EconomyFinancialMexico requires investments to take advantage of nearshoring beyond...

Mexico requires investments to take advantage of nearshoring beyond Asia

The world is going through a difficult economic situation, the result of factors such as the COVID-19 pandemic, the trade conflict between the United States and China, and more recently the war between Russia and Ukraine.

For Mexico, these variables have translated into inflation coming from the neighboring country to the north; however, nearshoring has worked as a retaining wall, specialists agreed during the Inter.Mx Expansión Summit 2022.

“Hand in hand with the T-MEC, it has been key in the Mexican economy. We can observe it in the industrial parks of Tijuana, Ciudad Juárez and Monterrey; all are occupied by foreign companies. If this is done well, it is expected that investments of 30 million dollars will also arrive in expansions of operations and transfers of factories from Asia to Mexico, with this the country is expected to grow up to 2.6 points of GDP”, said Gina Diez Barroso, founder of Dalia Empower.

Hernán Barbieri, COO of Kidzania, added that Mexico is also attractive due to its professionalism and work preparation. However, in order to take advantage of the benefits of the increase in foreign trade in Mexico, strategies must be created that reinforce the confidence of companies.

“If important investments are not made in infrastructure, clean energy, access to competitive energy, our country will not be able to reach the potential that the nearshoring phenomenon is offering the country. Despite external situations, Mexico can emerge victorious in the competitive world,” said Alberto de la Fuente, executive president of Empresas Globales.

“And to this is added security, to have a clearer vision with the issue of sustainability, we need as a country to have policies with greater transparency, promote innovation and technological development to take advantage of nearshoring even more,” he explained .

For Barbieri, Mexico does not have good marketing abroad, so efforts must be made to demonstrate what it offers.

Mexico has many opportunities to grow, “but if they are not taken, you can fight and foreign companies, although some stay in the country, because they know that investment is safe with battle, others will simply seek to go elsewhere,” he said. Víctor Almeida García, CEO of Interceramic.

Is Mexico taking advantage of this commercial opportunity in the world?

Although China is a very large market, there are also opportunities in other countries that can benefit Mexican companies. “China is a huge and important market and I feel that my companies are not ready for that market, but we have seen greater opportunities in India, which is also a very large market,” said Gina Barroso.

Regarding the European Union, Alberto de la Fuente stated that trade between Mexico and Europe is above 65,000 million dollars and the main exports made by Mexico are electronics, oil, gas and carbon. Although growth in Europe is low, sectors such as aeronautics and the automotive industry could be an opportunity for Mexico to look at other parts of the world, and not just the United States.

In Central America, the CEO and president of the Interceramic Council, Víctor Almeida García, mentioned that it is a small market that is very difficult to penetrate and has major drawbacks such as logistics, and the key that his company has found to enter the market is to make products in a local, to generate an impact in the market.

#Between the lines | The economy and business, seen by Antonio del Valle

Differences in any commercial agreement are the rule. In times of NAFTA they happened, but now with the T-MEC the tension has intensified with the electrical chapter.

The challenges for the business ecosystem after Covid-19

Generational changes and the evolution of technologies are the new challenges that companies face in doing business.

Mexico requires reforms to grow, says Nouriel Roubini

The Mexican government is optimistic that the economy will grow 3% in 2023, especially when there are threats of a global recession, says the so-called "Dr. Doom"

Mobility is everything in a city scheme

Specialists agreed that the creation of these spaces is urgent, but it will not be possible without the joint work of society, public and private initiative.

Education and sustainability, the goals that companies must pursue today

76% of companies in Mexico prepare a specific corporate responsibility report, according to the consulting firm KPMG,