Mexico and the advantage of the globalized world that favors nearshoring
Forbes | September 29, 2022 |

Amid the changes in the world after the pandemic, in recent months investors have set their sights on Mexico and plan to move to the national territory thanks to the nearshoring phenomenon, said Bain & Company's expert in macro trends, Karen Harris.

According to the specialist, in a more regionalized world, where raw materials and energy are more expensive, nearshoring is an opportunity for Mexico and could be a great victory.

"I think I've had more discussions with investors about moving to Mexico, about investing in Mexico, in the last six months than before that in my entire career," Harris said.

Of interest: Mexico City continues with industrial rents with increases of more than 10%

In this sense, Harris explained that the country has benefited from the trends and is becoming more integrated into the North American market; In addition, the shortage of labor in some countries or raw material is something that plays in its favor.

“The labor force is in decline, the baby boomers who were the savers, who contribute to the financial markets, are now retiring and if they don't use those savings, they don't generate more and it's creating a shortage of workers in many markets around the world” , he detailed.

Harris indicated that three great times of crisis are simultaneously "compressing" the world, the first is the chaos in the supply chain, similar to what happened in the 1940s; also the rise of the leveraged financial system, as in the 2000s.

And then there is the commodity shock, as it was in the 1970s; all of the above, coupled with the impact of the pandemic, cause the Great Transformation to accelerate and compress, he adds.

Check here: Leadership of the medical sector promoted the industry in Tijuana

In this sense, the specialist commented that central banks raise interest rates to stop an inflationary spiral, while short-term pressures are resolved, while demand remains solid enough to avoid a significant recession.

"Although it is unknown if it will be the end of a growth cycle, the concern about inflation will remain latent, as it will have a decisive impact on the way of doing business in Mexico and Latin America," he said.

Therefore, he assured, companies must focus on developing a new roadmap that allows them to adapt new strategies to their business models to adapt to new trends such as global flattening, financial assets, the use of labor and spatial concentration.

In Solili you can consult industrial warehouses available in Monterrey, Saltillo and Ciudad Juárez

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