The Mexican Counclil for Foreign Trade, Investment, and Technology (COMCE) projects that Mexico will attract $48 billion in Foreign Direct Investment (FDI) over the next two to three years, driven by the rise of nearshoring. This trend is positioning Mexico as a key destination for companies looking to relocate parts of their supply chains.
Quality Exports as a Key Advantage
According to Sergio Contreras, president of COMCE, Mexico’s primary draw isn´t just its proximity to the U.S. or its trade agreements. He emphasized the country’s “quality exports” and skilled labor as critical factors. He cited Pirelli’s success in Mexico, where the company initially invested $200 million and has since reinvested an additional $600 million, bringing its total to $1.2 billion. The demand for tires, particularly for SUVs in the U.S., has driven this continued investment.
Strong FDI Growth in 2024
COMCE also forecasts that Mexico will capture $40 billion in FDI in 2024, an 11% year-on-year increase. This growth is not just from reinvestment but from new companies entering Mexico. Susana Duque, general director of COMCE, stated that the organization will track these new investments closely as they represent significant opportunities for job creation and economic development, particularly in advanced manufacturing and micropocessors.
Aguascalientes Leading the Way
Aguascalientes is one of the regions benefiting from this wave of investment. Esaú Garza de Vega, Secretary of Economic Development, Science, and Technology, highlighted the state’s role in attracting FDI to automotive plants, especially in transitioning from internal combustion engines to electric vehicles. Japan, which accounts for 60% of the state´s FDI, will be the special guest at the 30th Mexican Foreign Trade Congress in October 2024.
Confidence in the Future
Despite some challenges, Contreras remains confident in Mexico’s economic outlook noting that the business environment is stable and continues to grow.
REFERENCES:
- El COMCE proyecta 48,000 millones de dólares de IED por nearshoring. (2024, 10 septiembre). El Economista. Recuperado 12 de septiembre de 2024, de https://www.eleconomista.com.mx/empresas/El-Comce-proyecta-48000-millones-de-dolares-de-IED-por-nearshoring-20240910-0074.html
