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Nearshoring could increase the region’s exports of goods and services by up to $78 billion.
The United States is one of the countries that takes the most advantages from this trend in many industries with LATAM cities.
Mexico continues to be a very attractive country for many companies and brands.
Mexico is one of the most attractive countries for brands, especially for factories and companies. Given this, new data has emerged on how nearshoring can mean endless advantages for the country.
Before starting to mention data, it is important to know the meaning of nearshoring, which is the transfer of manufacturing to a nearby country or the relocation of certain manufacturing processes to a more immediate location. Thus, the company benefits from different factors such as the hours, culture, experience, language, economy or politics of that location.
In this sense, specialists maintain that in the case of the United States, the clearest example of the application of this term is that the advantages of nearshoring with LATAM are due to the fact that they have time zones similar to those of Latin America.
Given this, a study carried out by IDC, the global market intelligence company in the field of technology, indicated that Latin America offers the North American market a unique combination of geographic proximity and partners with developed capabilities and sufficient maturity to provide quality to your customers.
Also, other data Biz Latinhighlights that the application in LATAM of nearshoring could increase exports of goods and services in the region up to 78 billion dollars, with the Central American and Caribbean economies being the most benefited, according to projections from the Inter-American Development Bank (IDB).
Mexico may benefit from nearshoring
Under all these data, in a recent investigation, Sergio Ríos, a former state official and expert in foreign trade, explained at ITESO the keys to take advantage of this “tsunami”, since the country meets the conditions to take advantage of this trend of companies that seek to relocate their operations and invest in countries close to their main headquarters.
Therefore, he explained that it is a great opportunity for the growth of the Mexican economy, at least during the next decade.
In that same order, and according to Ríos, Mexico has the optimal conditions to take advantage of this industrial relocation.
“We have greater commercial openness, a much more diversified economic structure and much more prepared people”, he stated.
Likewise, he listed the advantages of the country to benefit from nearshoring, where he began that the economic potential of Mexico is the main factor that companies consider to settle.
“The investor minimizes the political part, which possibly has a cost, but it is the economic part that he sees with great enthusiasm,” Ríos pointed out in what was shared in his research.
As also added future growth, which according to projections, Mexico will be the eighth largest economy in the world in 2050. Where, currently the country ranks 15th.
Another advantage is that the country has trade agreements with 51 countries, including the USMCA, or treaty with the United States and Canada.
“Global leadership in advanced manufacturing, where Mexico is the fourth world exporter of light vehicles, the main manufacturer of flat screens in the world and the sixth supplier of the United States aerospace industry”, he adds.
Another point is logistics and proximity to the United States, which allows Mexico to send manufacturing to that country in 24 hours.
Finally, he maintains that Mexico has industrial parks, registering more than 750 spaces of this type to house companies from different sectors.
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