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Mexico Manufacturing News & Blog

Asian and American Manufacturing Companies Are Moving to Mexico

Asian and American Manufacturing Companies Are Moving to Mexico

The commercial conflict between United States and China, the supply chain vulnerabilities revealed by the pandemic and Russia's invasion of Ukraine, have accelerated the relocation of Asian, American Union and European companies to Mexico

It would be the third wave of nearshoring, mainly manufacturing, logistics, automotive, aerospace and electronics firms, which see the country as a solution to continue their production.

The relocations of international companies to Mexico are accelerating trends such as nearshoring or installation near suppliers and offshoring or transfer of services from foreign firms to the country, such as the Danish medical device manufacturer Ambu, the Chinese furniture producer Keeson Technology and the U.S. toy manufacturer MGA Entertainment.

So far this year, international companies such as Samsung, Daewoo, Amazon, Dongkuk Steel, Nissan, Jabil, Heineken, Bosch, Alsea, Pirelli, Walmart, The Home Depot, DiDi and Mercado Libre, among others, have announced millionaire investments in the country to expand operations, increase production and reduce operating costs derived from the COVID-19 pandemic.

Sergio Mireles, CEO of the real estate platform Datoz, explained that the industrial market has been boosted during the pandemic by the migration of companies to Mexico, since last year the gross absorption of industrial buildings reached 5.8 million square meters, while at the end of the second quarter of 2022 it already exceeds 2.7 million meters.

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Co-Production International, Inc. Administrative Service Provider San Diego, California

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