Nearshoring 'a winner' for Mexico

In its 'Q2 Market Update & Outlook Report', it discusses the biggest economic trends impacting supply chains and says there is continued resilience in cross-border trade between the US and Mexico, boosted by nearshoring, with US companies settling in and building factories and warehouses.

According to Mexico’s secretary of the economy (SE), there were 378 foreign direct investment (FDI) announcements in 2023 worth more than US$6.4 billion.

After the US, private sector investors in Mexico are China, Denmark, Australia and South Korea.

Mexico's FDI in Q1 2024 increased nine per cent year over year to US$20.3 billion, according to SE.

“We have not yet seen the full effect of nearshoring, because there are many companies that are in the process of expanding or in the process of opening new facilities,” Ben Enriquez, Uber Freight’s head of Mexico logistics and Customs said. 

"It’s a two-to-three-year process." 

Trade between the US and Mexico totalled US$798 billion last year.