The nearshoring phenomenon
What is nearshoring, and how exactly is it impacting Mexico?
Change began a little over 25 years ago. When Mexico became an attractive country for factory installation due to the creation of NAFTA.
Foreign direct investment (FDI) in Mexico
FDI in Mexico increased from less than $14 billion in 1999 to over $30 billion in 2001.
In the early years, over 70% of FDI consisted of new investments, but now more than half represents reinvested profits by foreign companies.
China is one of the countries shifting the manufacturing of its products to Mexico, with a significant increase in FDI from Chinese companies.
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Nearshoring in Mexico
Nearshoring involves relocating or creating new factories near the customers.
The phenomenon began to be noticed around 2012-2013 when companies sought to be closer to their customers.
The Mexican market could grow between 8% and 12% annually over the next five years due to nearshoring.
Nuevo León is one of the states receiving most nearshoring investments, with projects from companies in the USA, China, Korea, Germany, and the United Kingdom.
Hofusan Industrial Park is a focal point for Chinese companies choosing to settle in Mexico.
This phenomenon has an impact on various sectors such as construction, transportation, legal services, and education, among others.
Significant growth is expected in municipalities like Pesquería and Salinas Victoria due to the arrival of large companies.
It is evident that nearshoring is a reality in Mexico, and it represents many opportunities for companies in the country.
