‘The 500 most important companies in Mexico’ generated cumulative sales of 20.5 billion pesos in 2021, but although they are the largest companies in the country, they are not distributed in the same way among the states; in fact, 90% of the firms are concentrated in Mexico City, Nuevo León, Jalisco and the State of Mexico.
These states are characterized by their great diversity of businesses, generating the highest Gross Domestic Product (GDP) in addition to having a greater concentration of the population.
The entities with the most sales of ‘The 500’ register the highest levels of contribution to the national Gross Domestic Product (GDP): Mexico City contributes with 15.8%, while the State of Mexico participated with 9.1%, followed by Nuevo León, with 8%, and Jalisco, with 7.3%.
It is no coincidence that companies have their headquarters in these states, among the factors they seek is an environment where their sales are potentiated through greater infrastructure, high levels of education, public safety, regulatory improvements and access to air, rail and land transportation. .
“Decision makers in Mexico need tools to identify the areas in which action must be taken to raise the quality of life, promote a healthy business environment, and promote sustainable development in the 32 entities of the country,” said the Institute. Mexican for Competitiveness (IMCO) in its 2022 State Competitiveness Index (ICE).
After the large state economies are, in the participation of ‘The 500’, the states of Sinaloa, with 2%; Puebla, with 1.2%; Coahuila, with 1%, and Guanajuato, with 0.9%.
By region, in the center of the country (CDMX, Edomex, Guanajuato, Hidalgo, Morelos, Puebla and Querétaro) 70.2% of sales were accumulated, while in the north (Baja California, Chihuahua, Coahuila, Nuevo León, Sonora and Tamaulipas ) was 21.1%.
In the center-north (Aguascalientes, Baja California Sur, Colima, Durango, Jalisco, Michoacán, Nayarit, San Luis Potosí, Sinaloa and Zacatecas) it concentrated 7.5% and only 1.2% went to the south (Campeche, Quintana Roo, Veracruz and Yucatan).
Poor distribution of wealth in the country
On the other side of the coin there are states that have no participation with any company in ‘The 500’: Chiapas, Guerrero, Oaxaca, Tabasco and Tlaxcala.
This situation is reflected in the priority that the federal government, especially in the four years of administration by President Andrés Manuel López Obrador, has given to the development of southeastern Mexico with projects such as the Mayan Train and the Dos Bocas refinery, a commitment for the reactivation of the region to attract more investment from national and international private companies.
Although in recent years, some works have been involved in social and environmental conflicts, due to the fact that it crosses indigenous communities and a region with a lot of biodiversity, the projects are still underway.
“What is observed is a fragmented country: while in the north work provides families with higher income and they have, on average, more access to health, the opposite happens in the south,” the IMCO mentioned in its report.
The 2022 ICE highlights that Mexico City ranks first, while Guerrero remains the least competitive entity since the 2010 ICE, with a low level of competitiveness.
Some of the key variables within the index are the perception of security, perception of state corruption, educational coverage, state income, regulatory improvements, internet access, flow of air passengers and investment.
How can it be improved?
IMCO proposes four important points for states to be competitive and to attract more talent and investment.
The first of these is to identify the roots of informality in the region, whether it is the prevalence of informal companies or the non-compliance with labor rights by companies that do comply with other fiscal responsibilities; second, to adopt practices to attract the talent of more women, both in the public and private sectors, through internal policies of work-life integration, employment equality and non-discrimination.
Third; reform the social security system to reduce the costs that companies face when formalizing their employees and complying with tax obligations, and fourth, generate a business environment with favorable conditions for investment in the country, both nationally and internationally, through the compliance with the rule of law and economic stability.
The most important companies in the states
Among the companies that lead sales by state is Pemex, with an 11% share of the total revenue generated by ‘The 500’ in Mexico City; Mexican Economic Development (FEMSA), with 15% in Nuevo León; Honda, with 17% in Jalisco, and Orbia, with 33% in the State of Mexico.
“The most competitive entities attract more talent and investment and offer better working conditions, that is, a competitive state generates the necessary conditions to raise the quality of life of workers,” added the IMCO.
Some of the companies that ‘show their faces’ and that represent 100% of the state total of their participation in the ranking are Nabors Perforaciones de México (Campeche), Grupo Marítimo Industrial (Colima), Greenbrier México (Hidalgo), Caminos y Puentes Federales (Morelos), Cinépolis (Michoacán), Vidanta (Nayarit), Chedraui (Veracruz) and Bepensa (Yucatán).
