic development. However, it is necessary to consider that some less developed regions, such as Yucatan or Sonora, have received more modest investments, which could limit their access to the economic opportunities generated by this expansion.

In terms of job creation, Amazon has had a significant impact on states such as the State of Mexico, with more than 3,150 direct jobs and 10,000 indirect jobs, and Mexico City, with 3,000 direct jobs and 18,000 indirect jobs. Job creation not only benefits the local economy, but also strengthens human capital in key sectors such as logistics and technology. However, the challenge lies in ensuring that these job opportunities are sustainable and that workers receive the necessary training to adapt to the technological advances that the expansion of Amazon and other similar companies bring with them.

Amazon's expansion in Mexico represents both an opportunity and a challenge for the market. While the country has strengths such as its strategic location, growing infrastructure and a labor market willing to adapt, it also faces weaknesses and threats that could limit the impact of these investments in the long term.

The key to success will lie in the ability of government and the private sector to address these challenges by creating an enabling environment for the continued development of infrastructure, technology and human capital.

Collaboration: Editorial Auge.