What are the costs, benefits of the Phoenix-Hermosillo trade office?

The Phoenix City Council will be asked to fund a trade office in the Mexican state of Sonora for three more years.  

The Phoenix-Hermosillo trade office works with Mexican companies looking to develop business in Phoenix and vice versa. 

Juan Batres, who manages the program, said last year they assisted 294 companies.

“As a result of that, five companies incorporated their entities in Arizona. Today, they are developing business and transacting in Phoenix. And the four companies physically located operations here – from software development services to a microbrewery concept," Batres said.

According to the city’s economic development department, the trade office worked with MCI Woodwork to expand operations from Glendale to Phoenix. Three Mexican companies located to Phoenix in fiscal year 2023-24: American Pneumatic Air Systems, Buqui Bichi and Gila Software. 

Batres said the office has researched industrial regions in Mexico to better understand production capacities for legacy industries like aerospace and defense and emerging industries like food innovation and semiconductors. 

Economic development director Christine Mackay recently asked the council’s economic development subcommittee to support a three-year contract, rather than renewing a contract on an annual basis.

 “The work that we're doing in the North American supply chain sourcing, the work that we're doing in electric and e-mobility, the work that we're doing throughout the entire country of Mexico really requires a strategy that is more than just year to year, is allowing us to continue to push and work with our entity for the three additional years,” she said.

The subcommittee recommended the City Council approve the $510,000 contract. If it does, the office will stay open three more years.