The Nearshoring Impact on Mexico’s Manufacturing Hub: Insights from FABTECH MÉXICO

In the inaugural day of FABTECH MÉXICO, during the conference ‘From – Made in Nuevo León -, to – Innovated in Nuevo León’, Emmanuel Loo, the Deputy Secretary of Investment of the state of Nuevo León, highlighted the region’s status as the manufacturing nucleus of the country. He revealed that 76% of Nearshoring in Mexico flows into Nuevo León, with 2 to 3 foreign companies inaugurating operations weekly, including major players like Tesla, Lego, Mattel, and Polaris.

Loo emphasized Nuevo León’s significance as an educational hub, boasting the nation’s best talent pool with a surplus of engineers and technicians. Notably, it is the sole state housing a research and technological innovation park.

Jerónimo García De Brahi, CEO of Grupo FOREM, elucidated on the current catalysts driving the metal-mechanical industry in his talk ‘Evolution: Current Catalysts of the Metal-Mechanical Industry’. He underscored factors such as the US-China trade war, the Russia-Ukraine conflict, and the COVID-19 pandemic, which propelled the Nearshoring trend in Mexico, resulting in over $36 billion in foreign investment in 2023.

García De Brahi stressed that Nearshoring is poised to impact the country’s GDP by 4%, advocating for talent development, investment in Industry 4.0 technologies, and long-term sustainability as critical action priorities.

Furthermore, Jesus Francisco López, Director of Institutional Relations at CAINTRA Nuevo León, addressed the challenges and opportunities of Nearshoring, noting Mexico’s increasing importance as a US import partner. He highlighted benefits such as technology exchange and knowledge transfer, particularly beneficial for the state’s 14,000 industrial SMEs.

Concluding the day’s proceedings, Ricardo Franco Romo, Global Director of Business Development at Grupo PRODENSA, shared statistics on manufacturing employment in Nuevo León and emphasized the importance of talent retention in the evolving workforce landscape.

Resumen en Español:

Durante el primer día de FABTECH MÉXICO, líderes industriales destacaron el papel de Nuevo León como centro manufacturero y educativo, así como los catalizadores que impulsan el Nearshoring en México. Se resaltó la importancia de invertir en talento, tecnología y sostenibilidad para aprovechar al máximo este fenómeno. Aunque se identificaron desafíos como la necesidad de mayor inversión en innovación y la retención de talento, se vislumbran oportunidades significativas para el crecimiento de la industria manufacturera mexicana.