Monterrey, Nuevo León, January 23, 2023.- The fourth edition of Credit Suisse’s Mexico Nearshoring Tracker report provides an overview of the most important points and data on the arrival of companies in our country due to this macro trend. The company assures that nearshoring is a potential driver of long-term growth in various industries in Mexico.

The study found that compared to relocation or offshoring, Mexico recorded a 46% drop in FDI, mainly due to the outflow of accounts between companies. However, this does not cloud the long-term outlook, as the balance of new investments continues to increase by 25%, year-on-year.

In addition, during the last period, it was found that:

In November they crawled 5 manufacturing plantsannounced, for a total of $1.1 billion. Most of the new investment came from automotive department (78% of the amount disclosed), but there are also other sectors that are expanding their activities in Mexico (such as electronic, 13% of the amount). The most relevant announcement was the factory of BMW electric vehicles (~$850 million) in San Luis Potosí, which will be officially announced in February 2023.

According to the president of the Mexican Association of Private Industrial Parks (AMPIP), the country has attracted between 75 and 100Canadian, Chinese, Korean and Japanese companies that has established or expanded its operations in Mexico.

Although total FDI is down 4% since the beginning of the year in real terms (adjusted US PPI), the stock of new investments continues to grow by 25% year-on-year. Moreover, a slowdown was already expected, considering that most investments are made in the first half (70% in 2021).

Despite the less influential data on the IDECredit Suisse remains positive on the momentum of the industrial rentstaking into account the lowest vacancies ever.

Exports, on the other hand, are expanding more slowly. Mexico’s export volume grew only 2% year-on-year last November (in real terms, adjusted by the US PPI). Exports of capital goods rose 7% year-on-year, while consumer goods fell 3% and intermediate goods remained stable.

According to AMPIP, nearshoring activity is expected to generate $30 billion for Mexico in 2022 and should continue to gain momentum as manufacturing and exports grow (+5% and +17% since the start). of the year, respectively). . Given recent supply chain bottlenecks, the migration of operations to Mexico is expected to continue, which should create opportunities for at least the next three years; however, there is still a lack of investment in infrastructure, such as energy supply, for the trend to accelerate.

Credit Suisse sees clear evidence of nearshoring in the international shipping process, especially to the US, expanding by 20% (80% of DHL MX packages are bound for the US), and regional banks indicate that Nearshoring activities represent 5% of their loan portfolio (Banco del Bajío).