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Home » Mexico’s Industrial Hubs Grow as Part of Shift Toward Nearshoring

Mexico’s Industrial Hubs Grow as Part of Shift Toward Nearshoring

MANY COGS INTERACT TOGETHER, ONE PAINTED WITH THE FLAG OF MEXICOStock-natatravel-1261506189.jpg

Photo: iStock / natatravel

February 2, 2023
SupplyChainBrain

Global shifts in manufacturing and sourcing are on stark display in Mexican factories along the border with the U.S., reports The Wall Street Journal. Plants and industrial parks in the exporting hub of Tijuana are humming at nearly full capacity while in Ciudad Juárez, across the border from El Paso, Texas, recruiters are rushing to hire workers for companies arriving or expanding operations.

The energetic activity is the result of growing numbers of companies moving production and equipment to Mexico as they seek a manufacturing hub closer to the U.S., part of a broader shift in global trade. Some companies are relocating from Asia, while others are investing to raise output of goods that are exported tariff-free to the U.S. 

The pace of the growth is putting a premium on logistics capabilities, including distribution centers positioned to quickly and efficiently reach U.S. customers.

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