Business owners in Durango have begun investing in or seeking growth opportunities in Coahuila and Nuevo León due to the economic conditions facing the state, stated Mauricio Holguín Herrera, president of the Mexican Business Council (CEM).
The leader explained that the state’s economic outlook is going through a difficult period, reflected in business closures and a decrease in commercial activity. “Nearly 50 percent of businesses in the city center report that their finances are not doing well, they are not stable.”
He pointed out that there is even a possibility that more establishments will close during the first half of the year. “The Durango economy is not favorable for businesses, according to the statistics. What we, as business owners, are looking for is the opening of new businesses, growth, and the hiring of new people to generate reliable sources of employment.”
Holguín Herrera stated that the situation is due to a combination of factors affecting not only Durango but the entire country, including insecurity and economic uncertainty. “We are facing a complex combination of factors, not only in Durango, but throughout the entire country.”
He added that the perception of insecurity also impacts sectors such as tourism, reducing economic activity. “The insecurity factor and the signals it sends internationally are that we are a violent country, and so far, that has not been reversed.”
The business leader indicated that, given this scenario, some business owners have found better conditions for growth in other states. “There are other states that are growing, and many Durango business owners are finding opportunities in Coahuila and Nuevo León that Durango is not offering them.”
Among the state’s main disadvantages, he mentioned the high costs of connectivity and transportation. “Durango has remained uncompetitive for many years simply due to connectivity issues. Transporting products to and from Durango has always been very expensive.”
He added that factors such as the cost of highways, limited air connectivity, and difficulties in moving goods affect competitiveness. “The products we bring to Durango sometimes cost twice as much as the freight due to round-trip shipping.”
Holguín Herrera also explained that the lack of industrial development has limited the state’s economic growth. “Durango hasn’t yet taken off in the industrial sector as has been expected for many years,” he said, adding that this situation causes business owners and professionals to seek opportunities outside the state.
“Many graduates leave with some training and end up doing jobs for which they are overqualified,” the businessman stated, adding that professionals in the technology sector are the ones who migrate most frequently to other regions of the country. “Most technology graduates seek opportunities abroad because they are better paid in places with more industry.”
Source: oem
