Home Depot Announces US$1.3 Billion Investment in Mexico

During a morning press conference, President Claudia Sheinbaum announced that Home Depot will invest over US$1.3 billion in Mexico between 2025 and 2030. This expansion is set to generate 2,000 direct jobs and over 10,000 indirect jobs.

During the announcement, Jimena Escobedo, Head of the Productive Development Unit, Ministry of Economy, highlighted Home Depot’s longstanding presence in Mexico: “Home Depot has been in all 32 states since 2000, generating more than 18,000 jobs. With this new investment, it aims to reach 100% national sourcing by 2028, reinforcing its commitment to Mexico’s economic growth.”

José Antonio Rodríguez, President and General Director, Home Depot Mexico, emphasizes the company’s confidence in the country’s market and workforce: “We arrived in Mexico in 2000 with the vision of supporting families in construction, remodeling, and home improvement. We started with just four stores and 500 employees. Today, we operate 140 stores in more than 100 cities with 18,000 associates, and we are ready to take the next step.”

Rodríguez outlines key aspects of the investment plan:

• Opening an average of five new stores per year to reach 165 locations in five years with 20,000 associates.

• Strengthening e-commerce capabilities.

• Expanding logistical infrastructure with new specialized distribution hubs across the country.

• Enhancing sustainability initiatives, with nearly 50% of stores already powered by renewable energy and a growing catalog of over 2,000 eco-friendly products.

The investment will also allow Home Depot to strengthen its supply chain with local products. “Today, 85% of our products come from Mexican suppliers. We aim to further develop and integrate local suppliers, not just for our Mexico operations but also to provide access to our stores in the United States and Canada,” says Rodríguez. 

President Sheinbaum says that Home Depot’s expansion supports Plan México, aimed at increasing regional investment and well-paying jobs. “Home Depot is a great example of a company committed to Mexico. By increasing local sourcing and expanding operations, it is not just creating jobs but also boosting the country’s overall economic development,” states Sheinbaum.

Sheinbaum emphasizes that increasing the local suppliers will generate direct jobs and also stimulate indirect employment by strengthening domestic production and supply chains. She also highlights the collaborative efforts between the Ministry of Economy and a council of business leaders working to shape Plan México: “A key aspect of Plan México is the concept of Well-being Poles, which seeks to enhance investment conditions by directly engaging with companies to understand their needs.”

Security and infrastructure were also discussed as crucial factors for investment. “Security remains a challenge, but we are encouraged by the government’s actions. Improved security will bring economic and social stability,” says Rodríguez. He also emphasizes the need for efficient distribution networks: “Expanding transportation and logistics infrastructure is essential for our growth and for ensuring that products reach every home in Mexico.”

Home Depot is also expanding financial accessibility through partnerships with major financial institutions. “We have a significant segment of professional clients and general contractors, offering 30-day loans. Additionally, we form alliances with key financial institutions, including Banamex, and provide an in-house credit card accessible to all customers. We are continually exploring new segments where credit is essential, offering over 15 payment methods to cater to diverse needs," says Rodríguez.

Regarding foreign imports, Rodríguez adds: “Competing against products imported from China, which are sold directly to consumers, has led to the implementation of certain tariffs to ensure parity in import pricing. This is beneficial because some of these products previously entered the market at non-viable prices. We support fair competition and are working towards that. Currently, 15% of our imports come from abroad, with half of that originating in Asia.”

Rodríguez also discussed the viability of using rail networks for freight transport, which has been proposed by the current administration. “Rail is one of the most competitive channels for moving goods. Some of our distribution centers are located near rail lines, and we strongly support this mode of transportation as it is one of the most efficient ways to distribute the heavy materials we offer in our stores,” Rodríguez says.

On March 4, 2024, Home Depot announced the investment of MX$2.86 billion to fuel its growth in Mexico throughout 2024. This investment aimed to push the company's total investment in Mexico beyond MX$50 billion since its establishment in the country in 2001. This expansion enabled Home Depot to enhance its in-store experience and introduce self-checkout counters to streamline operations, MBN reported.