Japan to increase nearshoring to Mexico investments by 66% in 202430/01/2024
Industrial plants, factories, and production lines are key components of the infrastructure in which Japanese enterprises plan to invest within a nearshoring to Mexico schema. According to the Japanese ambassador in Mexico, Moriteru Fukushima, these companies are expected to boost their resources by 66% compared to last year, considering nearshoring a key factor.
Japanese companies operating in Mexico expect to invest US $4,000 million this year, considering that the Asian country has been historically the 4th most crucial investor in Mexico, behind the United States of America, Canada, and Spain. For the past year, the Asian country had 1,300 enterprises with activities in Mexico, with Guanajuato replacing Monterrey as the second most relevant state, attracting the Japanese population behind Mexico City.
The effects of nearshoring as a growing trend for investments
Fukushima considers nearshoring a crucial factor for Mexico to receive significant foreign investment during 2024. He mentioned that the total investment expectations are close to US $40,000 million, with the international context boosting the Latin American nation and India as the most relevant countries for global enterprises looking to relocate their industrial activities and production operations.
According to Mexico Business News, the Japan External Trade Organization (JETRO) informed that different Japanese enterprises explore opportunities for establishing infrastructure buildings and supporting the light manufacturing industries in Mexico by providing technological solutions.
As the ambassador, Fukushima affirms he has taken the message to Japanese companies for investing in Mexico as a country expected to keep growing in the following years. “Mexico is strong, and I want the people in Tokyo to understand it”, he explained.
The automotive industry boosted a growing scenario for Japanese investments in nearshoring to Mexico
The start of activities at the Honda and Mazda assembly plants in 2014 played a crucial role in catalyzing Japanese investment a few years ago, and this trend continues.
The automotive industry activities in Mexican states such as Nuevo Leon, Aguascalientes, and Guanajuato boosted Japanese investment since 2005 when both governments signed an Economic Association Agreement.
It established nearly 100 Japanese enterprises in Mexico, a trend that continued for a few years. Japan has become Mexico’s second-largest investor in the automotive industry, with Tier 1 and Tier 2 providers involved in Bajio’s automotive cluster growth in Guanajuato.
The electric devices manufacturing and technology industries are also activities in which Asian enterprises have invested in the country to take advantage of nearshoring.
In the context of nearshoring to Mexico, Frontier Industrial offers industrial land for sale and buildings for rent in the country’s most important areas, as well as the development of Build-to-Suit projects. If your enterprise wants to relocate activities in Mexico, please contact us to discuss and develop your project.