Mexico has the historic opportunity to grow its economy and become a true industrial hub, as well as have real benefits derived from nearshoring, due to the fact that it has factors such as skilled workers and proximity to the United States, added to more conditions.

According to Héctor Tijerina, executive director of Invest Monterrey, investors have shown they have a comprehensive strategy, although they consider cost efficiency as well as the supply of goods. He added that, in the first quarter of 2023, 46 investments related to nearshoring have been announced, which translates into an investment of 13.43 billion dollars.

During the virtual table Nearshoring: the billionaire industrial boom that Mexico is experiencing as an alternative to "Made in China", Paulina González, Director of the Northwest region of American Industries Group, said that an investment in ports and customs is important to have an efficient distribution of supply chains.

Check here: Pre-leasing increases due to the shortage of industrial supply in Ciudad Juárez

An example of this is that the Port of Manzanillo had an increase of between 70 and 80% in demand in the last three years. Without forgetting, the increase in the cost of containers.

One of the concerns not only of the companies that come to settle but of the real estate developers who in turn provide basic infrastructure services such as energy, is precisely the deficiency in the service. Pedro Valdés, General Director of ESCALA, mentioned that it is necessary to improve the supply of energy as well as to update the distribution networks.

In this regard, Paulina González shared that it is a major challenge to supply energy to companies and meet their requirements in this sector. "The new investments need a lot of energy, so we are distributing by batches, ship size or business line of business."

The underlying issue is infrastructure in general. Manuel Rodríguez Arregui, CEO of AINDA infrastructure and energy, said that it is necessary to change the way in which the infrastructure of ports, railways, highways is built, and later, everything related to the electricity sector. and natural gas, which must work jointly between the government and the private sector.

Of interest: Anticipating an increase in demand, the Guadalajara office market activates construction

The development of suppliers and qualified human talent to take advantage of nearshoring is another driver that will require financing facilities and federal government programs because sometimes suppliers do not have the capacity to cover the volume required by companies.

Finally, a reality is the scarcity of land with good locations and the long times it takes to build an industrial property that has the characteristics that the company needs for its operation. This affects the new demands that demand better construction methods to have the industrial buildings ready in a minimum time and thus those interested in renting them do so as soon as possible.

Paulina González explained that the companies that want to establish themselves in the country require a built ship and want to start their operations in three months and that is only possible if the ship is ready so that those months are only for permits. However, there are no buildings available and the cost of these have increased 15% towards the end of 2021.

In Solili you can consult industrial warehouses available in Guadalajara, Querétaro and Ciudad de México 

Original note