Thanks to the geographical proximity and the various trade agreements that have been in place between Mexico and the United States for many years, the nearshoring strategies of foreign companies to the Aztec country have favored the national economy. In turn, the potential for mass production at lower costs (compared to other regions) has made several Asian and European companies want to expand their industrial capacity and supply chains in this Latin American country.<\/p>\n
However, in order to supply and meet the expectations of foreign investment, Mexico needs to expand its industrial park infrastructure, which is closely related to the capacity to generate and distribute the amount of electrical energy needed in each manufacturing process. According to projections by AMPIP and BBVA Research, it is expected that between 2023 and 2025, around 453 new companies will be set up (of which 20% are of Asian origin), which will further intensify the energy infrastructure. Below, we will address several aspects of the impact of nearshoring, its advantages, disadvantages, benefits and impact in Mexico.<\/p>\n
Nearshoring or relocation is a commercial strategy used by companies to move part of their production from their country of origin to other neighboring territories where they can optimize times and reduce costs, thus bringing the supply chain closer to the final consumer.<\/p>\n
It should be borne in mind that nearshoring and offshoring are strategies with a common objective, but the difference between them is that the former involves relocating manufacturing processes to closer geographical areas, while the latter can involve moving to more distant countries.<\/p>\n
In Latin America, Mexico is the country that benefits most from nearshoring, due to its geographical proximity to the United States and the extensive trade relationship with Canada through the USMCA. Factors such as the abundance of natural resources, renewable energy, economic stability and a skilled workforce make the country a continuous focus of foreign investment. This has a positive impact, generating more employment and promoting the transfer of modern technologies from abroad.<\/p>\n
According to the Inter-American Development Bank (IDB), Mexico could attract around USD 35 billion in investment through nearshoring. Furthermore, in the last five years, the sectors that have benefited most from this commercial dynamic have been: automotive, manufacturing and electrical appliances, thus diversifying the country’s economy and reducing its dependence on a single sector.<\/p>\n
Another benefit for the country is the development of infrastructure and transportation routes. An example of this is the demand for industrial space which, in places like Monterrey, grew by 10%, with a request for 12,499,000 m2<\/sup>, and in Ciudad Ju\u00e1rez it increased by 11%, with an area of 4,329,000 m2<\/sup> during 2023.<\/p>\n Although Mexico has invested more than 32 million pesos in the last year in road infrastructure, improving its ports, highways and railways, significant investment is still needed in industrial parks in terms of energy and connectivity for the country to develop as a profitable investment destination for nearshoring.<\/i><\/p>\n Other disadvantages of nearshoring in this country are associated with:<\/p>\nWhat are the advantages of nearshoring?<\/b><\/span><\/h2>\n
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What are the disadvantages of nearshoring?<\/b><\/span><\/h2>\n