Boosting Nearshoring in Nuevo León

Nuevo León strengthens relationships with local suppliers through nearshoring, improving efficiency and reducing costs. The region is advancing in its economic development and employment strategy.


Boosting Nearshoring in Nuevo León

Nearshoring is gaining popularity in the northeast region of Mexico, where companies are choosing to move their suppliers to closer regions. This approach not only reduces tariff and transportation costs but also increases certainty amid unexpected geopolitical changes.

One of the key benefits of nearshoring is the reduction in transit times for goods, which in turn improves control and flexibility, reducing inventory costs. Additionally, this approach indirectly contributes to reducing the ecological footprint, boosts local trade, fosters job creation, and promotes the development of surrounding areas.

In 2024, Mexico remained the main trading partner of the United States for the second consecutive year, largely due to the geographical proximity of trading partners in the production hub. Despite these advantages, there is still work to be done to bridge the gap between imports and exports.

Business leaders in northeast Mexico are advocating for the search for local suppliers capable of facing the challenges of foreign policy. The region is expected to continue aligning with strategies that promote efficiency, such as Just in Time methodology, thus driving economic growth and international competitiveness.

Recently, the government of Nuevo León announced an economic package to boost SMEs and promote local sourcing, which will require investments in technology and education to effectively compete with major manufacturers in East Asia. Data from the automotive and transportation sector in Nuevo León reflect that a significant portion of inputs comes from national suppliers, although various factors must be considered to fully evaluate costs and profits.

The northeast region of Mexico, composed of Nuevo León, Coahuila, and Tamaulipas, bordering Texas, has attracted investments due to its strategic location and optimizations in industrial processes. The adoption of lean manufacturing practices has allowed companies to improve efficiency in both internal and external processes, resulting in cost reductions for American companies.

This focus on efficient manufacturing is not new, as it is based on principles developed by companies like Toyota in Japan over a century ago. Today, the northeast region of Mexico benefits from this industrial boom driven by nearshoring and the ongoing pursuit of efficiency in production processes.