Have you heard about Nearshoring to Mexico?
It would give the region almost $78 billion dollars in new exports, particularly pharmaceutical, textile, automotive and renewable energy.
For the global economy, in 2023 uncertainty will continue to prevail, however, certain industries will continue to expand so they will seek to take advantage of the opportunities that every crisis brings, since historically, in the moments of greatest crisis is where the largest business opportunities arise.
This was announced by Newmark in its analysis ‘Nearshoring Outlook for 2023′, and indicated that foreign trade was one of the items most affected by the pandemic and that it is still recovering, given that the suspension of commercial activities, brought with it disruption in supply chains around the world, which directly impacted the prices of transport, energy and a significant drop in sales that is reflected in inflation globally.
Also, China continues to implement Zero Covid policies, which implies extensive confinements, so it is proposed that around 79% of US manufacturing companies have already started or have plans to relocate part of their operations in North America, the so-called nearshoring.
According to estimates by the Inter-American Development Bank (IDB), nearshoring opportunities in the short and medium term for Latin America would mean up to 78 billion dollars in new exports of products and services, particularly from industries such as pharmaceuticals, renewable energies, textiles, automotive, among others.
Of this total benefit, Mexico would be taking around 35 billion dollars, which undoubtedly profiles the country as one of the largest beneficiaries of LATAM, if you know how to take advantage of this great opportunity.
By the end of 2022, both the industrial markets of the border of Mexico such as Tijuana, Mexicali, Ciudad Juárez and Nuevo Laredo, as well as the Northeast and West region of the country such as Monterrey and Guadalajara, have raised historical absorption figures with leases of industrial surfaces above 18 thousand square meters (m2).
And therefore vacancies less than 1% of the total inventory of industrial buildings for rent, which reflects the great wave of companies from various sectors that, as a measure to reduce the risk of partial or total closures of operations in Asia, land in those cities and states that have a skilled workforce, world-class infrastructure and services to receive them, that seek to establish themselves in an agile, orderly and formal manner to start their operations in Mexico.
While it is true that there are regions where the landing of new companies has focused as a result of nearshoring to Mexico, it is also worth noting that this has led to the availability of class A industrial spaces in these regions being very close to ‘zero’, said Abraham Fernández, director for the industrial sector of the consultancy in his analysis.
He added that the periods to have new parks and industrial buildings of first level, is at least 6 to 8 months in terms of its construction and could reach 2 or 3 years the complete development of new parks.
Hence the importance of highlighting regions such as El Bajío, which include states with greater and better infrastructure in the country such as Guanajuato, Querétaro, San Luis Potosí and Aguascalientes; They currently have an available inventory of around 3% of world-class industrial buildings, which are practically ready to immediately receive companies looking to settle in Mexico.
In addition to offering infrastructure and services such as energy, water and security among several others, without forgetting the strategic locations and connectivity for the transfer of goods to the border, center and south of the country, which allow establishing profitable and efficient operations almost immediately, concluded the executive.
Source: Real state market