US EditionMexico's Nearshoring Juggernaut Comes to a Halt as FDI Levels Crash on Tariffs
3 Articles
3 Articles
The activity of global companies seeking to relocate their operations and supply chains in Mexico, a process known as nearshoring, paused.This is explained by the atmosphere of tariff uncertainty and global trade tensions, while in the North American region the joint review of the T-MEC is approaching. “We are talking about the fact that nearshoring may no longer be so nearshoring,” said Omar Troncoso, partner and CEO of Kearney Mexico, who last…
Mexico's nearshoring juggernaut comes to a halt as FDI levels crash on tariffs
Mexico’s allure as a nearshoring magnet keeps wobbling, tossed by geopolitical tensions and relations with its northern neighbour as well as from domestic challenges, not least in the logistics arena. Foreign investment has slowed and uncertainty over US tariffs continues to hold back new developments. Earlier this month the Mexican government caved in to pressure from Washington and restored traffic rights to US passenger airlines to the capita…
For decades, Mexico presented itself as a country of cheap labor in order to attract investment. This effectively motivated foreign companies, but generated large wage gaps with several of the trading partners. The reality has not changed much in recent years, yet the concept became more sophisticated with the word “nearshoring” in the commercial slang.The Bank of Mexico made an analysis of the first wave of what was popularized as nearshoring, …
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