According to experts, the increase in nearshoring in Mexico could lead to an economic slowdown and a decrease in employment, making the region less competitive globally by 2025. Despite the initial benefits and optimism generated by this factory relocation strategy, the lack of innovation and digitization poses significant challenges.
It is noted that, despite the investment of more than $6 billion in industrial infrastructure in 2023, Mexico faces obstacles to its competitive advantage. According to Fernando Olloqui, CEO of Licify, the lack of innovation in digital tools results in higher costs, lower efficiency, and sluggish processes. Currently, Mexico allocates only 0.3% of its GDP to research and development, well below the OECD average of 2.5%, highlighting the need to foster innovation and strengthen the connection between the educational and business sectors.
Other challenges to overcome include a lack of private investment, poor trade infrastructure, and issues with water and energy supply. Despite the continued interest of foreign companies in Mexico, the uncertainty created by tariff wars has generated an environment of doubt. For the future of nearshoring in Mexico, it will be crucial to focus on technological innovation and digitization, as well as modernizing processes and investing in infrastructure to maintain global competitiveness.
The current landscape of nearshoring is influenced by factors such as tariffs, political uncertainty, and changes in trade regulations, forcing companies to adjust their production and distribution strategies. Despite the challenges, foreign investor interest in Mexico is expected to remain, albeit with renewed approaches and strategies. The outlook for nearshoring in 2025 is one of a transitional phase, with fewer foreign companies establishing themselves compared to previous years, reflecting the need for a distinct strategic vision.
In summary, the future of nearshoring in Mexico will largely depend on the country's ability to innovate, modernize processes, and attract foreign investment. Despite current challenges, there remains a positive expectation regarding Mexico's potential as a destination for foreign companies, as long as existing barriers are adequately addressed and a conducive environment for investment and economic growth is promoted.
