**Mexico Fails to Capitalize on Nearshoring Opportunities**
In recent years, Mexico missed a crucial opportunity to capitalize on nearshoring due to inadequate public investment in infrastructure and a lack of industrial policies. This was highlighted by Ismael Plascencia López, a regional development specialist and president of the northwest region of the National Federation of Economists.
According to Plascencia López, the reduction in public investment discourages and limits private investment. “We could have taken advantage of nearshoring, but we did not create the necessary conditions. Investment did come, but much of it went to countries like the Philippines,” he stated.
Plascencia López also pointed out the absence of prioritized industrial policies both nationally and in regions such as Baja California. He argues that it is essential to foster regional development in Mexico by identifying the strengths of each area. “We are a powerhouse in electronics, medical devices, and automotive production. What comes next? Other countries started by producing foreign cars but eventually launched their own brands, like South Korea with KIA and Hyundai. Why haven’t we had that political support in Mexico?” he questioned.
Despite being a major trade partner of the United States, Mexico remains focused on reducing production costs without significant research or development, said Plascencia López. “We concentrate solely on production, which is about cutting costs. We are important partners, but we are stuck in the most challenging part—cost reduction.”
He also highlighted that Baja California ranks 14th nationally in competitiveness according to the Mexican Institute for Competitiveness (IMCO), despite its border location with the United States. “We are in the middle of the pack in the country. There is a lack of vision regarding industrial policy both federally and at the state level. We need to move beyond expecting the federation to solve our problems. The federation will not do for Baja California what the locals don’t do for themselves,” he asserted.
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**Secondary Article: Mexico’s Missed Nearshoring Potential Amid Global Economic Shifts**
As global supply chain dynamics shift, nearshoring—the practice of relocating business processes to closer, nearby countries—has emerged as a significant opportunity. However, Mexico has not fully capitalized on this trend, primarily due to insufficient public and private investment and the absence of a strategic industrial policy.
Experts suggest that while foreign investments have been attracted to Mexico, many businesses choose to invest in other regions like Southeast Asia due to better infrastructure and supportive economic policies. This missed opportunity is significant, especially given Mexico’s strategic location next to the United States, one of the world’s largest economies.
In contrast, countries like India and Vietnam have successfully attracted foreign investments by enhancing their logistical capabilities and offering incentives for technology and manufacturing sectors. As a result, they have become significant players in the global supply chain, further highlighting the opportunities Mexico has not seized.
The need for improved infrastructure and focused industrial policies in Mexico is crucial for making it a more competitive player in the nearshoring landscape. As businesses rethink their global supply chain strategies, Mexico still has a chance to rectify its course by enhancing regional competitiveness and fostering favorable conditions for investment.