Jalisco Boosts Foreign Investment, Advances Energy Planning

Summary: Jalisco is consolidating its role as a nearshoring-driven manufacturing hub in Mexico, with FDI reaching US$1.26 billion in 2025, led by new investments and reinvestment from companies tied to US, German, and Japanese supply chains. The trend reflects sustained business confidence and deeper integration into global value chains, particularly in advanced manufacturing and export-oriented industries. To support continued industrial expansion, state authorities are advancing energy planning and renewable capacity, addressing infrastructure constraints critical to maintaining competitiveness and long-term investment flows.

Jalisco is strengthening its position as a leading destination for foreign investment and industrial development, supported by rising capital inflows and a forward-looking strategy to expand energy capacity and sustainability. The state reported US$1.26 billion in foreign direct investment (FDI) in 2025, marking a 14.2% annual increase and outperforming the national average of 10.8%. The results underscore Jalisco’s growing competitiveness amid global economic uncertainty and shifting supply chains.

As global companies continue to reconfigure supply chains, Jalisco has emerged as a key beneficiary of nearshoring trends. New investments reached US$382 million in 2025, a 51% increase compared with the previous year, placing the state fourth nationwide in this category. The surge reflects Jalisco’s ability to attract fresh industrial projects and capitalize on demand for regionalized production.

Manufacturing remained the primary driver of FDI, totaling US$719.6 million, up 15.8% year over year. The sector’s growth highlights the state’s integration into global value chains, particularly in advanced manufacturing and export-oriented industries.

Beyond new capital inflows, reinvestment trends point to sustained confidence among companies already operating in the state. Reinvestment of profits totaled US$849.7 million, a 45% increase from 2024, indicating that established firms are expanding operations and strengthening production capacity. This trend reinforces Jalisco’s reputation as a stable and attractive environment for long-term industrial investment.

The main sources of foreign investment included the United States, Germany and Japan, reflecting strong ties with key global manufacturing hubs.

Institutional Strategy Drives Investment Attraction

To sustain momentum, state authorities are implementing targeted policies to attract and support productive investment. Through the Ministry of Economic Development (SEDECO), officials are focusing on investment facilitation, strategic partnerships and tailored support services for incoming companies. These initiatives aim to strengthen the industrial ecosystem and streamline business operations. Cindy Blanco, Head, SEDECO, said the state met its 2025 targets despite global economic pressures, reinforcing Jalisco’s position as a dynamic and competitive investment hub.

As investment accelerates, energy availability has become a central pillar of Jalisco’s long-term strategy and investment agenda. Authorities and industry leaders have agreed to conduct a technical study to assess electricity demand, infrastructure capacity and the feasibility of new power generation projects. The initiative is led by the Jalisco Energy Agency and the Industrial Chambers’ Council (CCIJ), reported MBN. 

The study, supported by an initial public subsidy of MX$2.1 million, will evaluate electricity supply and demand, transmission infrastructure and natural gas availability to determine the system’s capacity to sustain economic growth.

To ensure alignment between industrial expansion and energy supply, the study will incorporate forward-looking demand projections. Analysts will examine historical consumption patterns and forecast electricity demand over five, 10, and 15-year horizons. The study is expected to identify potential generation projects totaling up to 4,050 megawatts of installed capacity.

Manuel Herrera, Minister of Sustainable Energy Development, said the analysis will provide critical technical data to strengthen planning and maintain conditions for economic growth. Antonio Lancaster, President, CCIJ, added that the study will help identify current and future infrastructure needs. Enrique Rubio, Director, Jalisco Energy Agency, said the assessment will include regional transmission and distribution systems, supported by advanced modeling to anticipate demand tied to industrial expansion.

Renewable Energy Leadership Strengthens Competitiveness

Jalisco’s energy strategy is also closely tied to sustainability goals, reinforcing its competitiveness in global markets increasingly focused on clean energy. The state currently generates 42% of its electricity from renewable sources, nearly double the national average of around 22%. Officials say this positions Jalisco as a leader in Mexico’s energy transition.

The Energy Efficiency Program, launched earlier this year, is conducting audits across municipalities to improve energy use. The initiative currently covers about 40% of the state and aims to reach all 125 municipalities by 2030.

Jalisco also leads the country in distributed generation, with more than 90,000 interconnection contracts, surpassing larger industrial states such as Nuevo León and Chihuahua.

Taken together, strong FDI growth and proactive energy planning are reinforcing Jalisco’s role as an expanding industrial hub in Mexico. The combination of skilled labor, infrastructure and investment-focused public policy continues to attract global companies while supporting long-term economic development. Authorities say future efforts will focus on increasing renewable energy capacity to 60% by 2030, expanding transmission infrastructure and sustaining industrial growth.