Nearshoring in Mexico Expands U.S. Southern-border Warehousing Demand
As a result of the current shifts in the global supply chain, many U.S. and international companies have been moving production to Mexico in search of closer manufacturing centers, raising demand for warehousing locations.
The increasing nearshoring movement has fostered demand for logistics capacity, which has led several companies to strengthen their position in U.S. and Mexico border cities. This facilitates the distribution of their products, mitigates risk by shortening response times, and avoids possible shortages in supplies. Also, in some cases, products manufactured in Mexico require additional advanced processes for final assembly in the U.S.
In the first nine months of 2022, foreign direct investment in Mexico reached $32.1 billion, the highest level since 2013. Leaders from the United States, Mexico, and Canada made an agreement to reinforce regional supply chains at the North American Leaders’ Summit in January 2023.
In Mexico, nearshoring-expansion operations accounted for nearly 50% of the overall industrial space demand in 2022, especially in Monterrey, Ciudad Juarez, and Tijuana. At the same time, industrial space in southern U.S. cities such as San Diego, Nogales, El Paso, and Laredo ramped up its capacity.
In 2021, new industrial supply in the U.S. related to Mexico was exceptionally significant, with logistics space increasing by 6% in El Paso and more than 4% in Laredo compared to 2020. And even though it slowed last year due to higher interest rates and increasing costs, supply has still been on the rise.
Capin Vyborny Customs Brokerage & Logistics has over 30 years of experience serving global manufacturers operating in Mexico, and is committed to supporting nearshoring efforts by expanding its footprint along the U.S.-Mexico border, with offices and warehousing capabilities in San Diego, Nogales, Columbus, El Paso, Presidio, Laredo, and Brownsville.
Capin Vyborny provides specialized help and relationships for cross U.S.-Mexico trade through any U.S. Customs port of entry. For any questions or inquires please contact us at 520-281-2066 or email@example.com.
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