According to the Confederation of Industrial Chambers (Concamin), Mexico is set to receive a significant boost in foreign direct investment with around 400 Asian companies planning to set up their businesses in the country. This trend of nearshoring, or relocating manufacturing, assembly or supply processes closer to the target market, has been driven by the ongoing trade dispute between the United States and China.
Benefits of Nearshoring in Mexico:
- Generates income resources that strengthen Mexico’s economy
- Ensures the availability of supplies during the manufacturing process
- Facilitates the transfer of finished products to the target market
- Reduces the risk of operational interruptions for transnational organizations
Mexico’s Advantages for Nearshoring:
- Its geographic location on the border with the world’s largest importer favors it
- The trade dispute between the US and China is an opportunity for Mexico to attract large investments
- Companies in the automotive and basic metals sectors have already started investing in Mexico due to nearshoring
“The future of the economy lies in relocation or nearshoring,” said José Antonio Abugaber Andonie, president of Concamin. He added that Mexico must take advantage of the international situation to attract global companies to relocate.
Abugaber Andonie emphasized that nearshoring is a scheme that seeks to attract private investment to benefit Mexican families, particularly those in the south and southeast regions. With the arrival of new plants and production lines, Mexico can boost its economic growth and provide employment opportunities to its citizens.
In conclusion, the trend of nearshoring is set to benefit Mexico’s economy by attracting foreign direct investment, generating income resources, and creating job opportunities for Mexican families. As a result, Mexico must be proactive in taking advantage of this opportunity and continue to promote its advantages for global companies.