Is Nearshoring to Mexico on the Rise? Foreign Companies Already Represent 75% of Industrial Absorptions

As 2024 draws to a close, Mexico is emerging as a top choice for global companies aiming to optimize operations close to the U.S. market. With 2025 promising to strengthen this trend, the country has leveraged its strategic geographical proximity, expanding infrastructure, and competitive costs to attract strategic investments that are reshaping its industry and its role in the North American economy.

At the end of 2021, amid a global economy shaken by supply chain disruptions, companies like Kohler, Kawasaki, and Amazon expanded their footprint in Mexico, reinforcing a phenomenon that has transformed the country's industrial landscape in just a few years: nearshoring. Since then, according to SiiLA data, foreign demand for industrial space in Mexico has grown rapidly, with foreign companies accounting for 65% of industrial absorption in 2021, a figure that has now surpassed 75% by 2024.

How far-reaching is the impact of this shift in foreign investment in Mexico? In just three years, foreign companies have absorbed an average of 4.5 million square meters of industrial space annually. For perspective, this is equivalent to filling the construction area of Mexico City's Azteca Stadium nearly 71 times yearly.

Within this context, it's important to note that northern Mexico and the Bajío have emerged as the top choices for incoming and expanding foreign companies.

Between 2021 and 2024, nearly 80% of industrial space absorption in northern Mexico was driven by foreign companies, especially in border cities that facilitate transportation to the U.S., such as Reynosa and Saltillo, where over 90% of the space was absorbed by foreign firms.

A bit further south, in the Bajío region, key markets such as Querétaro, Guanajuato, San Luis Potosí, and Aguascalientes stand out, with over 75% of industrial space absorption driven by international investments, primarily focused on advanced manufacturing. Although farther from the border, these regions have developed robust logistics and production infrastructures, making them attractive hubs for the automotive and technology sectors.

However, it's crucial to note that this trend is not uniform across the country. In central Mexico, particularly the Mexico Valley, foreign absorption rates hover around 50%. While this is lower than the northern and Bajío regions, the area continually attracts foreign investment, especially from companies looking to establish distribution centers and leverage direct access to the capital and its large consumer base.