Assessing Mexico's Nearshoring Potential
Based on events such as the Covid-19 pandemic, increasing competition between the United States and China, and the Russian invasion of Ukraine, there is an ongoing discussion about the reorganisation of global supply chains. As a result, the term “nearshoring” has gained popularity in recent times. Nearshoring could be defined as a corporate strategy that involves relocating production close to destination markets, with the aim of reducing supply chain disruption risks. This report examines the potential of Mexico for nearshoring, considering the escalating discussion surrounding the restructuring of global supply chains and the recent announcements made by important companies to relocate their production to the country. In particular, this report analyses a set of issues deemed important for firms contemplating relocating their manufacturing operations in close proximity to the US market: macroeconomics, foreign trade relations, internal politics, security, energy, and demography.
