The Boom of Nearshoring. 479 Foreign and Foreign Capital Companies Register in Mexico in 2023

So far this year, 463 Mexican companies with foreign capital and 16 foreign enterprises have registered in the Foreign Investment National Registry (RNIE). This registry serves the purpose of tracking and accounting for foreign investment flows into Mexico. The enrollment of these firms reflects the ongoing international interest in the Mexican market and confidence in the business opportunities the country offers. This comes in a context where, at least since 2021, "made in Mexico for the world" has become synonymous with nearshoring.

Over the past three years, nearshoring has played a pivotal role in expanding and establishing companies on Mexican soil, driving economic development and the commercial real estate market. As Foreign Direct Investment (FDI) has increased, the industrial and corporate space has expanded by 14%. This expansion encompasses over 11.5 million square meters added between the second quarter of 2021 and 2023, according to data from SiiLA.

The demand for industrial spaces in Mexico has been so high that the average vacancy rate for industrial warehouses nationwide is at historic lows, falling below 1.7%. This signifies that companies looking to establish or expand their presence in Mexico face a highly competitive market and substantial challenges in finding suitable spaces. However, the growing demand and the steady influx of foreign investment underscore Mexico's firm position in the global economic landscape and its allure as a destination for manufacturing and investment.

In fact, the productivity of both foreign and domestically-owned companies with foreign investment has become an essential driver of the Mexican economy. According to data from the Mexican Economy Secretariat, only in the first quarter of this year, 1,387 companies with foreign capital participation and 863 trust contracts generated nearly $18.636 in FDI.

Foreign Companies in Mexico

In Mexico, foreigners can establish Mexican companies or participate in already-established domestic firms. In doing so, they aim to seize tax benefits, tariff advantages, and those related to international trade agreements, such as the USMCA, while also accessing local markets, thus diversifying their investment risks.
Most companies (47%) registered in the RNIE in 2023 have North American origins or have North American capital, primarily from the United States. In second place are European companies (21%), followed by Latin American and Caribbean (20%), as well as Asian (11%). The remaining 1% comes from Africa and Oceania.

It's worth noting that 87% of the companies registered this year are engaged in providing business products and services (33%), consumer goods (24%), or represent the FIRE (18%) and the manufacturing (12%) sectors.

Many of these businesses (57%) are located in Mexico's Central region, primarily in the Mexico City Metropolitan Area. Following the central region, the Northern (17%), Bajio (13%), and Southern (13%) regions have been notable choices for establishing operations.

The arrival and expansion of companies and their contributions to investments are not the only benefits of nearshoring at a national level. The growing presence of foreign and foreign capital companies in Mexico has fostered the transfer of knowledge and technology, promoting training and skills development among the Mexican workforce. This, in turn, has increased Mexico's competitiveness in the global economy and positioned the country as an attractive long-term business destination.

For more information on this and other topics related to Mexico's economy and commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.