Top 10 Mexican States Leading Nearshoring Opportunities

Nuevo León, Aguascalientes, Coahuila, Colima, and Jalisco are the top five Mexican states offering favorable conditions to attract nearshoring investments, according to the Mexican Institute for Competitiveness (IMCO). These states are followed by Tamaulipas, Morelos, Yucatán, Sinaloa and Baja California Sur, completing the top ten list.

In its report titled "Nearshoring: Priorities for Regional Development," IMCO identifies which states are most and least prepared to leverage growth opportunities from the relocation of production chains. The report also highlights the structural challenges each state faces.

IMCO's analysis considers 21 variables across four key areas: labor market, housing and essential services, infrastructure, and the rule of law. In its second edition, the report introduced new variables such as housing production, water infrastructure, and English proficiency as a skill for human capital.

The report's goal is to outline a tailored action plan for each state, addressing critical priorities and creating the necessary conditions to boost regional development in Mexico.

According to IMCO, these states performed well in housing, essential services, and educational institutions. However, they also show room for improvement in structural aspects like crime rates, English proficiency, and water infrastructure availability for industry.

Experts note that Mexico's investment hubs have developed in line with critical industries, particularly in the country's central, northern, Bajío, and western regions. These sectors include automotive, electrical-electronics, technology, and aerospace.

The nearshoring trend has placed Mexico in the spotlight for companies seeking investment opportunities, thanks to its strategic geographic location next to one of the world's largest markets and its network of 14 trade agreements with 50 countries. In 2023, five key areas—Mexico City, Sonora, Nuevo León, Jalisco and Chihuahua—concentrated foreign direct investment. These five states accounted for 57% of the $36.058 billion recorded that year, with 13% attributed to new investments.

As of June this year, the Ministry of Economy reported that the private sector made 143 public announcements, with an expected foreign investment of $45.464 billion, in addition to the $110.744 billion reported during 2023.

The leading states attracting investment are Querétaro (14%), State of Mexico (10%), Nuevo León (9%), Puebla (6%), and Coahuila (5%). Notable public announcements between January and July of this year include:

• Engie's $2 billion gas pipeline construction.
• Walmart's $1.862 billion retail expansion.
• Volkswagen's $1.087 billion automobile manufacturing investment.
  

As nearshoring continues to reshape the global economic landscape, Mexico stands at the forefront, offering a unique blend of strategic advantages and competitive opportunities. 

The top ten states identified by IMCO are not just leading the charge—they are setting the standard for regional development, innovation, and investment. As these states evolve and address their structural challenges, they are poised to become even more attractive destinations for global enterprises looking to capitalize on Mexico's proximity, talent, and growing infrastructure. The future of nearshoring in Mexico is not just promising—it's transformative.

About IMCO: 

The Mexican Institute for Competitiveness (IMCO) is a renowned think tank dedicated to advancing Mexico's economic and social development through research, analysis, and public policy recommendations. IMCO focuses on fostering competitiveness by evaluating the performance of states and industries, identifying structural challenges, and proposing actionable solutions to drive sustainable growth. The institute's comprehensive reports, such as the one on nearshoring, provide invaluable insights that guide both policymakers and private sector stakeholders in making informed decisions that enhance Mexico's position in the global economy.