Nearshoring the driver that is giving the impulse to the industrial markets in Mexico
Solili | November 23, 2021 |

The increasingly globalized world led companies to innovate with respect to outsourcing processes, for this reason companies saw advantages of relocating or transferring part of their commercial operation to a country closer to the demand, especially compared to other more distant countries.

These new countries often border, as is the case of Mexico and the United States, contemplate the advantage of reducing travel times and having labor realities that can be interpreted more easily, which makes it possible to solve any difficulty when making the products to the final consumer.

The proximity of our country to the United States and Canada, and the advancement of the Free Trade Agreement signed in July 2020, together with the development of a qualified workforce make Mexico the ideal place to establish bases for Asian or European companies.

Similarly, large US importers considered that relocating part of their processes in Mexico could generate advantages based on more competitive production costs, while diversifying supply risks from Asian countries that previously supplied them.

During the period from January to September 2021, Mexico remained the first partner of the United States in the trade of products, as recently reported by the United States Census Bureau, where it accounted for a share of 14.6% in the total trade flows of The United States, surpassing Canada and China, which registered 14.5% and 13.9%, respectively.

Check here: Electronic commerce was 20 years ahead in Mexico

Since the appearance of Covid, the relocation of production processes has accelerated as a result of the pressure exerted on the supply chain, which led multiple headquarters to evaluate Mexico as the ideal partner to establish nearshoring of their products and services.

This situation has resulted in a strong boost in industrial demand in the main Mexican markets.

According to figures monitored by Solili, from January to October 2021 Monterrey and Mexico City concentrated 36% of the gross national demand for industrial buildings, with 981 thousand and 966 thousand square meters, respectively.

In those eight months, Tijuana, Ciudad Juárez and Saltillo reached gross demands of 637, 524 and 405 thousand square meters, respectively, and part of this demand corresponds to both manufacturing and logistics locations that were previously carried out in other countries.

The sophisticated level of exports in Mexico, mainly in the border cities and the Bajío, has been supported by products of high complexity and great added value in industries such as automotive and aeronautics, to name a few.

Of interest: The year 2021 is shaping up to be located with industrial demand levels higher than the pre-pandemic

The benefits of nearshoring in Mexico are diverse, the most prominent being the competitiveness of labor costs, tariff benefits, the reduction of logistics costs, the guarantee of fast and secure supply chains with direct communication to the United States, and the continuous development of skilled labor.

Monterrey, Querétaro and Guanajuato are some examples of markets that have promoted, with the help of specialized clusters and the support of their local governments, initiatives that mobilize the education sector and the employer in the same way created to increase direct foreign investment to their markets. .

Recently, the largest shipping company in the world, Maersk declared that nearshoring will continue to intensify in Mexico due to its logistical and legislative advantages when compared to other countries in Latin America.

It is expected that the remainder of the year and the coming 2022 will continue the dynamism and drive in the consolidation of some emerging markets, where nearshoring will continue to be the driver that will maintain this growth.

Stay up to date with the most important news to the real estate

Subscribe Solili Newsletter

  
Advertisinginfo