Mexico faces unique challenges and opportunities in the context of Nearshoring, a trend that seeks to bring production closer to consumption centers.

This strategy does not simply involve moving factories from Asia to Mexico, but expanding capabilities in countries with existing infrastructure and geographic advantages. The public perception is that Mexico has not taken full advantage of Nearshoring, in part due to a lack of adequate infrastructure. However, this need for infrastructure can be seen as an opportunity for government action and investment.

According to the Nearshoring Observatory, Mexico has effectively taken advantage of relocation in supply chains where it has competitive advantages, such as the automotive industry and machinery production. 

In addition, new industrial segments are being developed, especially in the production of electric vehicles. The main investment flows into Mexico have come from U.S., European and non-Chinese Asian companies, mainly.Mexico must create a robust industrial ecosystem that not only attracts new companies, but also strengthens local supply. Cooperation between global suppliers, domestic investors and SMEs (small and medium-sized enterprises) is vital to foster innovation and integration in the value chain. Close collaboration between the government and the private sector, with joint work and innovation programs, will strengthen the quality and availability of local suppliers.

A relevant point to maximize the benefits of Nearshoring is that large Mexican business groups such as Carso, Grupo Mexico, FEMSA, Alfa, Bimbo, Cemex or Grupo Bal, join these supply chains and encourage the integration of SMEs as their local suppliers. This will promote quality jobs, increase wages and improve education and continuous training.