We share with you an article of the prestigious Mexican magazine The economist regarding Nearshoring opportunities:
The trade conflict between the United States and China has led to a surge in nearshoring, where companies seek to move their production centers closer to final consumption points, such as North America. Mexico has emerged as a key player in this trend, particularly the real estate markets in the northern regions, which have experienced significant demand and filled industrial parks.
However, experts believe that the benefits of nearshoring can extend beyond the U.S. border and potentially reach the more underdeveloped south-southeast region of Mexico. While this presents a tremendous opportunity, it may take years to fully materialize.
Gonzalo Robina, Deputy General Director of Fibra Uno (FUNO), emphasizes that nearshoring is not limited to the first 200 kilometers near the border; it encompasses much more. He highlights the logistical advantage for companies exporting to the United States to have production centers anywhere in Mexico rather than in distant China. The significantly shorter transportation distance from Mexico to the U.S., compared to China, offers faster and more efficient access to the North American market.
For instance, the distance between Shanghai and Laredo (Texas) is approximately 12,164 kilometers, while the distance from Mérida, Yucatán, to Laredo is only 2,100 kilometers. This proximity results in a considerable advantage when transporting merchandise, as shipping from Mexico to the U.S. takes only 24 hours by land, compared to up to three weeks from China by boat.
While nearshoring presents a great opportunity for the south-southeast region, Liliana Hernández, General Director of American Industries company, points out that its development will require a decade of efforts by public and private initiatives. Infrastructure plays a critical role in triggering industrial development in this region, and the current administration’s focus on infrastructure projects such as the Dos Bocas refinery and the Mayan Train is a step towards boosting the industrial sector.
Yucatán is one of the southern states making progress in the industrial landscape, with Mérida closing 2022 with an inventory of over 939,000 square meters, a 5% increase from 2021. The growth of the south-southeast region is a long-term endeavor that requires careful planning and investment.
As part of this development, the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) is a promising project. It involves modernizing ports, constructing railways and highways, and developing ten industrial parks along the route. The government has promised tax incentives for companies interested in participating.
Robina, as a member of the Council of the Mexican Association of Private Industrial Parks (AMPIP), shares that developers will collaborate with authorities to support the construction of industrial spaces within the CIIT. To generate efficient supply chains, an in-depth analysis of the type of industries to be installed in the parks is crucial. Focusing on industries like wind energy can pave the way for the creation of complementary businesses in the region.
In conclusion, nearshoring to Mexico is transforming the industrial landscape, but the south-southeast region’s full potential may take a decade to realize. Infrastructure development and strategic planning will be pivotal in unleashing the industrial real estate market in this region and further boosting the Mexican economy.
You can find the original article here ( in spanish ).