After decades of stagnant economic growth, San Luis Potosí is once again striving to become a popular destination for business and investment, just as it once was.
More than four centuries ago, San Luis Potosí was founded as a mining city, serving as capital to the colonial intendencia of the same name: a huge amount of territory starting in central Mexico and covering part of nowadays Texas and Arizona, limited to the East by Louisiana. Privileged with an exceptional geographic location, the city soon became a hub for commerce, trading, mining and agriculture. Haciendas to the North, mines to the East and West and a valley ideal for cattle raising to the South made San Luis a renowned city for investing and making business.
As Mexico became a more industrialized economy, so did San Luis Potosí. Railways were laid, connecting Mexico City, San Luis Potosí, Monterrey and finally crossing the border into the United States: San Luis Potosí then became a rail hub. Cargo and passengers came together from every direction and San Luis connected not only the most important cities in Mexico, but also the ports on the Gulf and the border with the United States.
Although passenger trains are no longer used in Mexico, San Luis’ location is still relevant: the city is just 415 km from Mexico City, 370 km from Guadalajara and 500 km from Monterrey. San Luis Potosí is therefore located in the economic center of Mexico.
Alongside Aguascalientes, Querétaro and Guanajuato, San Luis has an important role in developing the Bajío region: both domestic and foreign investment have turned the area into a powerhouse for the manufacturing, automotive and auto parts, and even the mining industry.
Location as well as planning and promotion have allowed San Luis Potosí to average a 4.4% annual GDP growth from 2010 to 2016: one point – and some years even two – above the national GDP. As a result of this economic growth, the Secretariat Of Economic Development estimates that the workforce in San Luis has grown from 1.04 million in 2011 to 1.19 million in 2016, meaning that 42.7% of the total population is employed.
Coming together for a single goal
But location and planning aren’t the only factor propelling San Luis’ growth and consolidation as one of Latin America’s Cities of the Future as ranked by The Financial Times’ fDi Intelligence magazine.
The most important factor has been the team work and cooperation between the business leaders and the business community with the State’s Government which has resulted in stability not seen for decades. Attracted by this stability and growth, many national and international companies are opening up in San Luis Potosí: last year alone foreign investment reached 834.4 million dollars and exports hit 10.47 billion dollars in 2016.
San Luis today is very different from what it was just 10 years ago: companies from all over the world operate in the State, and even though San Luis relies heavily from both investments coming from the US and exports shipped to the US, economic ties with other regions are strengthened year after year. In 2016, for example, 46 Japanese companies where present in San Luis Potosí, compared with only 3 in 2009, and around 50% of the FDI coming into San Luis each year has come from European companies.
All these development and growth has a direct impact on the people of San Luis Potosí and not only when relating to jobs and economic well-being: the cultural exchange between the people from San Luis and those who are moving into town is beginning to create a multicultural mosaic that will bring a different vision for the future of the city and the State.
Today the people of San Luis Potosí have a challenge: change their mindset and work hand-in-hand with the expats coming to work in San Luis. Make them feel welcome into our city and our country and make the most of this historic opportunity to transform San Luis into a point of reference for other cities in Mexico and Latin America.
Together, we can create a vibrant, dynamic and inclusive society deeply rooted in cooperation and understanding, showing the world that economic and social development should be but one and the same.
It is definitely a good time to be in San Luis Potosí.
