Nearshoring to Mexico has geographical and demographical benefits, besides the costs savings and investment promotion policies.
Low labor costs
In comparison to the U.S. the cost of labor in Mexico is substantially lower. Manufacturing hourly salaries costs in Mexico are cheaper than those in China when comparing production between the two countries. Additionally, Mexico has far more consistent wages, which helps businesses plan their production expenses.
Cheaper logistic operations
Mexico has 117 seaports, 64 international airports, 27,000 km of railways and 172,000 km of highways for transportation and logistics. In March 2022, it cost more than $16,000 to ship a container from China to the United States, while from Mexico to the United States it was only $800.
Fast and safe supply chains
The land transportation from Mexico to the US takes about 3 or 4 days
and reduces the risk in the supply chains.
The country has more than 110,000 new engineers each year, a fact that guarantees the flow of specialized human talent.
Mexico is a global leader in manufacturing industries, such as automotive industry (4th global exporter globally), aerospace (6th largest supplier in aeronautical components
for the US) and medical devices (8th largest exporter globally).
•Intellectual property protection policies
•Mexico has equivalent intellectual property laws as of the US.
•Lower taxes and production incentives