Why did many industries move away from central Mexico City?

Many industries have moved away from central Mexico City primarily due to government intervention aimed at mitigating severe air pollution. During the 1990s, authorities forced various industrial enterprises to either relocate or cease operations entirely to address environmental concerns within the Federal District.1

Beyond these regulatory pressures, industrial activity has become more dispersed throughout the country for several additional reasons:

• Strategic Decentralization: The government has actively encouraged the dispersal of factories away from the Mexico City megalopolis to reduce the concentration of industry in the capital.2
• Growth of Maquiladoras: The rapid expansion of maquiladoras—export-oriented assembly plants—has drawn investment toward northern border states and other regional centers, where companies can take advantage of lower labor costs and different regulatory environments.12
• Regional Competition: Other cities, such as Monterrey, have emerged as significant manufacturing hubs, providing viable alternatives to the capital.1
• Economic Shifts: Within Mexico City itself, the economy has seen a transition where the share of manufacturing employment has declined relative to the growth of service-oriented jobs.1