US$13bn in nearshoring investments announced for Mexico so far in 2023 – finance minister

Some US$13bn in investments to set up operations to Mexico have been announced by 20 companies as the nearshoring trend gains momentum, and that figure is actually considerably higher, according to finance minister Rogelio Ramírez de la O (pictured).

“The announcements underestimate the potential because many plans haven’t been unannounced and are underway and because the preliminary announcements don't include all the potential considered by companies,” Ramírez said on Tuesday at a banking event in Mexico City. 

Of the US$13bn outlined, 54% will go to the automotive sector, he added, highlighting investments confirmed this year by US electric vehicle (EV) manufacturer Tesla in Nuevo León state, where it will build a US$5bn gigafactory, and the BMW Group, which stated in February that it would spend 800mn euros to start producing EVs at its San Luis Potosí plant. 

President Andrés Manuel López Obrador followed up these comments on Wednesday by saying that several investment announcements were coming up this year, although he did not mention any further details. 

Meanwhile, economy minister Raquel Buenrostro told reporters in late May that “There are very good expectations for Mexico … There are investment announcements for US$48bn so far this year and we have already registered US$18bn.”

Although the government is seeking to attract foreign investors to the Tehuantepec isthmus region of southern Mexico, where tenders to build 10 industrial parks on the route of a transoceanic railroad are expected to be issued this year, most companies prefer Mexico's northern states due to their proximity to the US. 

“The demand for industrial spaces in the north of the country is at record levels, with an occupancy rate greater than 97% and with an increase in the area of industrial spaces under construction that is higher than 100% in cities such as Guadalajara and Ciudad Juárez,” Ramírez said. 

“This has translated into increases in employment and wage improvements in construction,” he added.