Title
Phoenix-Hermosillo Trade Office Results and Update - Citywide
Description
This report details Phoenix-Hermosillo Trade Office results for Fiscal Year (FY) 2024-25 and gives an update to the Economic Development and the Arts Subcommittee.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Report
Summary
The City's first Hermosillo, Mexico trade office opened in 2017 to support Phoenix companies interested in working with Mexico, and to attract Mexican companies and investors looking to expand to the United States. Mexico is Arizona's top trading partner with $8.9 billion in exports and $11.6 billion in imports in 2024. This activity is expected to grow as the on-shoring trend continues to bring manufacturing back to North America. The Mexico trade office has been effective and yielded significant growth and activity between Phoenix and Mexico in FY 2024-25.
The Phoenix-Hermosillo Trade Office assisted over 200 new companies from Mexico last year. Cross-border activity increased with many of the companies assisted in FY 2023-24 returning with interest to establish a physical presence in Phoenix. Interest from delegations visiting Phoenix has continued to grow and the City has hosted multiple delegations. The Hermosillo Women in Business delegation returned with 24 women small-business entrepreneurs seeking to learn more about the Phoenix market. Community and Economic Development also sponsored the USMCA Forum Series led by Greater Phoenix Leadership, Phoenix companies learned more about the trade environment and discussed obstacles and opportunities of future negations of the USMCA.
Discover Phoenix LLC, now in the third year of its five-year contract, continues to deliver a large amount of activity and interest to the City of Phoenix. This fiscal year, a large amount of investors and companies from Mexico expressed interest in investing in development projects throughout the City. Staff conducted multiple tours and presentations of the market receiving on average two or more visits each month. The City co-hosted with the Arizona State University Thunderbird School of Management the U.S. Mexico Semiconductor Collaboration Forum: Advancing Subnational Priorities and Strengthening Bilateral Collaboration here at Phoenix City Hall. This was attended by hundreds of private sector, state and federal government, and academia representatives from Mexico all focused on strengthening and advancing the semi-conductor industry regionally. As a result of efforts this year, multiple companies incorporated in Arizona and two companies physically located operations in Phoenix, Alucorp, a window and door manufacturer expanding from Hermosillo and Bicentel LLC, a fiber installation company from Mexico City.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.