Mexico is a leading country for Nearshoring

MEXICO - In the current economic context, nearshoring has become a growing trend in the business industry. It consists of the practice of moving production and other business processes to nearby countries instead of distant ones.

In the case of Mexico, nearshoring has become an attractive option for U.S. and Canadian companies due to its geographic proximity and competitive costs. Some of the advantages of nearshoring in Mexico include time and effort savings in outsourced operations, reduced project risk, increased performance and competitiveness, and access to a large skilled workforce.

However, there are also disadvantages such as initial investment and language barriers. Despite this, Mexico has taken advantage of these advantages and has become an attractive destination for nearshoring, especially in strategic sectors such as the automotive industry.

The country has a solid infrastructure, low logistics costs, a skilled workforce and intellectual property protection. In addition, Mexico offers promotion programs, lower tariffs and a network of free trade agreements that facilitate trade with other countries.

Source: BBVA