A NEW COMMERCIAL CONQUEST HAS ARRIVED TO REVOLUTIONIZE THE MEXICAN SECTOR

Its popularity began after the pandemic, where companies faced the need to strengthen their supply chains by re-localizing their manufacturing (T1) or specialized suppliers for T1 (T2), especially from Asia to North America.

The main industries that have accelerated the phenomenon are automotive, electrical, food and beverage, energy, aluminum, plastics, among others.  Thanks to the report "Nearshoring IV: Potential Sectors and Industries" it is known that in the medium term (in the next 3 to 5 years) 68% of the nearshoring that will arrive will be in manufacturing activities, and the other 32% will represent logistics activities.

Strengthening the logistics offer for the domestic and international markets that will be arriving will benefit Mexican commerce, since nearshoring has revolutionized the rules of the game and now construction and real estate companies are looking to offer flexibility, proximity, key locations and quality operations in their industrial parks; above all, the presence of new companies in Mexico allows domestic companies to improve their business network, mainly in the manufacturing and logistics sectors.

For their part, public and private sector companies continue to work on increasing public safety in the country, generating new environmental and energy policies that promote environmental care, investing in federal roads for the transportation of goods, and ensuring water supply, to name a few, to continue to be an attractive geographic location for nearshoring.

‍

Find out some of the figures that nearshoring will have an impact on...

Grupo Monex, recognized for being a group of financial specialists in international markets, comments that investments for the next 3-5 years will amount to 130 billion pesos.

DHL Global Forwarding, an international logistics company for courier and parcel services, reports that "the demand for transportation services will have an average annual growth of 15% in the next decade, [...] driven mainly by nearshoring" (Pilar Juarez in Revista Transportes, 2024, para. 1-2).

‍

A new area of opportunity

The arrival of new companies in the country strengthens Mexico's labor supply, which in turn opens a new area of opportunity for trucking companies.

As 50% of Mexico's workforce commutes home from work by means of personnel transportation, the installation of foreign companies in the country demands new buses to transport their workers, which opens a direct sales line with the automotive sector. Frank Gundlach, General Director of Volkswagen Truck & Bus Mexico, mentioned in an interview that the auto transport sector grow 30% in 2023, and will grow 15% in the first quarter of 2024, mostly thanks to the nearshoring phenomenon.

‍

In relation to the above, we can visualize that the manufacturing and logistics sector is becoming stronger with the arrival of international companies in the country that generate very important work networks with national companies, but at the same time, Mexican manufacturing and automotive companies are also innovating to benefit from this phenomenon called nearshoring.

‍

‍