PUERTO VALLARTA (PVDN) - Over the next two years, Mexico is anticipated to welcome 453 new foreign companies, bringing a significant boost to the country's industrial sector, according to a study by BBVA Research and the Mexican Association of Private Industrial Parks (AMPIP).
The analysis aims to predict and quantify the impact of nearshoring in Mexico. The study suggests that 20 percent of these companies are likely to be Chinese, underlining the burgeoning interest of Asian companies in Mexico's economic landscape.
The period between 2023 and 2025 is projected to see an average annual arrival of 227 new companies, marking a 9.1 percent annual growth rate compared to the 2018-2022 period.
The report noted that the trade war between China and the United States, initiated in 2018, led Mexico to host 830 new foreign companies, with 20 percent hailing from Asian countries. This figures to an average of 207 new businesses each year from 2018 to 2022, indicating a remarkable increase compared to earlier years.
Moreover, during this period, 21 percent of surveyed companies reported expanding their space within industrial parks, which reflects their confidence in and growth within the Mexican market.
"Industrial park companies offer a complementary vision as they can have direct contact with firms that choose to relocate their production to Mexico," the study stated.
Decisions to establish a business in an industrial park are influenced by several factors such as domestic and foreign market outlooks, trade conditions, treaties like the USMCA, and existing infrastructure including energy, logistics, water, and security.
Nonetheless, for Mexico to fully leverage the opportunities provided by nearshoring, it is crucial to address existing issues. Key challenges highlighted in the report include clean electricity supply at competitive prices, water supply and drainage, public safety, and administrative efficiency.
The survey found that 91 percent of the industrial parks had faced problems related to energy supply, while 63 percent encountered water supply issues.
Mario Veraldo, CEO of MTM Logix, stated that while Mexico faces obstacles in areas like infrastructure, rail connectivity, and truck availability, the nation has strengths including a skilled workforce, geographical advantages, and continual infrastructure improvement efforts.
He said that Mexico's swiftly developing infrastructure puts the country in an unrivalled position for nearshoring. "This trend would greatly benefit the Mexican economy in the short and medium term," he added.
Mario Campa, an international trade expert, noted that in addition to the increased demand for company spaces, the trade balance also signals nearshoring's realization. U.S. imports from Mexico have risen close to 6 percent during the first five months of this year, contrasting with a drop of over 20 percent in imports from China in the same period.
Campa attributed the growth in Mexican imports to a response to declining Chinese imports. He emphasized that the trend was driven not just by geographical proximity, but also by the increased competitiveness of the Mexican manufacturing industry and favourable trade agreements between Mexico and the U.S.
