According to the Desarrollo Económico e Industrial de Tijuana, A.C. (DEITAC), real estate investors will spend US$635 million to acquire land and construct industrial buildings to accommodate businesses generated by nearshoring to the industrial hub of Baja California.

The representative of the private organization in charge of organizing, planning, and managing the arrival of new investors to Baja California recalled that most of the companies attracted by nearshoring with interest in setting up in Tijuana are from the United States, Asia, and European countries such as Finland and Germany.

It is generally known that the surge in popularity of nearshoring over the last year is a result of the trade conflict between the United States and China, the interruptions caused by the Covid-19 outbreak to global supply chains, as well as the war that started earlier this year between Russia and Ukraine.

Nearshoring is seen as a facilitator by businesses in North America, Asia, and Europe since it enables them to shift manufacturing processes from the far locations to cut down on the cost of manufacturing at their area of origin or somewhere nearby.

By the end of 2023, the industrial warehouses being built by 17 real estate developers will have 500 thousand square meters of total rentable industrial space, and the development of these spaces in the border region will position Tijuana as a significant and privileged location for nearshoring. An estimated 635 million dollars will be invested in just land and building. According to Deitac, this would lead to the creation of between 15 and 20 thousand direct and indirect jobs.

The investment aims to provide infrastructure to support the growth of businesses that are interested in nearshoring due to its benefits such as reduced transportation costs, increased agility, and shorter supply chains. Tijuana's strategic location and skilled workforce make it an attractive option for companies looking to move their operations closer to home. As a result, Tijuana is expected to become a hub for nearshoring, providing new job opportunities and supporting the region's economic growth.

This trend has led to a rising demand for shelter companies like Co-Production International, which provide a streamlined way for businesses to establish their operations in Mexico. By partnering with CPI, we will help you bringing a robust network of strategic partners and dedicated teams to get up and running. Human resources, recruitment, hiring, and compliance with labor laws fall under CPI’s Shelter IMMEX Program, which allows manufacturers to focus 100% on manufacturing while CPI handles the rest.

Additionally, Mexico's manufacturing sector continues to thrive, supported by its skilled workforce, favorable business environment, and proximity to the US and Canada. As more businesses seek to take advantage of these benefits, shelter companies are likely to play an increasingly important role in supporting the growth of nearshoring in Mexico.

Further Reading:

• What Does Mexico Manufacture? Products You Didn’t Realize Were Made in Mexico
• Why is Mexico a Place to Invest?
• 5 Good Reasons to Choose Shelter Services in Mexico