Nearshoring. The silent revolution redrawing the Mexico–U.S. Economy
- Editorial
- Aug 7
- 3 min read
Amid global geopolitical tensions and supply chain disruptions triggered by the COVID-19 pandemic, the phenomenon of nearshoring has emerged as one of the most significant transformations in the binational economy between Mexico and the United States. Throughout 2024, this strategy of production relocation not only positioned Mexico as a key strategic partner for North America but also reshaped the commercial, political, and technological relationship between both nations. Far from being a passing trend, nearshoring has become a structural policy with deep implications for regional development, industrial competitiveness, and the economic security of the North American bloc.
According to figures from the Inter-American Development Bank (IDB), Mexico attracted over $40 billion USD in Foreign Direct Investment (FDI) during 2024, a 17% increase compared to 2023. Nearly 50% of that investment came from U.S. companies seeking to move their operations from Asia to North America. States like Nuevo León, Jalisco, Coahuila, Chihuahua, and Baja California accounted for more than 70% of this investment, primarily in sectors such as auto parts, semiconductors, advanced manufacturing, and logistics. Simultaneously, U.S. cities like Laredo, McAllen, San Diego, Tucson, and El Paso experienced a boom in logistical and technological infrastructure due to their proximity to Mexico’s new industrial corridors.
Mexican exports to the United States reached a historic high in 2024, surpassing $460 billion USD, representing more than 80% of the country’s total exports. This growth, driven by the relocation of production lines and industrial complementarity under the USMCA framework, positioned Mexico as the U.S.’s top trading partner for most of the year. Additionally, more than 60% of U.S. companies operating in Mexico reported improvements in their supply chains, shorter logistics times, and increased resilience against international disruptions.
The technological component has also taken center stage. In 2024, more than 25 bilateral agreements were signed between universities and innovation centers in both countries to develop specialized talent in robotics, artificial intelligence, Industry 4.0, and cybersecurity. Institutions such as Tecnológico de Monterrey, the University of Arizona, ITESO, and the University of Texas at Austin led binational initiatives that trained over 50,000 students and technicians in digital and industrial skills. This academic cooperation is a strategic axis to build a shared innovation ecosystem capable of increasing the added value of products manufactured in the region.
However, nearshoring is not without its challenges. Despite the widespread enthusiasm, 2024 also revealed structural limitations that could hinder its expansion in 2025. On Mexico’s side, there are bottlenecks in infrastructure—particularly in railways, electricity networks, and water supply in industrial zones. According to the Mexican Institute for Competitiveness (IMCO), more than 35% of the industrial parks in northern Mexico are operating near their water capacity limits, raising red flags about sustainability and future investment attractiveness. Insecurity, lack of legal certainty, and bureaucratic delays also continue to undermine competitiveness in certain regions.
From the U.S. perspective, the main challenge lies in balancing the economic benefits of nearshoring with domestic political pressures to preserve local jobs. While nearshoring has driven job growth in logistics and technology sectors in border cities, it has also been used in electoral debates surrounding immigration, security, and international trade—especially during the 2024 presidential elections. The U.S. administration will need to strike a balance between productive integration with Mexico and the expectations of its electorate.
Looking ahead to 2025, nearshoring demands a long-term shared vision between Mexico and the United States. Strengthening binational mechanisms for regional planning, ensuring sustained investment in smart infrastructure, and expanding educational and technological alliances will be essential. Furthermore, fully leveraging the USMCA, along with coordinated public policies, can transform North America into the most competitive and resilient production platform of the 21st century. If both countries can overcome current obstacles, nearshoring will not only reactivate the regional economy—it will usher in a new era of strategic interdependence based on trust, innovation, and sustainable development.
Written by: Editorial
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