Reconfiguring the Future of Work Through Nearshoring

Nearshoring is solidifying as a key strategy in the global economic landscape, and Mexico presents itself as a country with enormous opportunities to capitalize on this trend. During the first nine months of 2023, sectors related to business relocation in Mexico experienced a 47% increase in foreign direct investment compared to the same period the previous year, surpassing other economic sectors.

Mexico has several strategic advantages that position it as an ideal destination for nearshoring. Its proximity to the United States, the world's largest market, significantly reduces transportation costs and times for companies. This not only optimizes the supply chain but also minimizes logistical risks associated with long distances.

Moreover, the skilled and competitive workforce is another attractive factor. Mexico boasts a young and well-trained labor force, especially in sectors such as manufacturing and technology. Educational and technical training programs are aligned with industry needs, ensuring a steady flow of talent.

Flexible Workspaces: A Strategic Ally

Flexible workspaces have emerged as an effective solution for companies looking to quickly adapt to new market dynamics, especially in the context of nearshoring. Compared to traditional offices, these spaces offer a more economical and adaptable option.

Commercial properties are the least liquid assets of a company, and transitioning to a more flexible economic model requires innovative competitive strategies. Flexible workspaces allow companies to scale their operations according to current needs, optimizing costs and resources, and achieving optimal relocation.

The flexibility of these spaces enables companies to quickly respond to market changes and operational needs. Additionally, the study conducted by WeWork in collaboration with PageGroup, Challenges and Perspectives of Work, reveals trends such as the rise of digital nomads and the development of leaders in hybrid schemes, where 79% of respondents claim to be more productive. These characteristics are important for attracting the best talent in nearshoring.

Furthermore, 60% of Mexicans have readjusted their priorities, valuing well-being and quality of life more. This trend toward a work-life balance is reflected in the growing demand for workspaces that offer flexibility and additional services that enhance the work experience, such as rest areas, gyms, and access to advanced technologies. Flexible workspaces not only provide an efficient work environment but also foster collaboration and innovation, essential elements for success in the modern economy.

Digitalization of SMEs and the Role of AI

The digitalization of processes is crucial for Mexican SMEs to benefit from nearshoring. Investing in technology and adopting digital practices improve operational efficiency and enable companies to compete globally. Although national companies increased their digital development by 7% in 2022, they still face significant obstacles. The integration of advanced technologies like artificial intelligence can transform how SMEs operate, providing tools for data analysis, process automation, and improved decision-making.

AI is an emerging trend with great potential for SMEs. According to our study, 48% of respondents in Mexico already use AI in their daily lives, while 28% do not due to lack of knowledge, and 24% do not consider it necessary. AI can transform decision-making through autonomous data processing, redefining business perspectives. SMEs that adopt these technologies will improve their competitiveness, optimize their operations, and offer higher quality products and services.

Moreover, digitalization opens new opportunities for SMEs in terms of market reach and efficiency. Digital platforms allow small and medium-sized enterprises to access international markets, reducing entry barriers and expanding their reach. Adopting digital tools also facilitates business management, from inventory handling to customer service, improving efficiency and reducing operating costs. In an increasingly digital world, the ability to adapt and evolve technologically is vital for long-term success.

Challenges and Opportunities in Infrastructure and Public Policies

The growing demand for industrial spaces, which increased by 42% in 2022, according to the Ministry of Finance and Public Credit, is also a key aspect. Mexico has sufficient industrial parks, but choosing the most suitable one depends on the specific needs of each company. It is crucial that these spaces are equipped with the necessary infrastructure, such as high-speed connections, efficient logistics services, and transportation facilities, to maximize their appeal to companies considering relocation.

Additionally, the tax incentives offered by the government to attract companies through nearshoring can generate significant investments. It is essential to streamline processes, as currently, it can take more than eight months for a company to establish itself in the country. More efficient processes and tailored solutions are needed to maximize these benefits. Public policies should focus on reducing bureaucracy, simplifying procedures, and offering a favorable regulatory environment for investment. Coordination between the government and the private sector is crucial to create an ecosystem that facilitates the establishment and growth of companies.

Preparing for the Future

Nearshoring will not only bring financial benefits to Mexico but also significant human development. Collaboration between the private sector, the government, and large companies is essential to accelerate adaptation capacity and turn SMEs into key suppliers for original equipment manufacturers.

Training and workforce development will be another crucial aspect. Investing in education and training programs that prepare workers for the demands of a modern economy is essential to ensure that Mexico can compete globally.

At WeWork, we are committed to being a catalyst for positive change in the world of work. We believe in creating inspiring spaces where people can come together to do their best work, guiding each of our actions toward a more flexible and efficient future.

Our mission is to support companies in their growth and adaptation, providing the tools and environment necessary to thrive in a constantly evolving world.

About WeWork

WeWork is the global leader in flexible spaces, providing companies of all sizes with the space, community, and services they need to manage and grow their business. With over 800 locations in 151 cities and 38 countries worldwide, WeWork offers flexible space solutions to its 490,000 members globally.

About WeWork Mexico

As a pioneer and leader in flexible workspace, WeWork significantly contributes to transforming the work environment in the country. WeWork has been present in Mexico since 2016 and, as of 2021, is part of WeWork Latam, an independently operated entity of WeWork Global. The company has 24 buildings distributed in three strategic cities: 14 in Mexico City, six in Monterrey, and four in Guadalajara, with more than 31,500 active members.