The location of a business is decisive for its success and competitiveness. Installing within an Industrial Park has multiple advantages compared to individual facilities.
An industrial park is basically a zoned and planned area with the purpose of developing specific industries inside it. An industrial park can be thought of as a more complex version of a business or office park, something that already exists in several Central American countries.
With the rise of industrial parks, more and more companies have begun to realize the importance and value that this concept can provide to them, to the investors, and to the economy of a country. Industrial parks have played an important role in the development of growing countries.
Below we will discuss some of their advantages and the reasons why the demand for these parks is increasing.
The benefits of industrial parks
In times of crisis such as a pandemic, the need to resurrect the economy is undeniable. Although the advance in vaccination and the relaxation of restrictive measures give oxygen to the industrial sector, there is little room for innovation and the manufacturing industry continues to be the main economic growth point for the Central American economies.
With the data available until 2017, it has been verified that the contribution to GDP of the industrial sector remained at 27% of GDP. Industry, especially manufacturing, has an important share in the generation of regional employment, up 22% during the same period.
But it has been proven that having a defined space to promote the development of this industry, or others, is key to its growth. It is in this context where the importance of industrial parks lies.
Good examples are the parks developed by GK, leader in the textile industry in Central America, in different spaces, such as Green Valley Advanced Manufacturing Hub, Zoli Pride Industrial Park, or the Consorcio de Servicios de Campeche located in Mexico.
The 5 benefits of being within the Green Valley Advanced Manufacturing Hub:
Industrial parks are quite flexible. One of the main advantages that industrial parks have over other types of real estate construction is that many of them, if not most, are flexible or easy to reconfigure.
Industrial parks can include a combination of production, transportation, and storage facilities in the same area. This can include chemical plants, plastics manufacturers, food and beverage processors, or steel manufacturers.
Industrial parks are not only running for the benefit of local industry. This type of real estate project benefits the country in two ways. The first, if its complex houses local industries that can be developed. The second, if the country’s industry is still not strong enough, it can still benefit indirectly by attracting foreign investment and leaving foreign currency in the national treasury.
All continents have a certain niche and competitive point of view that they offer to international and foreign investors. For example, Central America is considered one of the fastest growing regions, with expanding infrastructure and a significant amount of natural resources. Something not inconsiderable.
The proximity of one industry benefits the next. The finished product of a specific sector can be the raw material of another. Since both industries would be located within the same complex, this results in reduced transportation and implementation costs.
The proximity also relieves the industrial leaders. The initial investment is low and all basic infrastructure and support facilities are readily available. Therefore, entrepreneurs can focus all their attention on the business and focus on its growth.
Greater job creation. Industrial parks create more job opportunities and increase labor mobility. Since many of the units are labor intensive, there are opportunities for both skilled and unskilled workers.
Something to think about for investors in the region at a time of significant economic challenges.