Mexico's competitive cost advantage over China may change the import trends of US and European companies, according to a Bain & Company report, "Nearshoring opportunities for Mexican companies."

The investigation of the American consultancy considers that Mexico can be a destination for the transfer of productive chains of international companies, consolidating itself as a leading market in nearshoring in North America.

The study projects that growth could be accelerated by at least two percentage points in exports from the manufacturing sector in the coming years, going from 4-5% to 6-7%, which is equivalent to an additional 8 billion dollars per year to the amount that the industry usually produces.

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Mexico has a strong manufacturing industry, with a stable growth of exports between 4% and 5% per year, predominating in the transportation, mechanical-electrical devices and machinery industries.

In the last six years, Mexico has acquired a competitive cost advantage over China, the world's largest nearshoring market, which could generate a significant change in the import trends of US and European companies in the automotive sector, from appliances, machinery, furniture, plastics, among others.

Some of the industries with the greatest nearshoring potential in Mexico are: electrical-mechanical devices (medical equipment and photographic items) and industrial machinery (transformers, industrial pumps), which in each category will represent around 17% of US imports in 2020 .

“Monterrey, Tijuana and Querétaro are some of the cities that, due to their already consolidated industrial environment, are attractive places for international companies that could relocate some of their production processes in Mexico. 

In addition to the United States and China, companies from Germany, Canada, Denmark, and France have also begun to relocate operations to Mexico,” the investigation indicates.

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The consultant considers that there are four factors that favor Mexico so that more international companies relocate their production centers in the country, the first is the time zones aligned with the United States, which facilitates communication between production centers compared to the change schedule with China and Europe.

The second factor is associated with transportation costs, as well as more affordable and faster delivery times due to proximity and low complexity.

Third, the MEC trade agreement eliminated tariffs on Mexican exports to the United States, which favors Mexican production in various industries, especially in the manufacture of automobiles and automotive components.

Finally, we have the existence of an experienced manufacturing industry that has high quality standards and a highly trained workforce. The gross added value of the manufacturing industry in Mexico is around 221 billion dollars and contributes 18% to the national GDP.

In Solili you can consult industrial warehouses available in Mexico City, Tijuana, Ciudad Juárez and Saltillo

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