According to Credit Suisse, from last November to 2023, Mexico has attracted $2268 million in near-shoring investments, with corporate auto businesses in the spotlight.
In a Nearshoring Tracker report, brokerages pointed to the $850 million investment in BMW’s electric car plant as the most relevant automotive investment.
Other sectors, such as electronics, are expanding their operations in Mexico, contributing 13%.
The Swiss bank reported $1.153 billion in nearshoring operations in Mexico in November, up from $150 million in December. So far this year, they have reached his 965 million, highlighting BMW’s investment.
The country has also attracted 75 and 100 Canadian, Chinese, South Korean and Japanese companies that have set up or expanded operations in Mexico, according to the president of the Mexican Association of Private Industrial Parks (AMPIP).
Nearshoring is an outsourcing strategy in which a company transfers part of its production to a third party located in another country but with a nearby destination and similar time zone.
Credit Suisse also emphasized that there is clear evidence of a nearshoring process. For example, international shipments outside of Mexico, particularly to the United States, have increased by 20%, and regional banks such as Banco del Bajío have seen nearshoring activity increase by 5% of their loan portfolios.
Meanwhile, the report sees nearshoring as a potential engine of long-term growth for various industries in Mexico, including real estate.
Credit Suisse noted that given the recent bottlenecks in the supply chain, work to migrate to Mexico is likely to continue, which could create more opportunities for at least the next three years.
However, he warned of a lack of investment in infrastructure such as energy. Given the energy uncertainty, this may cause investors to reconsider their investments.