Nearshoring, the Missed Opportunity

Nearshoring, a strategy where companies relocate operations close to their main market, has emerged as a significant opportunity for México due to its proximity to United States.

However, various analyses indicate that the country hasn't fully capitalized on this potential.

Nearshoring has transformed the way companies operate, bringing their productive activities closer to their main market. This trend has offered México a unique opportunity to attract foreign investments.

Missed Opportunity

According to a report from the Centro de Estudios Económicos del Sector Privado (CEESP), México has lost opportunities for economic growth by not adequately promoting nearshoring.

The lack of legal and public security has caused uncertainty among foreign companies, especially Asian ones, considering relocating their operations to the country.

Identified Obstacles

CEESP points out that, although nearshoring could contribute up to 3% to México's Gross Domestic Product (GDP), insecurity and poor infrastructure limit its development.

These conditions discourage foreign direct investment (FDI) and affect the country's competitiveness in the manufacturing sector.

Government Initiatives

In response, the government has launched the "Plan México," aimed at increasing national content in strategic sectors, generating well-paid jobs, and positioning the country as a center of innovation and advanced production.

The goal is to create 1.5 million additional jobs in specialized manufacturing by 2030.

Persistent Challenges

Despite these initiatives, significant challenges persist. Insecurity and the lack of adequate infrastructure continue to be barriers to attracting investments.

Experts warn that, without improvements in these areas, México could continue missing out on the competitive advantages that nearshoring offers.

Future Prospects

To reverse this trend, it is crucial for México to strengthen the rule of law, improve public security, and develop quality infrastructure.

Only then can it fully take advantage of the opportunities that nearshoring offers and establish itself as an attractive destination for foreign investment.

Opportunities for Mexican SMEs

A report from the Banco de México reveals that approximately 31% of Mexican companies have signed new contracts or increased their production due to nearshoring.

Additionally, it is anticipated that 22% of companies will gain greater benefits from this phenomenon during 2023, while 41% expect these to materialize between 2024 and 2026.

This context offers SMEs the possibility of accessing new markets and collaborating with international companies, strengthening their position in the global economy.

To ensure that nearshoring benefits México, it is essential for the government and companies to work together to improve security, strengthen the rule of law, and develop the appropriate infrastructure to attract the necessary investment.