As tensions between China and the United States continue to rise, and due to many geopolitical and economical issues, Mexico is starting to replace China as a source of different supplies and has many competitive advantages such as a similar time zone, work culture, and geographical location.

Top 10 Countries investing in Mexico (in Billions of USD)

USA

Canada

Argentina

Japan

UK

Spain

South Korea

Hong Kong

France

China

0

5

10

15

Source: RNIE from Economy Secretary (February 7th, 2023)

Brown Concrete Tower

Mexico has become a popular destination for manufacturing due to several factors:


  1. Proximity to the United States reducing transportation costs and lead times.
  2. Trade agreements: Mexico has an extensive network of free trade agreements with countries around the world, making it easier and more cost-effective for companies to do business in Mexico.
  3. Competitive labor costs: Mexico has a large and growing labor force, with wages that are generally lower than those in the US, China, Europe or any developed countries.
  4. Government incentives: including tax breaks, subsidies, and streamlined procedures for setting up and operating businesses.
  5. Strong manufacturing infrastructure: Mexico has a well-developed infrastructure for manufacturing, including industrial parks, transportation networks, and a skilled workforce with experience in various industries.


These factors, along with others, have made Mexico a highly competitive destination for manufacturing and have led to the establishment of many multinational companies in the country.

Mexico landscape

Construction workers icon

Skilled and affordable workforce

Incentives

Tax incentives for manufacturers

Worldwide Traveling by Plane

Free Trade Agreements with +50 countries

Direct Foreign Investment by segment

Most active manufacturing are automotive, electronic components, car parts, equipment to generate and distribute electricity and basic iron and steel.

Massive media

12.7%

Commerce

6.2%

Construction

3.7%

Financial services

13%

Mining

4.5%

Hospitality

3.7%

Other

1.1%

Transportation

15%

Manufacturing

36%

Source: RNIE from Economy Secretary (February 7th, 2023)