Where to be and why: the science of strategic localization in Latin America

Location has never been so strategic for Latin American companies. In a world where talent is scarce, logistics costs are critical, and competition for customers is intensifying, the choice of where to install offices, industrial plants, distribution centers, or stores can determine the difference between business growth and stagnation.

The rise of localization consulting responds precisely to this need. Through data analysis, predictive modeling, and socioeconomic studies, companies conduct comprehensive location assessments for retailers, select optimal sites for industrial parks, and determine the strategic location of corporate offices. These decisions are based on a comprehensive assessment of factors such as access to talent, operating environment, cost of living, energy resilience and risk management.

Success stories abound in the region. A technology company in Buenos Aires selected its new headquarters after a rigorous placement strategy process focused on talent, prioritizing proximity to universities and public transportation areas. The analysis included an assessment of the impact on employee commute times and associated carbon emissions, resulting in a significant increase in the attraction of young professionals.

In Mexico, a retail company designed an expansion strategy based on predictive analytics and a market scoring matrix, which allowed it to reduce logistics costs by 15% and evaluate more than 100 potential locations for its long-term growth plan.

The selection of business headquarters is currently understood as a long-term strategic decision, where factors of comprehensive urban planning and sustainable urban development converge. Regional governments have also positioned themselves as key actors by defining urban land use policies, establishing tax incentives, and granting permits for mixed urban developments that integrate commerce, housing, and services in a harmonious manner.

In conclusion, the strategic location of industrial plants, offices or commercial establishments transcends secondary considerations: it constitutes a critical decision that defines the competitiveness of companies in the dynamic Latin American market of the future.

Our Specialized Approach

JLL's teams of experts work to identify the ideal location for each company, analyzing their specific needs and strategic objectives. The firm evaluates and compares locations considering key factors such as talent availability, operating environment, risk management and cost structure, using reliable data and the most advanced technological tools in location strategy in the market.

Learn more about our service with María del Carmen Tabin – Portfolio Services GLA Team– mdc.tabini@jll.com