Mexico Must Develop Infrastructure for Nearshoring: Newmark

Mexico grapples with a need to create conducive conditions for expanding its industrial footprint if the country wants to fully capitalize on nearshoring, noted Sergio Pérez, Director of Executive Management, Newmark. Pérez emphasized the scarcity of available industrial spaces in Mexico, constituting only 1.5% of the entire inventory. He said this historic low poses a significant challenge for developers looking to capitalize on the nearshoring phenomenon.

While the country possesses ample land, Pérez pinpointed limited infrastructure, particularly regarding electricity transmission. He cautioned that developers entering Mexico must proceed with care, seeking proper guidance to avoid complications, such as delays in essential services and inadequate construction quality.  "If (a company) arrives in too much of a hurry and with poor advice, there is a risk of being located in complicated areas, where electricity may take six months to arrive or may not arrive at all, or where the construction is of poor quality,” he noted.

According to Pérez, Mexico is well prepared to position itself as a leading manufacturing sector, offering diverse production capabilities and a robust supply chain.

Pérez noted that the country’s central region, particularly Mexico City and its metropolitan area, poses significant advantages for industrial development. He highlighted strengths in high-engineering centers, patent development centers, back-office operations, and e-commerce, positioning the area as a valuable hub for various industries, including photovoltaics and the development of spaces near the country’s main ports.