Broadly speaking, nearshoring is the business strategy that allows companies to bring production centers closer to their consumer markets, intending to generate benefits in logistics, transport, and managerial support.
The nearshoring move to Mexico comes as more and more U.S. companies decide doing business in China is simply no longer worth the cost. Nearshoring to Mexico could be a lifetime opportunity for those interested in investing in the country and in the companies doing business there.
Pepe Kamel, international entrepreneur and co-founder of in2mex, believes the road will be bumpy but the conditions are set and the incentives are in place for hundreds of companies to continue nearhsoring to Mexico.
Kamel writes in a recent article from his exclusive website: “the workforce skill mix of Mexico complements well with its northern counterparts. In fact, workforces in Canada and the USA compete with each other in high skilled labor and need low and mid skilled workforces to produce price competitive manufactured goods and services.”
Further research from Kamel’s article takes a magnifying glass on North America’s economic statistics making a case for the “geopolitical existential” importance of increasing efforts for economic self-sufficiency in the North American economic block.
Banks are already jumping on the region’s promise as a new manufacturing hub to replace China. In July of this year, the Inter-American Development Bank, the largest developmental finance institution servicing Latin America and the Caribbean, announced it would inject between $1.75 and $2.25 billion to support nearshoring and relocation projects in Mexico over the next three years.
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