Critical Success Factors Behind Nuevo Leon's Nearshoring Success

Recent tariff measures announced by President Donald Trump have reshaped global trade, imposing high duties on key manufacturing and export countries. Mexico, however, has negotiated with its neighbor, reinforcing the relevance of USMCA as a secure platform for production and duty-free exports, according to experts. In this context, Nuevo Leon has emerged as the most attractive destination for foreign investment and advanced manufacturing in Latin America. 

“Nuevo Leon’s strategic location, skilled workforce, and proximity to the United States create the perfect conditions for growth and innovation. These strengths position the state as one of the most dynamic investment hubs in the region,” said Nancy Sánchez, Senior Vice President Americas Manufacturing, The LEGO Group. With a growth of 5.8%, according to INEGI data, Nuevo Leon is recognized as Mexico’s most competitive state and one of North America’s most dynamic industrial hubs. 

The first wave of nearshoring established Nuevo Leon as Mexico’s leading state in attracting foreign investment. Under the current trade scenario, a second, larger wave is expected, with companies worldwide relocating production within the USMCA region to avoid additional costs and maintain competitiveness. Efforts are being strengthened to attract companies operating in countries affected by new tariffs, including China, Vietnam, South Korea, Indonesia, Malaysia, and Switzerland. With the USMCA providing at least 16 years of trade certainty, Nuevo Leon offers a stable and competitive environment for investment relocation.

Made in Nuevo Leon, The Logistics Hub

The Nuevo Leon Ministry of Economy has reinforced the “Made in Nuevo Leon” strategy, which focuses on integrating fully local supply chains in the production of goods for the North American market. This ensures that companies operating in the state comply with USMCA rules of origin and avoid the tariff costs now faced by other countries. “What is made in Nuevo Leon, with Nuevo Leon supply chains, is the best option for companies seeking stability, competitive advantages, and unrestricted access to the North American market,” said Emmanuel Loo, Acting Head, Ministry of Economy.

A key factor behind Nuevo Leon’s continued growth has been its highly skilled labor force. The state continues to strengthen its industrial leadership by investing in talent development through dual education programs and close collaboration between government, academia, and the private sector. “The dual education system is the best way to integrate students directly into the industry,” said Zelina Fernández, General Director, INDEX Nuevo Leon.

Nuevo Leon is advancing STEM and artificial intelligence programs, along with scholarships and training initiatives for women in manufacturing, in partnership with Mexico’s Central Bank (Banxico) and the Women in Manufacturing Committee.  “Through these initiatives, Nuevo Leon is solidifying its position as a national benchmark for talent and industrial training, ensuring long-term competitiveness as new investments continue to arrive in the state,” said Fernández. 

Nuevo Leon’s growth as an international trade hub, along with privileged access to the USMCA, robust local supply chains, and advanced logistics infrastructure, has attracted leading global logistics companies, including Rhenus, Fracht, MSC, DSV, CEVA, and Traxión. 

Trade and Investment Data

In 2024, Nuevo Leon recorded exports totaling US$66.46 billion, a 4.57% increase from the previous year. Leading products were machines and data processing units not specified elsewhere, automobiles primarily designed for passenger transport, and automotive parts and accessories. The United States was the primary destination, accounting for US$58.47 billion, followed by Canada with US$1.39 billion and Brazil with US$605 million. Imports reached US$65.88 billion, up 2.28% year-over-year, led by intermediate iron or non-alloy steel products, automotive parts, and integrated electronic circuits. Most imports originated from the United States (US$24.85 billion), followed by China (US$12.50 billion) and South Korea (US$4.92 billion).

In May 2025, international sales totaled US$5.83 billion, with purchases at US$5.35 billion, resulting in a positive net trade balance of US$480 million. The main export remained machines and data processing units, while automotive parts and accessories dominated imports. The primary trading partners continued to be the United States, Canada, and Brazil for exports, and the United States, China, and South Korea for imports.

Foreign direct investment (FDI) in Nuevo Leon reached US$2.10 billion in 2024, distributed across reinvested earnings, new investments, and intercompany accounts. Since 1999, the state has accumulated US$68.51 billion in FDI, reflecting its long-term attractiveness for international investors. Quarterly export trends showed minor fluctuations, with 4Q24 totaling US$15.20 billion, a slight decrease of 0.6% compared to the previous quarter.

“Nuevo Leon experienced remarkable growth in 2022 and 2023, which challenged our water and energy infrastructure. But we have learned from that. Both the government and the private sector have identified what is missing and are working together to address it. While there is still work to be done, the state is moving in the right direction,” said  Elisabet Zuñiga, Operations Director, Invest Monterrey.

Nuevo Leon, A Reliable Ally Amid USMCA Renegotiations

Irma León, Vice President, Caintra, expressed confidence that Nuevo Leon is well prepared for the upcoming USMCA renegotiation. “Nuevo Leon has done its homework since 1994,” she said. “When the North American Free Trade Agreement (NAFTA) was signed, the state quickly learned to leverage its strong connections between government, academia, and the private sector. This collaboration became the foundation for our industrial momentum and ability to capitalize on trade opportunities. Thanks to that experience, today we are in a unique position; we already know how to navigate and absorb new investments.”

León emphasized that although challenges persist, continued private sector investment has been crucial to maintaining Nuevo Leon’s strong position. “Business leaders have continued to invest and commit resources to new projects, enabling us to transform companies into value-generating enterprises. This ongoing collaboration between the public and private sectors has positioned Nuevo Leon as one of North America’s most reliable allies, strengthening economic ties with both the United States and Canada, and paving the way for sustained growth. And despite everything, it will continue to,” said León.