Slowdown in the North: Is Nearshoring in Mexico Entering a Period of Adjustment?

The nearshoring phenomenon in Mexico has reshaped the country's industrial landscape in recent years, positioning it as a strategic destination for relocating global supply chains.

However, recent reports indicating a slowdown in industrial construction in northern Mexico prompt us to pause and closely examine the current state of demand and the response capacity of the country's key industrial regions.

Industrial Construction Adjusts, But Nearshoring in Mexico Remains Strong

According to recent data from Solili, industrial construction in northern Mexico saw a contraction during the first quarter of 2025. This drop—impacting markets such as Tijuana, Ciudad Juárez, Monterrey, and Saltillo—has been interpreted as a possible adjustment following a surge of new developments driven by nearshoring.

Still, this apparent deceleration should not be mistaken for a loss of competitiveness. On the contrary, it reflects high space absorption and a scarcity of industrial land in strategic submarkets.

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The North: Epicenter of Nearshoring and Industrial Growth in Mexico

The northern region remains the powerhouse of Mexico's industrial development. States such as Nuevo León, Chihuahua, and Coahuila lead in both installed industrial capacity and their contribution to the national manufacturing GDP.

• Nuevo León

With robust infrastructure, rail connectivity, and a highly skilled workforce, Nuevo León—particularly the Escobedo submarket—continues to stand out.

This region is home to next-generation industrial parks with high standards in logistics and sustainability, reinforcing its role as a natural hub for foreign investment. One example of this is Frontier Escobedo:

• Chihuahua

Chihuahua has experienced sustained growth in developed industrial land, with Ciudad Juárez among the most active markets nationwide.

Its proximity to the U.S. and state-level incentives make it a strategic node for advanced manufacturing and electronics.

• Coahuila

Saltillo and Ramos Arizpe have diversified their industrial focus, moving beyond traditional automotive manufacturing into sectors like electromobility and medical devices.

This diversification has maintained high occupancy rates despite a slowdown in new builds.

Expanding Industrial Zones Driven by Mexico's Nearshoring Momentum

While the north leads the way, states such as Guanajuato, Querétaro, and Hidalgo are also capitalizing on nearshoring, with industrial parks like PILBA and PLATAH gaining traction in the automotive, food, and chemical sectors.

These regions combine logistical advantages with regulatory frameworks that actively encourage investment:

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Although the northern region is experiencing a deceleration in construction activity, commercial and logistical data confirms that nearshoring in Mexico is entering a stage of strategic consolidation. Rather than a loss of momentum, this pause reflects high occupancy rates, infrastructure operating at full capacity, and emerging opportunities in other regions.

In this context, the role of industrial developers is more critical than ever: long-term vision, thoughtful land planning, and flexible build-to-suit solutions are essential to meet evolving demand.

At Frontier Industrial, we work to anticipate these changes. With a strong presence in Mexico's most dynamic corridors and an offering focused on quality, connectivity, and scalability, we help drive the development of industrial projects tailored to the new demands of the global market.

🔍 Learn more about how nearshoring is transforming Mexico's industrial landscape