Read the Conversation
Meeting highlights:
- Strategic Vision & Growth: La Lima Free Zone was established in Cartago to leverage the workforce, marking a decade of steady expansion built on prior success with other industrial parks.
- Differentiation Through Talent: Costa Rica’s highly skilled labor force enables advanced manufacturing processes that cannot be replicated in lower-cost markets without compromising quality.
- Policy & Free Trade Zone Advocacy: The free trade zone regime is essential for Costa Rica’s global competitiveness. We need to strengthen it to keep up with other countries that are ramping up their FDI attraction mechanisms.
- Sustainable Ecosystem: Costa Rica offers a truly sustainable industrial environment, socially, economically, and ecologically, ensuring long-term value and resilience for investors.
- Investing in Costa Rica: Investors are encouraged to visit Costa Rica and experience firsthand the strength of its ecosystem, where the country itself becomes the clearest case for investment.
EF: It's been 10 years since the start of La Lima. You've achieved remarkable growth throughout this decade. Could you elaborate on the journey and the strategic decisions that were most pivotal and critical in shaping the park's identity?
FC: To provide context for our decision to establish our latest park in Cartago, it is helpful to reflect on our history as pioneers in the development of free trade zone parks in Costa Rica. We were responsible for the creation of Global Park, one of the country’s first such developments, followed by Flexi Park, and later the Coyol Free Trade Zone.
As Coyol approached full capacity, we began searching for a new location that would offer less competition for labor among companies and more favorable attrition rates. Cartago emerged as the ideal choice, largely due to its demographic profile and the strong sense of community among its residents. Many individuals from Cartago are highly skilled and prefer to remain in their home province, even though a significant number, between 130,000 and 140,000, commute daily to work in other regions such as Coyol, Heredia, or San José. These are not entry-level workers; they are experienced professionals employed by multinational companies.
Once we secured a suitable site of approximately 800,000 square meters, we launched our campaign with the slogan, “Talent is our neighbor.” This message resonated strongly with multinational firms, as proximity to skilled talent is a decisive factor in operational success.
In Costa Rica, constructing a high-quality facility is achievable for any developer. True differentiation comes from being located near the right talent pool. Lower attrition rates directly impact costs, productivity, and expansion decisions. In retrospect, our strategic focus on Cartago and its talent was the most critical decision we made a decade ago when seeking a new location.
EF: As companies invest in the country, they require talent. What is the opportunity that you identified?
FC: Through our census work in Cartago, we discovered residents were spending an average of 2.5 hours commuting daily, with 5% to 7% of their salaries allocated to transportation. This significantly impacted their quality time at home.
When we launched, our first client was a medical devices company. During negotiations, we assured them they would have access to an exceptional talent pool. To validate this, they requested a recruitment test for ten positions. We organized an event on a Friday, setting up a tent in the parking lot. Early that morning, I received a call from the park administrator, followed by a photo showing an applicant line stretching several hundred meters—an overwhelming response.
We received 3,500 applications for just ten openings, and these were individuals already employed, seeking better opportunities and quality of life. The company was able to select top-tier talent, and this success attracted further investment. Today, our attrition rate remains below 10%, currently around 8%, in contrast to other Costa Rican development hubs where attrition is more than double, often exceeding 20%.
EF: Could you elaborate on the portfolio of organizations currently at the park? What is La Lima’s value proposition for advanced manufacturing and life sciences companies?
FC: Currently, approximately 85% of our tenants operate in the medical device sector. This concentration reflects the broader national trend, as Costa Rica has established itself as a prominent medical device cluster, attracting significant international interest. Our participation in major trade fairs and conventions, such as Médica in Düsseldorf and MD&M in Anaheim, has reinforced this positioning.
While our focus has naturally aligned with the medical device industry, we remain open to hosting companies from other sectors. For example, Lutron, a global leader in lighting technology, has a manufacturing facility within our park. This demonstrates our flexibility and capacity to support diverse industries. Zollner is another example. They are our Anchor company of German origin that manufactures PC boards and lighting controlers for Electric cars.
Being part of a cluster offers distinct advantages. There is a high level of collaboration among companies, facilitated by shared resources and operational synergies. For instance, general managers in the park frequently communicate and support each other with materials and expertise, enhancing overall efficiency.
Although the park was not initially designed exclusively for medical devices, we have adapted to meet the evolving needs of the market and our tenants. Our adaptability, combined with the collaborative ecosystem, strengthens our value proposition and ensures we remain responsive to industry trends.
EF: Can you elaborate on the key factors that have contributed to La Lima's strong market position over the past decade, and how these advantages are shaping your future expansion plans in Cartago?
FC: La Lima has established a strong market position over the past decade, achieved through consistent brand exposure, active participation in industry conventions and fairs, and by hosting prominent companies within the sector. Our location in Cartago, distinct from other industrial zones, has also proven advantageous. When companies evaluate Costa Rica as an investment destination, they often seek to understand the unique attributes of each location. Conversations with executives from established firms frequently highlight our favorable attrition rates, which have been a decisive factor for many.
Looking ahead, we anticipate that the current park will reach full capacity within the next two to three years. In response to sustained demand, we are proactively acquiring land to develop an additional park in Cartago. Our experience has shown that remaining close to the region’s talent pool is essential, as evidenced by the continued reinvestment from our tenant companies. La Lima distinguishes itself as the only park in the country offering office space in addition to manufacturing facilities.
EF: What role are you playing, both personally and through La Lima and your developments, in advancing Costa Rica’s positioning in the world?
FC: The OECD certification and recognition provided us with significant global exposure. As a member of the board of directors for both the Costa Rican Association of Free Trade Zones and the Association of Free Trade Zones of the Americas, I witnessed firsthand the immediate and positive response from our peers and partners. We received numerous messages and emails congratulating us and acknowledging the importance of this achievement for Costa Rica’s international positioning.
This recognition was a proud moment for the entire region. In a world that is increasingly polarized, particularly between the East and the West, it is crucial for Latin America to demonstrate its reliability as a partner. The United States, in particular, has a vested interest in the region’s success. This certification elevated not only our park but also the country’s profile on the global stage.
The significance of this accomplishment was further underscored when the President highlighted it in his weekly briefing, sharing a video about the certification and emphasizing the importance of aiming high and seeing ourselves as global players. This experience has been both motivating and a reminder of the responsibility we carry to continue driving progress.
EF: What are the key achievements you would celebrate from the past 10 years of La Lima’s journey?
FC: One of the achievements I value most is the exceptional team I have the privilege to work with. Their dedication has fundamentally shaped our success. I am also grateful for our clients, who, regardless of their final decisions, have consistently recognized the transparency that defines our negotiations and agreements. When companies visit us, they experience a genuine sense of community and have the opportunity to engage directly with general managers already operating within the park. This openness and peer feedback often inspire confidence and a desire to join us.
Above all, I take pride in the strong, trustworthy reputation we have built. For companies making significant investment decisions, sometimes involving tens of millions of dollars, we have established Cartago as a reliable and welcoming destination. We are recognized for our fairness, humanity, and commitment to community, which I believe is our greatest strength.
EF: You mentioned you're attracting clients, but why is a dollar invested in Costa Rica better invested than in another country?
FC: The true value of an investment also lies in business continuity, redundancy, and productivity. These factors do not always translate directly into numbers. Costa Rica offers significant advantages in this regard, making it a reassuring destination for investment. In today’s environment, multinationals must exercise great caution when selecting operational locations, as these decisions often span two decades or more and cannot be reversed overnight. Stability is therefore paramount, and Costa Rica has consistently delivered on this front.
Another key differentiator is the country’s level of education. While the Dominican Republic has made impressive strides in advancing education, its focus remains on lower value-added processes. For example, one of our tenants shared that they were developing a facility in the Dominican Republic. When I suggested expanding their operations in Costa Rica instead, they explained that bringing the Dominican Republic’s processes to Costa Rica would be cost-prohibitive due to the high skill level of our workforce. Conversely, transferring Costa Rican processes to the Dominican Republic would result in higher rejection rates because the necessary skills are not as readily available. This experience underscored that, even within the same company, different processes are best suited to different countries, a strategic advantage for Costa Rica.
Costa Rica’s stability, combined with the Free Trade Zone regime, remains a major asset. There are critics who question why the entire country is not designated as a free trade zone or who suggest taxing companies within the regime, assuming they would not relocate. However, this perspective overlooks the fundamentals of how the regime operates. No country builds its economy solely around a free trade zone; it is an option that enables companies to compete on equal footing internationally. Costa Rica continues to stand out as one of the best places for investment, offering both security and peace of mind.
EF: What final message would you like to share?
FC: I encourage everyone to visit Costa Rica and experience firsthand the robust manufacturing ecosystem we have established. Here, it becomes clear why so many companies thrive. Before selecting an alternative location, I believe it is essential for organizations to witness the progress in Costa Rica, learn from our success stories, and gain insight into our future prospects. Our regulatory environment, skilled workforce, commitment to ongoing education, and continuous infrastructure enhancements all contribute to a dynamic and supportive business landscape.
