Greater Brownsville Incentives Corporation presents advantages for nearshoring in Mexico and the United States

United States-Mexico Alliance before nearshoring

Since Mexico is the main trading partner of the United States,  The Greater Brownsville Incentives Corporation (GBIC) recently held a business meeting to present the various scenarios of growth, attraction of new investments and development of industries in the face of nearshoring . 

Duncan Wood, Wilson Center 's vice president of strategy and new initiatives , led the dialogue, as well as Jerry Briones, interim executive director of GBIC , who recognized the importance of these meetings for future economic growth, as well as Helen Ramírez, city administrator. of Brownsville, and Roy de los Santos, city commissioner for the Third District. 

The economic situation of both nations "is at the ideal moment," as they have a trained workforce with experience in various manufacturing processes and industrial sectors, Duncan said. 

“The alliance between Mexico and the United States has undoubtedly set a pattern in commercial development and in attracting investment. Nearshoring is already reflected in millions of dollars, for example, with the recent Tesla announcement in Nuevo León; but that is just the tip of the iceberg, as the projects will keep coming,” he added. 

Advantages for investments in Mexico and the United States

Among the competitive advantages that he highlighted for binational investments, is the logistics network that includes seaports, international bridges and railway lines on both sides of the border, "expanding to increase cargo capacities and make transfer times more efficient ”.

Business alliances also provide new growth opportunities for border communities, which can benefit small and medium-sized businesses as part of the supply chain, as well as new professionals with better job offers. 

Mexican states with the most nearshoring opportunities

Wood explained that among the Mexican states with the most nearshoring opportunities are Nuevo León, Coahuila, Tamaulipas and Chihuahua because they have a direct connection to the United States.

But also those in the center and south of the country due to new infrastructure projects and placement of international companies. “The state that has captured the most nearshoring investment so far is Nuevo León with 73.2%; In general, all have been fruitful because they have various conditions such as qualified labor, experience, innovation or technology, in their processes, we can also talk about Coahuila with 11% or Chihuahua with 7%, but in Tamaulipas, on the border with Brownsville, there are great opportunities that need to be exploited in order to receive more investment for binational benefit.”

In conclusion, Wood emphasized the political decisions that will be made in 2024 in Mexico and that will define the negotiation routes for new investments and rapprochement with the industrial sector.