During the first quarter of 2024, Mexico witnessed a significant increase in investment activity. This trend was attributed to a growing number of companies seeking to establish manufacturing and supply chain hubs south of the U.S.-Mexico border.
According to Mexican officials, investment commitments for the period January-mid-March 2024 surpassed $31 billion. This figure represented a substantial gain compared to the total investment received in 2023, which amounted to $36 billion.
Raquel Buenrostro, Mexico’s Secretary of Economy, addressed the 41st general assembly of the country’s influential Business Coordinating Council (CCE) on March 19, 2024. During her speech, she highlighted Mexico’s emergence as a leading global destination for investment.
Buenrostro emphasized the continued significance of nearshoring in attracting foreign capital. “[Nearshoring] is here to stay and that is not going away,” she stated. “We have to see how we integrate and how we take advantage of these opportunities at this moment.”
“Nearshoring is a persistent trend,” she stated, “and we must capitalize on these current opportunities by effectively integrating these companies into our economy.”
Despite earlier predictions of a potential slowdown in 2024 due to concurrent election cycles in Mexico and the United States, investment announcements remained robust. Buenrostro noted that between January 1st and March 15th, 2024, a total of 73 investment commitments were made by both domestic and foreign companies.
Mexico’s Ministry of Economy revealed prominent investments from various sectors, including:
E-commerce: Mercado Libre ($2.4 billion)
Retail: Walmart ($2.1 billion)
Automotive: Yokohama Tire Corp. ($380 million), IKD ($178 million), Minth Group ($173 million)
Pharmaceuticals: Carnot Laboratories ($142 million)
Other companies announcing investments in Mexico during this period included Amazon, DHL Supply Chain, Volkswagen, Maersk, FEMSA, Ternium, Solarever, ELAM-FAW, and Unison Shanghai.
An analysis by the Ministry of Economy indicated that the majority of investments originated from the United States (57%), followed by Germany (17%), Argentina (14%), and China (6%).
The manufacturing sector attracted the largest share of investments (54%) in 2024 so far. The remaining investments were distributed across media (16%), commerce (15%), and transportation (14%).
In terms of geographical distribution, the central Mexican state of Queretaro received the highest investment concentration (18%). The states of Mexico (14%) and Nuevo Leon (10%) in the north also captured significant investment activity.
While the full realization of these investments might take two to four years, Mexican authorities anticipate the creation of over 39,100 new jobs by 2028.