The nearshoring impact at the close end of 2023 on the growth of industrial projects in Mexico – 31 January 2024
January 31, 2024

The relocation of businesses, known as nearshoring, had a significant impact on the industrial real estate sector in Mexico, giving rise to over 350 construction projects throughout the year. Driven by the growing demand from companies seeking to move their operations to the country to leverage its proximity to the United States.

By the close end of December, indicators revealed that a total of 5.6 million square meters of industrial buildings were under construction nationwide. Despite the ongoing construction process to adapt to supply chain reconfigurations, an analysis by Base Bank highlighted that nearshoring represents a valuable opportunity not yet fully exploited. It is estimated that Mexico attracts only between 10% and 20% of foreign investment related to business relocation.

The Base Bank report emphasizes the concentration of these investment flows in specific states and manufacturing subsectors, indicating that there are regions where nearshoring is still considered a myth, as they have not experienced new investment flows.

It is noteworthy that Monterrey stood out in 2023 with the announcement of a significant investment of over $5 billion by Tesla. However, the city was already positioning itself as one of the main beneficiaries of nearshoring due to its strategic location, massive infrastructure, and a long history of manufacturing vocation.

With over a hundred projects in progress, Monterrey surpassed the mark of 1.5 million square meters of new industrial warehouses under construction last year. The second quarter was the most dynamic period in the region, with the execution of 31 new industrial facilities.



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