How Mexico is becoming the new China

In this insightful conversation, I sit down with Jacabo, who has boots on the ground in Mexico's industrial sector and a unique perspective on the rise of manufacturing in Mexico. We dive deep into the "nearshoring" trend, where companies are moving production closer to the U.S. as tensions with China grow. Jacabo explains how this isn’t just a recent shift; Mexico has been involved in nearshoring for decades, and thanks to agreements like NAFTA, the country has become a major player in global manufacturing.

As we discuss the supply chain challenges heightened by the pandemic, rising freight costs, and ongoing political issues, Jacabo sheds light on why businesses are looking to diversify beyond China and what makes Mexico a strong candidate. Although Mexico doesn’t have the population or infrastructure to absorb all the manufacturing demand shifting away from China, even attracting just 1% of it could mean a massive $350 billion boost to the economy. Jacabo also shares the impressive numbers—nearly 400 companies have moved operations to Mexico since 2022, with foreign investment projections suggesting a potential $100 billion in growth by year-end, although $40 billion is more realistic for now.

If you’re interested in global manufacturing trends, this interview offers a grounded look at why Mexico’s industrial sector is drawing so much attention.

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