Mexico can capture US$50 billion from nearshoring

MEXICO - The National Council of the Maquiladora and Manufacturing Export Industry (Index) estimates that Mexico will receive investments of around US$50 billion from the relocation of companies from Asia and the United States, a phenomenon known as nearshoring.

"At least 60% of the investment projected for Mexico due to the relocation of companies will come through the manufacturing industry, estimated Luis Manuel Hernández, president of Index Nacional.

The maquiladora industry representative said that the export of manufacturing products is one of the engines of the national economy.

More than 62% of the country's trade is generated by manufacturing companies, generating one-fifth of Mexico's formal employment, he highlighted during the XLVIII National Convention of the Export Manufacturing Industry.

He added that 70% of these products are consumed by the United States.

Hernández described as unbeatable the opportunity that the country has in view of the relocation of companies, the rearrangement of supply chains and the trade relationship with the United States and Canada.

The energy sector in Mexico is a key industry for capitalizing on nearshoring, and companies have focused on reducing costs and distances between production centers and consumer markets, through collaboration mechanisms in the region in order to strengthen supply chains.