Mexican factories along the U.S. border are exhibiting prominent changes in manufacturing and sourcing. In Tijuana, an exporting hub, plants and industrial parks are operating at almost maximum capacity, while in Ciudad Juárez, recruiters are urgently hiring workers for expanding or newly established companies. This bustling activity reflects an escalating trend of companies relocating their production and equipment to Mexico to establish a manufacturing hub nearer to the U.S., as part of a more extensive shift in global trade. Some businesses are moving from Asia, while others are investing to boost their output of goods that can be exported to the U.S. without tariffs. As the growth rate intensifies, logistics capabilities such as distribution centers are becoming crucial to promptly and efficiently reach U.S. customers.
The manufacturing industry in Mexico has gained worldwide recognition for its competitiveness, attributed to its utilization of cutting-edge technology and adherence to high-quality standards, in addition to offering low labor and operating costs.
Over the past few decades, original equipment manufacturers (OEM) and their suppliers have established plants in Mexico to leverage strategic advantages such as location, robust logistics infrastructure, and well-established supply and export chains.
Consequently, the most prominent manufacturing clusters that benefit from nearshoring opportunities in Mexico include:
Automotive and auto parts.
Electronics and household appliances.
Information and communication technologies (ICT).
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