Due to its geographical location and business culture, Mexico presents several competitive advantages of manufacturing for international companies, in particular, for the North American region and one of the largest consumer markets in the world: the United States. Free trade in the North American region, a network of free trade agreements with 48 countries, competitive labor costs, skilled workers, similar time zones, efficient logistics, and a diversified industrial sector, and IP protection are some of the benefits of nearshoring in Mexico. However, several challenges are still present such as lack of infrastructure, excess bureaucracy, and weak rule of law.
This report provides an overview on the definition of nearshoring, explains the opportunities Mexico offers for nearshoring, and analyses some key sector and industries. It then focuses on two industrial hubs in Mexico: the Bajío and the Northern region. Finally, it addresses the challenges Mexico faces and provides several examples of Swiss companies with nearshoring strategies and activities in Mexico.
