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Get exclusive intel on trilateral cooperation within the USMCA. See how the US, Canada, and Mexico are working together to dominate the manufacturing landscape.
We deliver informative insights and research on how the three North American economies are collaborating to create the world's most cutting-edge products.
Made in North America.
ABOUT
THE NEARSHORING EXPERT
Emilio Cadena-RUBIO
CEO of Grupo Prodensa
- Current Chairman of the Board of Directors at the U.S.-Mexico Foundation
- Former President of INDEX, the National Council for Manufacturers for Export
- Co-Chair of the Trade Facilitation Working Group of the U.S.-Mexico CEO Dialogue
- Current Member of Mexico's Business Council Steering Committee for USMCA Negotiation
Ready to Take
the Mexico Journey?
WHAT IS NEARSHORING?
What is nearshoring?
What are the nearshoring trends?
The primary trend in nearshoring is a growing preference for companies to move manufacturing and business operations closer to their home markets, particularly to neighboring countries, driven by factors like supply chain resilience, cost-effectiveness, faster delivery times, and reduced geopolitical risks, with regions like North America seeing significant activity in nearshoring practices.
What is the difference between nearshoring and offshoring?
Is nearshoring the same as reshoring?
While both nearshoring and reshoring involve a shift in business operations, they differ in their geographic scope. Reshoring entails returning operations to the company’s home country, while nearshoring involves relocating them to a nearby one.
Nearshoring: A guide to benefits & strategies
A BOOMING MARKET
Drivers to Nearshoring in Mexico
North American manufacturers are facing a unique confluence of trends that is creating historic opportunities for the region.
The three phenomena:
- Production lines are shifting from Asia to be closer to North American markets
- The transition from gasoline-powered vehicles to electric vehicles is requiring a significant transformation of manufacturing capabilities
- Manufacturers in the U.S. are seeing a great challenge in staffing their operations in the era of flex time, flex space, gaming, and influencing
NEARSHORING
The impact of geographical diversification
Geographical diversification is becoming a key strategy for companies seeking to optimize their operations and enhance their competitiveness globally. Western companies, in an effort to get closer to their markets and reduce costs, are relocating part of their operations to Mexican territory.
This movement is driven by:
- Pursuit of operational efficiencies and lower operating costs
- Desire to mitigate risks associated with dependence on distant markets, especially in the context of political and trade tensions
- Long-term strategic considerations on how to position oneself favorably in an uncertain and competitive global market
Strategic Location
Logistics and the strategic location of inventories
Companies that achieve synergy between the location of their inventories and the preferences of their customers, leveraging market trends and adapting to new realities, will not only survive but thrive.
The key lies in three important factors:
- The ability to anticipate changes
- Knowing how to adapt quickly to adopt a strategic approach to inventory management
- Making the right logistics decisions, which will be crucial for long-term success
NEARSHORING STATISTICS
of Merchandise Crosses USMCA Borders every Minute
of the Content in Mexican Exports to U.S. is Made in the USA
the year Mexico became the Top Trading Partner to the U.S.
Growth of Mexico's Industrial Sector more than Double 10-Year Average
Expected Growth of Sectors Benefiting from USMCA in Next 5 Years
YOY Growth of "Nearshoring" in Earnings Calls Since 2022
Percent of Trade between USMCA Countries is Intermediate Goods
Additional Jobs that Could be Created by Nearshoring in Mexico
THRIVE IN A BOOMING MARKET
Implementing a nearshoring strategy
Are you considering nearshoring?
Through daily conversations about nearshoring, I've gained a deep understanding of the strategic planning and implementation required for a smooth transition.
Together with my team of industrial experts, project managers, and company leaders, The Mexico Journey offers a comprehensive approach to navigating your nearshoring journey to Mexico.
Understand the Environment
Understanding the business climate and the public and private institutions in Mexico
Design the Business Case
There are a number of ways to manufacture or do business in Mexico; the right one depends on your goals
Select the Location
Arguably the most critical decision in your journey, its best to utilize data to make it confidently
Setting up the Operation
Execution of the strategy and launch of manufacturing operations
Operational Excellency
Flexible and scalable support so you can thrive in a booming market
The future of Nearshoring
What is the "tech-shoring"?
Mexico stands out for its rich human capital and growing specialization in technological sectors, attracting investments in innovative areas such as e-commerce. This trend is called "tech-shorings", similar to nearshoring, but emphasizing Mexico's evolution toward a more diversified economy with greater capacity to attract foreign investments in high-value-added sectors.
Technology clusters in mexico
Slide Through the Clusters
Made in North America