Why Mexico offers the best conditions for nearshoring
Mexico has become an attractive country for nearshoring due to its proximity to the United States, the Free Trade Agreement between the United States and Canada USMCA, low labor costs, safe and efficient supply chains, and strong performance in the national industry, particularly the automotive sector. Mexico also has favorable characteristics such as its strategic geographical position, natural resources, young and numerous labor force, and integration into the world economic order.
Various industries have presented the greatest qualities thanks to nearshoring, including the automotive industry, metalworking, electronic commerce, construction, and textile industry. The United States, Canada, Spain, China, and Germany are the main countries that do nearshoring in Mexico in areas such as manufacturing, financial and insurance services, retail and wholesale trade, and communication.
Geographic proximity: Mexico is located south of the United States and shares a border with it, making it an ideal location for companies looking to outsource work without having to deal with the logistical challenges associated with working with far-flung countries. Proximity to Mexico means companies can still maintain direct control over outsourced work. Another benefit is shorter travel times and fewer communication barriers, as time zones also coincide.
Large and skilled workforce: the country has a population of over 128 million people, a large portion of whom work in the service sector. Mexico has many well-established universities, some of which are ranked among the top 200 universities in the world. This allows for a large number of qualified professionals to be produced in areas such as IT, engineering and finance. With such a large pool of talent, companies can find the right people with the right skills for a job at a lower cost than in their home country. In addition to this, the workforce usually has a very good level of English.
Business-friendly environment: the Mexican government has taken measures to encourage foreign investment and business growth, including tax incentives and simplified bureaucracy. In addition, Mexico has signed free trade agreements with more than 40 countries, making it an attractive location for companies looking to expand their global presence.
The benefits of nearshoring in Mexico are not limited to cost savings and proximity. It also gives companies access to a diverse and vibrant culture, which can be beneficial for building a strong business and developing innovative ideas. Mexico is known for its rich history, art and cuisine. The country is also home to a growing technology scene that attracts entrepreneurs and investors from around the world.