Nearshoring

The emergence of covid and the invasion of Ukraine have represented global changes that have had an impact on production chains. The relocation of companies, or nearshoring, leads us to speak of a new development model, which consists of companies establishing their operations in other countries to take advantage of geographical proximity, cost reduction and labour quality.

The Organisation for Economic Co-operation and Development (OECD) reports that some investment components such as machinery and equipment are picking up, which means that nearshoring is already a reality. Companies from the United States and Canada are implementing this new model in Mexico on the basis of the T-MEC and taking advantage of trade agreements, and the results are clear.

The arrival of companies in Mexico through “nearshoring” has triggered investments in the country in excess of 13 billion dollars so far this year, revealed the Secretary of Finance and Public Credit, Rogelio Ramírez de la O, a few weeks ago.

“The Mexican economy has benefited from the announcement of investments by 20 companies. The 54% corresponded to the automotive and auto parts sector, due to the installation of a Tesla mega factory and the expansion of the German firm BMW, both projects in the north of the country,” he said.
Mexico is seen as a suitable environment for investment, with infrastructure for product distribution that favours trade between countries. The nearshor