Mexico has surpassed low-cost Asian countries and the United States with relocation, highlighted by an analysis by the US global consulting firm, Kearney.

With an initial base in 2013, an index prepared by Kearney on the evolution of imports of Asian and Mexican manufactures against the gross national manufacturing production of the United States, shows an upward trend in Mexico until reaching 1.76 points in 2022, surpassing the trajectory of the Asian countries (1.62 points) and the United States (1.22 points).

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The Asian economies included in this study are China, Vietnam, the Philippines, Malaysia, Indonesia, Pakistan, Sri Lanka, Taiwan, Thailand, Bangladesh, India, Singapore, Hong Kong, and Cambodia.

Mexico has gained significant share vis-a-vis other countries involved in imports to the United States and has also outpaced recent growth in US domestic manufacturing output, even when corrected for record inflation in 2021 and 2022. This growth in imports US imports is driven by four types of companies. First, US companies that already source from China are doubling down.

Second, most of the products made in Mexico that supply the US market come from US or European companies that want to increase their capacity in Mexico. Also, more and more Chinese companies are manufacturing finished products in Mexico to serve their US customers, taking advantage of the conflict in US-China relations.

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Lastly, following in his wake, second and third tier Chinese suppliers are arriving in Mexico to serve original equipment manufacturers.

According to the Ministry of Economy of Mexico, the latest figures available indicate that Chinese investment in Mexico has only increased to about 225 million dollars. But markets like Tijuana, Juárez and Monterrey are building more and more industrial parks.

For example, Hofusan in Monterrey will add another 100 hectares to the nearly 430 that were made available exclusively to Chinese companies. Regarding US imports from Mexico, automotive transportation equipment continues to lead, followed by computer and electronic products.

Other sectors, such as medical devices, pharmaceuticals, aerospace, furniture, and building materials, are seeing growth in their US import numbers.

In Solili you can consult industrial warehouses available in Reynosa and Saltillo

Original note