Mexico Needs Regional Vertical Integration: Prodensa

Q: What challenges have you identified in the integration of Mexican companies in international supply chains?

A: Mexico is maintaining sustained growth in its exports to the United States, even within a context of high uncertainty. In sectors without tariffs — that is, products that comply with the USMCA and are not subject to executive orders such as Section 232 — Mexico and the United States continue to strengthen as an industrial co-production ecosystem. This is reflected in the parallel growth of exports and imports. Sectors such as electronics, capital goods, electrical equipment, and the agribusiness industry will continue to experience considerable growth.

We are witnessing a restructuring of global ecosystems toward regional models. Today, the value of production within the USMCA region, while complying with rules of origin, is significantly higher than in the past. Previously, the cost of importing to the US outside of the treaty was between 2.5% and 3.5% (WTO tariffs); today, that differential can fluctuate between 10% and 25%. Therefore, producing under the USMCA framework is the most competitive option for both Mexico and the United States. By shifting production from Asia to Mexico, the US economy benefits directly, because for every dollar produced in our country, the integration of inputs and components originating from the United States increases significantly.

Q: How can Mexico continue to add value to global supply chains?

A: Mexico generates a large amount of added value. But much remains to be done in creating value chains that, due to globalization, did not originally develop in our region. Many of today’s products did not exist when the first NAFTA was signed in 1994, such as modern laptops or flat screens. Those value chains, along with the battery sector, developed predominantly in other regions — particularly in China, which achieved unprecedented total vertical integration over the last 25 years.

For Mexico to increase its added value and "plant roots," we must take the lead in the regionalization of critical sectors. These include electronics, pharmaceuticals, and electromobility and energy components. To generate more added value, Mexico needs regional vertical integration, which includes everything from mining to specialized steel and high-tech textiles.

Q: What are your expectations for nearshoring considering the uncertainty of global conflicts? 

A: We are living through a change of era: the transition toward regionalization. Beyond geopolitics, regionalization offers superior resilience in value chains and optimizes inventories. Having a supplier nearby allows for rapid response and minimizes storage costs; it is no longer necessary to saturate warehouses when the supply is immediate.

Recent events have demonstrated the fragility of the previous model: from logistical incidents in the Red Sea or the blockage of the Suez Canal to the COVID-19 crisis. At that time, we saw how batches of cars that were 99.9% finished remained stranded due to the lack of a single micro-component coming from a Chinese factory that was closed for health reasons. Furthermore, consumer behavior has changed. Sophistication demands immediacy: clients want to receive their product on the same day of purchase. The only way to meet that expectation is by shortening distances; in logistics, distance matters. If we add the geopolitical factor to this, the trend is irreversible.

The integration of Mexico, the United States, and Canada will strengthen once the uncertainty regarding the USMCA settles. For Mexico, the challenge is not demand, but our capacity for absorption. The US buyer prefers to purchase products in their own country; if they cannot, they look to Mexico, and only if we lack the capacity will they look to the rest of the world. Success will depend on the speed with which we develop electrical and logistical infrastructure and our agility in granting operating permits.

Technology and value chains are evolving at an unprecedented speed, so we must demand greater institutional agility from governments. The clearest example is AI, which is advancing  exponentially faster than the capacity to generate public policies to regulate or leverage it. To avoid falling behind, we need authorities who are more technically sophisticated. The challenge for governments is to design dynamic public policies that understand and adapt in real-time to changes in value chains, industrial policy, and technological transformation. A country's competitiveness no longer depends solely on its labor force or location, but on the ability of its regulatory framework to respond at the speed of the market.

Q: What challenges need to be addressed for Mexico to continue expanding its manufacturing capabilities?

A: The most complex question is when the tariff dispute between Mexico and the United States will end. The underlying problem is that foreign trade has stopped operating in an independent "silo"; it is now intrinsically linked to countries' domestic politics. 

The second critical question is: "How fast can I start an operation in Mexico?" The greatest opportunity lies there. Mexico must become a "speed haven" for starting operations or expanding existing businesses. Unfortunately, the answer is not always simple when factors such as electrical grid connection times come into play. The sales pitch can no longer be based solely on geographic location; it must now focus on management capability and how we help companies navigate these infrastructure limitations to ensure their arrival in the country is as agile as possible.

Q: How does Prodensa ensure that Mexican regulations do not stifle the agility demanded by new players, especially considering that production cycles are becoming increasingly shorter?

A: We achieve this by following two fundamental pillars. The first is operational technical specialization. We are experts in the critical path to starting a company: from obtaining permits and defining talent profiles to the correct management of government procedures. Often, the delay is not just due to government reaction, but due to poor initial management. Our job is to deeply understand the existing regulatory framework to operate with agility within it.

The second pillar is maintaining an open and transparent dialogue with the authorities from the beginning. By clearly explaining what needs to be done, who the companies are, and what value they bring to the country, we manage to finalize operations on time.

We also perform an exhaustive analysis of location, especially industrial parks, to identify which ones have real electrical capacity, logistical access, and talent availability. 

Q: Given that the USMCA negotiations will take time to settle and that many CEOs already accept tariffs as a permanent reality, how do you manage the expectations of new clients so they learn to operate in this environment?

A: The first step is to precisely identify which sectors are actually affected. About 30% of exports to the United States pay some form of tariff due to non-compliance with USMCA rules or because they are subject to Section 232. For these companies, our strategy consists of helping them increase their presence in the region and develop local suppliers to ensure treaty compliance and minimize the tariff impact.

On the other hand, companies are making decisions based on the long term and on a factor where Mexico is the ideal complement to the United States: talent. There is a critical demographic and vocational difference; while only 3.7% of the workforce in the United States works in a factory, in cities like Monterrey that figure is 23%, and in Chihuahua, it reaches 80% of formal registrations.

In Mexico, we have a population that is not only capable but also willing to work in manufacturing. For many Mexicans, export manufacturing represents the greatest opportunity for social mobility in the country; it is a success story that is often not told enough.

Q: What is the most recurring cultural clash Asian companies face when arriving in Mexico, and how does this affect the integration of local talent?

A: Mexico has spent 40 years integrating with the United States and Canada. At the US-Mexico Foundation, we promote the concept of the North American Way, and manufacturing is its best example. In an automotive ecosystem, the Mexican, US, and Canadian technicians speak the same technical language and share the same cultural expectations regarding quality, industrial safety, and labor rights.

With Asia, we are only just beginning that process of harmonization. Although Japanese companies have already been highly successful here after decades of presence, we cannot generalize about the entire Asian region. The relationship with Chinese companies, for example, is in a stage of mutual understanding regarding leadership styles, motivation, and quality standards.

Prodensa’s stance  is clear: the company that arrives is the one that must adapt to the Mexican culture, not the other way around. If one thing has been proven, it is that Mexican labor is world-class. As long as the interaction is respectful of local rights and culture, the integration is successful. 

Q: What is needed to expand the generation of development and innovation in Mexico?

A: We must protect the existing ecosystem. An engineering center functions optimally when it is linked to manufacturing plants within the same territory; this allows what is designed in the lab to be validated directly on the production line. 

Second, we must equip Mexican talent with adaptive skills. Rather than teaching a specific digital tool, the challenge is to foster a digital mindset and the ability to utilize AI. We are in a boom where platforms and language models change every few months; therefore, the priority is not mastering a single software, but the agility to learn and apply new technologies as they emerge. 

Q: Prodensa turned 40 in 2025. What would you say has been the most difficult lesson to learn during this period of expansion?

A: At Prodensa, we went from being a micro-enterprise founded at the height of the trade opening to becoming the most important soft-landing and operational advisory firm in Mexico. This success is based on two fundamental lessons that we have integrated into our DNA.

First, the ability to anticipate change. Prodensa has committed to an organizational culture that embraces adaptability and innovation with a positive attitude. Second, we are a company obsessed with execution. Our philosophy is simple: no matter how many reasons point to “no,” we focus on finding the one path that leads to “yes.”
 

Q: How will Prodensa continue to differentiate itself to continue advancing its position in Mexico?

A: Our strategy focuses on two key fronts. First, we are betting on flexibility and proximity to our clients. In such a volatile global environment, the differential value lies in human and technical support to ensure that companies become increasingly productive within national territory.

Second, we are investing decisively in digitalization and AI. We are convinced that to empower our clients, we must be the first major users of these technologies, optimizing processes and raising competitiveness standards. Our confidence in Mexico is absolute; therefore, we continue to grow and invest in the country under a vision of strategic optimism.