Other industries

i. Construction

A strong component of the state’s economy is the construction industry, resulting from its close links to the tourism and service sectors.  The construction industry’s contribution to state GDP has been on a constant incline in recent years, increasing from 0.05% of state GDP (approximately US$26.9 million) in 1993 to 0.09% of state GDP (approximately US$133.6 million) in 1999.[1] While this is so, construction workers earn some of the lowest wages in the state, as many of the laborers have been driven out of local agricultural areas or have migrated from other areas of Mexico and Central America.  The workers are an inexpensive labor force for the industry as they are willing to work for wages that do not allow for a decent standard of living.[2] 

ii. Manufacturing

The manufacturing sector of Baja California Sur has experienced only modest development in recent years.  Although manufacturing is not in direct decline, it has not developed significantly due to a lack of raw materials, as well as increased market specialization. The manufacturing sector contributed 6.08% of state GDP in 1993 (US$35.2 million), while its contribution in 1997 was of 7.13% (US$106.3 million).[3]

Almost half of the manufacturing sector is concentrated in the municipality of La Paz, with 553 of 1,340 registered manufacturing units.  The sector consists mainly of small businesses, 91.5% of which have less than ten employees, and 55% have less than two.  The number of larger maquiladoras has actually decreased in recent years, shrinking from eleven to eight between 1990 and 1999.  However, the number of jobs within the sector during the same time period actually increased from 959 to 2,695, peaking at 2,703 in 1997.[4]

iii. Mining

Presently, Baja California Sur is involved in a large number of mining operations, as the state is rich in a variety of natural resources.  These include the largest salt mines in the world in Guerrero Negro, as well as the largest deposits of world-class quality calcium sulfate in the country.[5]  Presently, the state is not a significant producer of metal ores, although in the past it was the country’s most important copper producer,[6] and provided a significant contribution to economic development in the region and country by generating jobs and providing raw materials for other industries.[7]  Santa Rosalía and La Paz both experienced mining booms during the early part of the 20^th century that fueled economic growth.

Recently, however, the mining sector has suffered proportionate reductions as a percentage of state GDP, most notably between 1988 and 1993 (see Table 12).[8]

iv. Cattle raising

Cattle raising is a relatively common line of work for people living in the rural areas of the state, and is boosted by immigrants from other parts of Mexico and Central America who are willing to work for low wages.  The main products of the agricultural and cattle raising industries are pasteurized milk (fresh and packaged), various kinds of cheese (cotija, asadero and panela), yogurt in different presentations, corn and wheat flour in different presentations, chick peas, beans and packaged tomatoes, sweets and preserves, juices, tortilla and purified water, as well as feed and grains for meat- and milk-producing cattle.[9]

A recent development in this sector is dairy production, primarily from goats, which is boosting locally-generated livestock products. Seventy percent of these products are currently imported from other parts of Mexico.  In addition, the state is well-suited for goat herding, which is more sustainable than cattle production because of the inputs needed for cattle.