56% of Firms Hesitant to Form Education Partnerships

A study by UVM for Business and EY-Parthenon highlights the urgent need for businesses in Mexico to partner with local education institutions to close critical skills gaps. While 44% of firms express openness to such collaborations, 56% remain hesitant. Experts emphasize that these partnerships are vital for leveraging nearshoring opportunities and enhancing the country’s competitiveness in the global economy.

Executives from companies with over 5,000 employees across various sectors—including high-tech electronics, automotive, chemicals, machinery, and retail—stress the need for educational programs tailored to industry requirements. These respondents include both companies already established in Mexico and those looking to enter the market to capitalize on nearshoring opportunities. As this trend develops, the study shared with MBN reveals that employers are particularly seeking skills in data analytics (81%), software development (81%), and quantitative reasoning (74%). However, 50% of these firms report difficulty finding qualified candidates with the necessary expertise in these areas.

“Partnering with educational institutions is not just about filling current skill gaps, it is about future-proofing Mexico’s workforce to meet the evolving demands of nearshoring,” said Ángel Estrada, Partner, EY-Parthenon, in an exclusive statement to MBN. He emphasized that these alliances can help companies reduce training costs, enhance productivity, and improve employee retention.

Nearshoring is poised to significantly bolster Mexico's economy, with the Business Coordinating Council (CCE) projecting an impressive 4% GDP growth over the next decade—nearly double the country's recent average, as reported by MBN.  In early 2024 , Mexico announced 373 new foreign direct investment projects and initiated the development of 50 industrial parks, highlighting the momentum of this economic shift. 

However, the study also revealed that 56% of respondents are not considering educational partnerships, primarily due to executive concerns about whether educational institutions can keep pace with rapid technological advancements and shifting industry requirements. Additionally, the Boston Consulting Group (BCG) highlights that education institutions and employers often operate with differing priorities regarding timelines and governance, leading to blame-shifting over responsibility for existing talent gaps.

To address this challenge, education institutions and employers must form collaborative partnerships based on a transparent and mutually beneficial design process. This collaboration should be informed by data that includes workforce demand projections, comprehensive financial models, and an assessment of capacity constraints for both parties, stresses BCG. Agreeing with the perspective, Estrada emphasizes that leveraging such data can illuminate the essential role of education institutions in the evolving labor landscape, fostering a deeper understanding among companies of the importance of these partnerships.

Furthermore, he underscores the government’s role in motivating companies to form meaningful alliances with educational institutions. He tells MBN that “the government can create an environment of incentives and support, which can be achieved through tax breaks, grants for collaborative projects, and recognition programs.”