He nearshoring It is a strategy that consists of outsourcing activities or business processes to geographically nearby countries. Unlike offshoring, which involves outsourcing to distant countries, nearshoring takes advantage of geographic proximity and cultural for additional benefits.
By its location, Mexico has turned out to be an attractive country for countless international companies. However, our nation still faces major challenges in attracting and retaining more investments.
In accordance with Hajer Najjargeneral director of the Franco-Mexican Chamber of Commerce and Industry, The search and retention of talent is one of the complications that nearshoring has in Mexico.
For example, while in the United States they offer up to $50 per hour worked, in Mexico they barely reach four or five dollars, according to the executive. In this sense, rotation among workers is also constant, since they choose to constantly change jobs.
The lack of industrial spaces and infrastructure is also a factor that influences attracting international companies to the country. For example, recently there was talk of the cancellation of the construction of the tesla in Nuevo León, due to the conditions of the entity (a rumor that has already been denied, but which serves as an example to visualize the scenario).
You might be interested: Did Tesla back down with a plant in Nuevo León? The company and the government respond to this
Finally, during the Business Forum ‘Overcoming the challenges of Nearshoring’, various specialists added customs, production and logistics costs as some of the criteria for which there was a ‘no’ for Mexico from foreign companies.
The administrative procedures, permits and waiting time to locate a company in Mexico, they commented, are often long and cumbersome.
Nearshoring, ahead of the 2024 elections
Curiously, the executives did not mention the unsafety among the brakes that address nearshoring. In fact, when asked about the outlook for 2024, an election year, Karen LelloucheBoston Consulting Group Managing Director and Senior Partner, said that companies are prepared for the electoral period.
“Companies are not afraid of the 2024 federal elections, but they are beginning to analyze possible scenarios.”
For his part, Hajer Najjar assured that the companies, at least the French ones, are not going to leave since they predict a minimal negative political impact, so they will continue investing in Mexico in the coming years.
Currently, the CCI France Mexico It represents around 550 French companies in the country, which generate around 200 thousand jobs.
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