Investment Alert: Nearshoring Flow Predictions in Mexico

The COVID-19 pandemic highlighted the urgency for many companies to reduce their dependence on the Asian supply chain. As a result, nearshoring, or the relocation of businesses, became a priority, and Mexico was one of the countries with the most potential to capitalize on this trend.
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The trade war between the U.S. and China, which began during the Trump administration, accelerated this shift. This led to an increase in company commitments to expand their production capacity in Mexico or move entire plants there.

Mexico is now the U.S.'s top trading partner, a position that is expected to remain regardless of who wins the next presidential election.

According to analysts, Mexico still has work to do to fully take advantage of nearshoring. This includes investing in expanding the energy grid in the north of the country, improving security, and preventing a deterioration in the investment climate due to certain government policies.