Introduction
Nuevo León, a Mexican state with only 4% of the national population, has contributed significantly to the country’s economy. In the fourth quarter of 2024, Nuevo León accounted for 27% of the Gross Domestic Product (GDP). Under the current administration, the state has confirmed investments totaling $73 billion, generating over 361,500 new jobs through 169 new projects and 179 expansions.
Nearshoring Impact and Investment Growth
Emmanuel Loo, the head of the Secretaría de Economía in Nuevo León, highlighted that nearshoring began to show its effects from 2022. The state’s Foreign Direct Investment (FDI) reached $7.1 billion in 2022, nearly double that of 2021. Due to the relocation of companies because of tariffs imposed on China, FDI in Nuevo León soared to $20.7 billion in 2023 and reached a record-breaking $33.7 billion in 2024.
So far in 2024, confirmed FDI amounts to $8.8 billion. Loo emphasized that despite facing uncertainty regarding neighboring countries, there are approximately $10 billion in pending investments waiting to be confirmed.
Strategic Sectors and Success Stories
Nuevo León boasts several strategic sectors, including automotive, home appliances, and heavy machinery. The state produces around 60-70% of home appliances consumed in the United States and Canada, bolstered by specialized supply chains.
- Automotive Sector: Companies like ZF, Jabil, and Aptiv have found success in Nuevo León.
- Specialized Engineering: The state has a growing pool of 900 engineers specializing in autonomous vehicles, attracting global attention from companies seeking their expertise.
- Food and Beverages: Nuevo León produces nearly 90% of Mondelez’s Oreo cookies and 95% of Hershey’s chocolates consumed in the United States.
Loo mentioned that there are $700 million in orders from these strategic sectors, inviting investors to join and get certified through the Secretaría de Economía’s support.
Investment Sources
The United States leads as the origin of investment projects with 107, followed by China with 71, South Korea with 23, Germany with 11, France with 10, and Sweden, home to Volvo and other investing companies.
Key Questions and Answers
- What is nearshoring? Nearshoring refers to the relocation of business processes to companies in nearby countries, often for cost reduction and improved efficiency.
- Why is Nuevo León significant for nearshoring? Despite its small population, Nuevo León contributes significantly to Mexico’s GDP and has become a hub for strategic sectors like automotive, home appliances, and food & beverages.
- Which sectors are thriving in Nuevo León? The automotive, home appliance, and food & beverage sectors are flourishing in Nuevo León, attracting both domestic and international investments.
- What are the key figures for Nuevo León’s investments? The state has confirmed $73 billion in investments, generating over 361,500 new jobs through 169 new projects and 179 expansions.
