Mexico City, Being able to relocate the presence of companies in territories that allow their production to be closer to the final consumer is a priority for those that are listed on the stock markets, according to the study: Evidence of nearshoring in the Americas? carried out by analysts from the Bank for International Settlements (BIS).
“Nearshoring is a priority among Mexican companies that list companies on the stock market, with an increasing proportion of those who mention the topic in their calls with analysts in recent years,” is mentioned in the document prepared by Ana Aguilar, Julián Caballero, Jon Frost and Alejandro Parada.
Specialists indicated that the opportunities offered by nearshoring have aroused much interest in the region, particularly in Mexico, due to its international trade.
The Inter-American Development Bank estimates a potential increase of $78 billion in exports of goods and services from Latin America and the Caribbean, with $35 billion in exports of goods coming from Mexico, along with
with 8 billion dollars from Brazil and 4 billion dollars from Argentina.
In turn, the analysts referred to the GBM financial group, which developed the “Nearshoring Barometer”, a tool that, based on data, identifies the areas where this practice has materialized.
In its article Main areas of promotion of nearshoring in Mexico, GBM highlighted that one of the key indicators of its barometer has to do with trade between Mexico and the United States, since imports have increased considerably; At the end of 2023, Mexico became the largest supplier to the North American country, surpassing China and representing 15.4 percent of US imports.
For GBM, the impact of nearshoring is clearly visible in investment announcements. From October 2022 to January 2024, more than 80 foreign companies have demonstrated their interest in investing in Mexico, totaling around $50 billion in investment. The north and center of Mexico are the destinations that are being favored the most.
“Another clear example can be found in the increase in traffic and accommodation indicators in Mexico,” the study states.
He adds that the circulation on the federal highways that intervene so that nearshoring meets its objective has exceeded the total traffic since 2019. And, although the beaches continue to be the main driver of hotel occupancy, the areas that are related to nearshoring are already close to reaching them.
The BIS, for its part, highlighted that internal investment also favors nearshoring.
“At 215 percent of gross domestic product (GDP), private investment reached its highest level in the last four decades in 2023, which has been associated with increased non-residential investment in industrial parks in northern Mexico, and greater imports of machinery and equipment,” said the BIS specialists.
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