A common new word in the business environment is NEARSHORING, Mexico is in a particularly advantageous geographical position to benefit from this new movement.
Mexico has much to offer for foreign companies, which perceive the country as a safe investment destination not only because we are neighbors of the world’s largest economy, but also because we currently have very favorable trade agreements with the United States, the European Union and the most prosperous economies in Asia.
There are three regions will benefit the most from nearshoring: Monterrey, Nuevo Leon, Mazatlan, Sinaloa and the bajio region (Mexican region integrated by: Aguascalientes, Guanajuato, Michoacán, Querétaro, San Luis Potosí y Zacatecas) said by Queretaro Innovation Logistics Cluster (CILQRO).
Michoacan recently announced its desire to become a logistic hub in western Mexico. It is therefore preparing a strategy to exploit its logistics capabilities.
Michoacan is a state that has at least three facilities that could boost its logistics capabilities: the Lazaro Cardenas port, the Bajio Uno Morelia industrial park in Morelia and the Queretaro land reserve, near Morelia International Airport.
The most important is what The Governor of Michoacan, Alfredo Ramírez Bedolla called the industrial reserve next to the Lazaro Cardenas port. According to Ramírez, the Lazaro Cardenas port features over 1,000ha for the development of logistics and industrial infrastructure, and the state government is collaborating with the National Port System Administration (ASIPONA) to refurbish these spaces. Additionally, on Nov. 24, 2022, the state government announced that Walmart and the gypsum board producer Panel Rey will move their logistics operations to the state. According to the local government, this is proof of the trust companies have in the state.
After the announcement of a potential Tesla investment in Mexico, steel producers expressed their willingness to participate in the company’s production supply chain. The steel sector stated that it is prepared for the forecasted increase in demand and is ready to other companies, too, as it has the required technology.
All of Mexico’s states are involved in the steel industry to some extent, although most of the production is concentrated in the north, particularly Nuevo Leon and Coahuila as well as Michoacan, whose steel industry has been growing owing to important investments of ArcelorMittal. San Luis Potosi, Puebla, Hidalgo, Tlaxcala, the State of Mexico, Baja California, and Jalisco participate to a lower but no less important degree.
Credits: Mexico Business News