Mexico has established itself as one of the destinations for the relocation of companies ( nearshoring ) , however, there are investments that have not been consolidated and areas of opportunity that the country has not yet been able to resolve.
Between 2018 and the first half of 2023 (1H23), Foreign Direct Investment (FDI) in Mexico accumulates a little more than 193 thousand 693 million dollars (million dollars) , culminating in 2023 at its historical maximum, with 36 thousand 058 million dollars ; while in the first half of 2024, 31,096 million dollars are already accounted for, according to data from the Ministry of Economy .
Despite this good moment and with great investment announcements, Mexico has not been able to resolve issues such as reducing congestion at customs crossings or offering energy security, among other issues, which can hinder exchange with the United States , which is the main market sought by companies that want to invest.
Given this panorama, Eduardo Covarrubias, representative of the Association of Mexican Entrepreneurs (AEM) Guanajuato chapter, indicated that ” capital has no homeland, it is where it is best treated ,” so in the face of the challenges that Mexico has, for example, the of road infrastructure, lack of resources such as energy, among others, some of these investments are looking for Texas, in the United States.
“It should be Mexico, but it’s going to be Texas, it’s getting the big applause. Relocation of very important corporations is coming and we have to study it, learn it, imitate it and be there,” stated Covarrubias.
He added that Texas shares a border with four states of Mexico -Chihuahua, Coahuila, Nuevo León and Tamaulipas-, so that location favors companies, being close to their ecosystem of suppliers in Mexico, but with better conditions.
According to CNBC ‘s Top States for Business 2024, Texas is the third best state in the United States to do business, with GDP growth of 5.7% in 2023 and an advance of 2.4% to the first quarter of 2024; It also enjoys favorable fiscal health and an unemployment rate of 4 percent.
Separately, Texas Governor Greg Abbott announced a record $142 billion investment in transportation infrastructure , including a $100 billion state highway construction plan over 10 years in collaboration with the Texas Department of Transportation (TxDOT) , a project that aims to improve safety, relieve congestion and strengthen connectivity .
In contrast, according to the Mexican Institute for Competitiveness (IMCO) , Mexico reduced the amount allocated to public investment by 11.1% in 2024 , which amounted to 1.11 trillion pesos, compared to the 1.19 trillion pesos allocated in 2023. Of this budget, only 605.5 billion pesos (54.6%) will be allocated to public works such as railways, roads, hospitals, among others.
This cut occurs at a critical time due to the nearshoring trend that requires increasing the supply of productive public infrastructure in key areas such as connectivity, electricity and water supply.
Furthermore, added to this is the uncertainty of what will happen in US politics, which is why companies are cautious in their investments, pausing some investment announcements.
“You have to be very expectant, there are many investments stopped, movements like those in currencies make everyone nervous,” said Eduardo Covarrubias.
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