Nearshoring Boom in Mexico: 2024 Poised for Record Growth

The winds of change are blowing through the world of manufacturing and logistics, and Mexico is emerging as a prime destination to catch them. 2024 is shaping up to be a banner year for the Mexican industrial sector, with a projected 12% increase in gross leasable area thanks to the construction of over 433 new industrial warehouses. This surge is driven in large part by the increasing popularity of nearshoring.

What is nearshoring, and why is Mexico such a hot spot?

Nearshoring refers to the practice of moving manufacturing or service operations to a closer location, often to a neighboring country. In the case of the US, Mexico presents a compelling nearshoring option due to several factors:

• Proximity: Reduced transportation costs and lead times compared to overseas locations like Asia.
• Favorable trade agreements: NAFTA (now USMCA) streamlines trade between the US, Mexico, and Canada.
• Skilled workforce: Mexico boasts a large pool of qualified workers experienced in manufacturing and logistics.
• Modern infrastructure: The country is continuously investing in its infrastructure, making it easier to move goods.

The Rise of the Mega-Warehouse

The type of industrial space being developed in Mexico reflects the evolving needs of nearshoring companies. The trend is leaning towards larger warehouses, averaging a significant 23,000 square meters. These "mega-warehouses" cater to large-scale logistics and manufacturing operations, providing ample space for efficient production and inventory management.

Beyond size, these warehouses prioritize:

• Advanced technologies: Integration of automation and other innovations to boost efficiency.
• Flexible layouts: Adaptable spaces to accommodate diverse business needs.
• Sustainability: Eco-friendly features to minimize environmental impact.
• Security: Robust security systems to protect valuable inventory and operations.

Strategic Locations for Streamlined Operations

Mexico's northern region is poised for the most significant growth in industrial space, with Monterrey leading the pack. This strategic positioning allows companies to benefit from well-established transportation networks and proximity to the US border. However, central and Bajio regions shouldn't be overlooked. Major cities like Mexico City and industrial hubs like Queretaro offer excellent last-mile delivery options and established manufacturing ecosystems.

2024: The Year to Capitalize on Mexico's Industrial Boom

With a booming industrial sector, a skilled workforce, and a strategic location, Mexico presents an unparalleled opportunity for companies seeking to optimize their supply chains through nearshoring. If you're considering nearshoring to Mexico in 2024, get in touch with us today to explore the exciting possibilities!

‍

‍