Mexico reaches US$30 billion in the first half of the year thanks to nearshoring

AGUASCALIENTES - According to René Mendoza, national president of the Chain of Industry Suppliers in Mexico (CAPIM), Mexico has surpassed the expectations of the Inter-American Development Bank (IDB) in terms of nearshoring for 2023, since at the end of the first semester, almost US$30 billion had been registered.

During his visit to Aguascalientes, the president of CAPIM predicted that the projections estimated by the IDB of US$35 billion for the nearshoring phenomenon in Mexico will be exceeded without any problem.

He added that Mexico is in the eyes of large Asian corporations to relocate their factories, but also to expand their operations or increase the production of their plants already installed in the country, which has caused the localization of suppliers to grow by 213% in the first half of 2023.

"Locating suppliers in Mexico is a necessity and the automotive sector is the biggest beneficiary of the change in rules of origin that went into effect this year. Before, companies could import 40% of their inputs from countries other than Mexico, the United States and Canada. Today they are only allowed 25%; this 15% differential means the need to substitute imports from Asia and Europe for around US$35 billion, which if we compare it with the current production of auto parts is more than 30%," explained the president of CAPIM.

René Mendoza highlighted that Aguascalientes is standing out nationally in terms of boosting local companies and linking them with suppliers and the automotive supply chain, so that through events such as the 3rd North American B2B Meeting, business operations of more than US$4 billion can be generated.