Nearshoring as a driver of industrial development in Mexico
Inmobiliare | November 15, 2023 |

In recent years, northern Mexico has stood out as an epicenter in the world of nearshoring, a phenomenon that is revolutionizing the industry globally.

This trend, which involves the relocation of manufacturing and service operations near the borders of the United States, has generated a fundamental change in the dynamics of the industry in the region, presenting challenges and opportunities at the national level.

The northern region of the country, with its proximity to the United States and its developed industrial infrastructure, has become a strategic location for companies around the world seeking to reduce costs and improve efficiency in their supply chains. This has driven significant growth in foreign direct investment and job creation in the region.

Of interest: Corredor Sur is consolidated as the epicenter of industrial growth in Ciudad Juárez

A key aspect of nearshoring is that the production of the companies that arrive in the country, for the most part, is destined for export to the United States, creating in Mexico an essential link in the value chain of American companies, or those whose destination final is said nation.

These companies provide components, semi-finished products or even final products that are then assembled or sold in the US market, benefiting both nations, creating jobs and strengthening their economies.

In this context, geographical proximity is a true competitive advantage in the context of globalization and the evolution of supply chains. Likewise, companies have chosen to move part of their production and operations to Mexico with the main objective of reducing costs and solving logistical problems that arise from long distances, facilitating inventory management and reducing transit times.

Estimates from the Inter-American Development Bank (IDB) suggest that nearshoring could significantly increase global exports from Latin America and the Caribbean, with an annual increase of around 78 billion dollars, of which 45% corresponds to Mexico .

Check here: CDMX maintains the pace of industrial investments, reporting 536 thousand m² under construction

Likewise, the Agreement between Mexico, the United States and Canada (USMCA) has been a crucial factor in attracting industrial investments to Mexico, establishing clear rules and benefits for companies operating in the region. It facilitates cross-border trade, reduces trade barriers and creates a more predictable trading environment.

Likewise, the country has earned a solid reputation for its ability to produce high-quality goods, especially in the manufacturing sector.

The Mexican workforce is highly qualified and trained, allowing companies to produce products with quality standards that meet global expectations. This has led to an increase in the production of high-value manufacturing in Mexico, including automobiles, electronic devices, pharmaceuticals and more.

In Solili you can consult industrial warehouses available in Monterrey, Saltillo and Ciudad Juárez

Original note

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