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Home FEATURED

Nearshoring: The Industrial Phenomenon Facing Critical Labor Challenges

The relocation trend is pushing companies to invest in training and employee well-being.

T21 Media by T21 Media
2 September, 2024
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Nearshoring ( the relocation of production lines to consumption centers) in Mexico is generating economic growth by attracting investments and creating new jobs. However, this industrial phenomenon presents significant labor challenges , especially in managing well-being and training talent, which could compromise long-term benefits if not addressed properly.

In that regard, Lina Vanegas, Betterfly ‘s marketing leader in Mexico, commented that the rise of nearshoring contributes substantially to the country’s economy, contributing 15% in 2023, according to the National Institute of Statistics and Geography (Inegi) . However, this rapid expansion imposes considerable pressures on the workforce, highlighting the need for a more comprehensive strategy that encompasses employee training and well-being.

In this regard, a recent study by the International Labour Organization (ILO) revealed that 60% of employees in the nearshoring sector experience high levels of stress due to constant demand and long working hours , while the Mexican Association for Safety and Hygiene at Work (AMHS) reported a 25% increase in musculoskeletal problems among those who work in these companies, caused by a sedentary lifestyle and poor posture.

According to Vanegas, in terms of employee well-being, companies face the challenge of managing a workforce that, in many cases, is subject to high levels of stress.

“Sixty percent of employees in sectors such as logistics, operations and manufacturing experience excessively high levels of stress, which directly impacts their productivity,” said Vanegas.

She also said that this situation allows for an increase in the implementation of welfare programs that seek to mitigate the negative effects of these working conditions.

“Leading companies in the sector have implemented psychological support and mindfulness programs that, according to the International Stress Management Association (ISMA), have been shown to reduce work-related stress by 30%,” said Vanegas.

In addition to mental health, physical health has also become a focus. A study by the National Autonomous University of Mexico (UNAM) shows that employees who participate in exercise programs report a 20% decrease in physical health problems.

In this context, companies have begun to incorporate active breaks and offer gym memberships as effective strategies to improve the health of their employees, as explained by Lina Vanegas.

Furthermore, rapid technological evolution requires constant updating of skills. A Deloitte report indicates that 70% of employees in the nearshoring sector feel the pressure of keeping up with new technologies, which can lead to mental fatigue and burnout .

On this topic, Vanegas explained that Betterfly, for example, offers its users access to online training platforms, allowing them to acquire new skills at no additional cost, which contributes to maintaining a competitive and well-prepared workforce.

For its part, the Mexican Foundation for Innovation and Technology Transfer (FMITT) reported a 40% increase in the productivity of employees who participate in continuous training programs.

However, the lack of alignment between educational provision and labour market demands remains a challenge. Mexico ranks last among OECD countries in terms of the percentage of young people enrolled in higher education, and career choices have not changed significantly over the past decade.

To address this challenge, the Mexican Institute for Competitiveness (IMCO) proposes developing strategies to promote higher education and improve the connection between the educational offer and the demand for talent in the private sector.

Nearshoring thus offers Mexico a unique window of opportunity to strengthen its economy, but to make the most of it, it is crucial that the country addresses the challenges of talent development and workplace well-being.

For the Betterfly specialist, companies must invest in wellness and training programs to ensure a healthy workforce prepared for the challenges of the future.

“The comprehensive well-being of employees is not only a corporate responsibility, but a strategic investment that is reflected in the productivity and commitment of the team,” explained Vanegas.

To foster dialogue on the opportunities presented by nearshoring, Grupo T21 will organize the Transportation and Logistics Meeting (ETYL) on October 9 and 10 in Nuevo León. With the central theme “Maximizing logistics opportunities with nearshoring ,” this event will bring together important industry leaders in Mexico.

Comment and follow us on X: @karinaquintero / @GrupoT21

Tags: AMHSBETTERFLYILOIMCOINEGINERASHORINGWORKPLACE WELL-BEING

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