Introduction to Nearshoring and Its Impact on Mexico
The phenomenon of companies relocating, known as nearshoring, has had a positive and measurable effect on the competitiveness of Mexico’s regions, according to the first edition of the Regional Competitiveness Index (ICR) 2026, presented by the Mexican Institute for Competitiveness (Imco).
The Regional Competitiveness Index (ICR) 2026
This study, for the first time, measures a region’s ability to attract and retain talent and investment from a regional perspective. The benefits are concentrated in the industrial corridors of northern and central Mexico.
Northeast Region Leads the Way
The northeast region, comprising Coahuila, Nuevo León, San Luis Potosí, and Tamaulipas, has solidified its position as the most competitive region, demonstrating a high capacity to generate, attract, and retain talent and investment. The northwest region – Baja California, Baja California Sur, Chihuahua, Durango, Sinaloa, Sonora, and Zacatecas – follows closely in second place nationally.
Historical Context and Success Stories
Óscar Campo, Director of Economic Development at Imco, explains that nearshoring is not a new concept but rather a trend that emerged with Mexico’s trade liberalization and integration into North American production chains following the North American Free Trade Agreement (NAFTA).
Campo highlights the success of regions like Chihuahua and Saltillo in adapting to the automotive industry, as well as Querétaro’s growth in aerospace due to the arrival of major firms generating demand for specialized talent. He also mentions the transformation of the footwear leather industry to cater to the automotive sector, all of which are results of nearshoring.
Continuity in Projects and Regional Collaboration
Imco emphasizes regional collaboration as a viable path for economic growth in states, citing the concept of Special Economic Zones (SEZs) as a regional development project during Enrique Peña Nieto’s administration. Although it lacked continuity, the idea was promising.
Campo acknowledges that it’s risky to determine if Mexico can still capitalize on the relocation trend amidst uncertain trade relations with the United States. However, 2025 data shows Mexico had its best exportation year in history, indicating that the country remains competitive and attractive.
Key Investments for Competitiveness
Campo stresses the importance of internal decisions for competitiveness, such as investing in logistics (ports, airports, railways, and highways), energy (electricity and natural gas), the rule of law, and human capital.
Key Questions and Answers
- What is nearshoring? Nearshoring refers to the relocation of businesses to neighboring countries, in this case, Mexico, taking advantage of proximity to the US market.
- Why is regional collaboration important? Regional collaboration fosters economic growth by facilitating the integration of states into regional development projects.
- What factors contribute to Mexico’s competitiveness? Factors include strategic location, skilled workforce, robust infrastructure, and a stable political environment.
- What investments are crucial for maintaining competitiveness? Investments in logistics, energy, legal framework, and human capital are essential for sustaining competitiveness.
