If we want to analyze the reasons why Mexico is one of the most attractive countries for nearshoring, let’s start with the most obvious.
Its geographical location is strategic, since it is located next to one of the largest markets in the world, North America.
The trade war between China and the United States is also a factor that has put Mexico in a favorable position.
The trade agreements, on the one hand, the T-MEC that opens the doors to the United States and Canada markets, but also Mexico maintains a network of 12 Trade Agreements (TLCs) with 46 countries, 32 agreements for the Promotion and Reciprocal Protection of Investments (APPRIs) with 33 countries and 9 limited scope agreements.
Another factor to consider is the labor force, Mexico has enough qualified labor to meet the growing demand of the industry and at a cheaper cost than in the United States.
Finally, we can also consider that Mexico is far from major territorial conflagrations such as Russia/Ukraine or the turmoil in the Middle East and Asia, which offers greater peace of mind to the markets.
All these factors have led to the development of industrial parks, which are increasingly in demand by foreign companies, to the point where spaces are rented even when they are just under construction.
The Ministry of Economy reported that foreign investment grew by 12% in 2022 and that 48% of this growth were companies that did not have a presence in Mexico.
But not everything is “hunky-dory”, Mexico also has important challenges to overcome, perhaps the most important is developing infrastructure that guarantees that new companies will have enough energy, and mostly clean, for their operations.
The availability of water and security in some areas of the country are also issues that are on the table for discussion.
Another factor that has come to be dealt with, especially with the United States, is having a similar regulatory framework that does not favor only local companies, thus allowing free competition.
#Nearshoring is an especially important trend for #mexico but is a complex issue that requires the participation of various sectors and that requires the collaboration and availability of the labor force, but everything indicates that there is a very promising future for the country in the short and medium term.
At #BeSa ® we are ready to support you to take advantage of these opportunities through our international services. If you require more information, visit our website (www.besa.mx) and contact us.