In recent years, the construction sector in Mexico has undergone a sea change thanks to the phenomenon of nearshoring. This business model has revolutionized the way companies in the sector operate and has become an increasingly popular trend.
The growing demand for warehouses, distribution centers, and offices has led to a sharp increase in the construction of new properties and the development of industrial parks and business centers throughout Mexico. This trend has created an unprecedented landscape of opportunities for the real estate and construction sector, which will continue to grow in the coming years and will certainly continue to drive the country's economic development.
The Mexican Association of Industrial Parks (AMPIP) has announced that more than $3 billion has been earmarked for the construction of 50 private industrial parks; these areas are focused on the installation of factories, distribution and storage centers and are part of the investments that companies are making to take advantage of the opportunities offered by nearshoring.
Data reveal strong construction growth, 2023, with an expansion of 5 million square meters in the first three quarters, resulting in increased inventory and continued market expansion. This year alone, more than 350 industrial projects have been started in different markets in Mexico.
The cities with the most activity in this field were:
-Monterrey, in Nuevo Leon, with 1.7 million square meters;
-Mexico City, with 767,000 square meters;
-Saltillo, in Coahuila, with 583,000 square meters.
In total, 5.6 million square meters of industrial buildings were built nationwide in 2023.
Over the next few years, 50 new industrial parks are expected to be built, totaling more than 8 million additional square meters.
This development represents a breakthrough in terms of the country's industrial infrastructure; although some of these parks are still under construction, most of them are expected to come into operation between 2024 and 2025.
By 2027, a huge demand for land is expected, which could exceed 6 million square meters. This is a historic figure.
One of the main reasons the construction industry is focusing on nearshoring-related development in Mexico is the country's proximity to the United States; this allows for easy communication and collaboration among teams, thus reducing the time and costs associated with international travel. In addition, proximity also facilitates monitoring and control of project progress.
Another important advantage is the availability of a highly skilled workforce. The country has internationally recognized universities that offer graduate programs in civil engineering, architecture, and other construction-related areas; this ensures that companies obtain qualified personnel to carry out complex and challenging projects.
In addition, the cost of labor in Mexico is significantly lower than in countries such as the United States or Canada, which translates into savings for contractors without sacrificing quality of work. Mexican professionals are highly skilled and use advanced technologies to ensure exceptional results.
The trend of manufacturing and logistics relocation (nearshoring) in Mexico is also driven by political and economic factors. The country's political stability, combined with a favorable business environment, has made Mexico an attractive destination for foreign investment.
In addition, the Mexican government has implemented policies that promote collaboration between Mexican and foreign companies on construction projects, which has led to increased demand for services related to nearshoring.
In addition to the direct positive impact on local contractors, nearshoring also has an indirect positive effect on other Mexican economic sectors. As foreign firms have increased demand for new construction, the Mexican building materials and equipment industry has also benefited. This has produced employment and economic growth.
The future of nearshoring in Mexico is very promising and is transforming the country's construction industry; due to its strategic location in relation to the U.S. and Canada, skilled labor and competitive costs, Mexico has become an ideal destination for companies looking to outsource their construction services.
Source: EXPOCIHAC, “Rumbo a la Construcción 2030”, Primer Reporte de la Industria 2024 . Accessed September 18, 2024
