The general director of the Coordinator for the Promotion of Foreign Trade (Cofoce) , Luis Ernesto Rojas Ávila, said that although Mexico is close to the US market and has a privileged geographic position, it attracts less than 5% of the companies that have left China , compared to competitors such as India and Vietnam.

“Mexico has a privileged strategic position. However, so far less than 5% of all that has been repatriated outside of China has arrived in Mexico. Nearshoring arises in the midst of the trade war between the United States and China, which has expanded into a national security dispute that is practically at very advanced levels,” explained Roja Ávila.

This context presents a structural change in international trade, with a growing demand for integration in supply chains outside Asia. Rojas Ávila said that November 5 will be a turning point for the global economy , due to the elections in the United States, which could “rewrite a new chapter in the world economy,” affecting import policies and favoring or limiting the entry of Chinese products.

This situation puts Mexico in a strategic position to become a “ supply hub for the United States and Europe .”

However, according to the director of Cofoce, there are still barriers that limit full integration, which is why he urged strategic decisions to be made so that Mexico is not only an assembly country, but a key player in high value-added supply chains .

“Mexico’s worst enemy is Mexico itself; we need to react. The opportunity is there, but we have to really take advantage of it,” Rojas Ávila said.

During his presentation, Rojas Ávila showed a graph with the US industrial focus projected towards 2030, where sectors such as high technology, artificial intelligence and human transport drones predominate .

He stressed that the United States will begin to abandon the manufacturing of certain basic products, “everything that has to do with manufactured basic products, coal, machinery , even the entire issue of fashion, footwear and clothing,” he explained.

This reconfiguration in the United States opens opportunities for Mexico to become a supplier of these lower-value but high-demand products.

Rojas Ávila also identified strategic sectors, such as aerospace, agriculture and electromobility, which are key to the US economy and offer great opportunities for Mexico.

He explained that these industries depend on skilled labor and a continuous supply of components, due to US restrictions to avoid dependence on China.

Meanwhile, in the agricultural sector, he said that companies in the United States have begun to opt for ready-to-eat products , due to the lack of personnel in the restaurant sector.

“Instead of buying fresh products, they now need products that are ready to serve. Don’t sell me broccoli anymore, don’t sell me asparagus anymore, rather sell it to me in a salad that is already cut and washed,” Rojas Ávila exemplified, on how the American market is looking for alternatives that Mexico could offer.

The director also highlighted the interest of European companies, especially from Spain and other countries of the European Union, in establishing alliances with Mexico in the context of euroshoring .

This trend arises due to high costs and rising inflation in Europe , which is encouraging the relocation of production to more accessible countries such as Mexico.

In this context, Spanish companies began to partner with Mexican producers to develop and export high-value products such as artichokes and other ready-to-eat foods, taking advantage of the logistical advantage offered by Mexico.

Rojas Ávila also highlighted a recent case: “The largest artichoke company in Europe comes to Mexico and says: we are going to develop it, harvest it and sell it as a ready-to-eat product.”

Rojas Ávila also stressed the importance of integrating Mexican micro, small and medium-sized enterprises (MSMEs) into global supply chains, which are currently disconnected from large transnationals.

He mentioned that according to data from the National Institute of Statistics and Geography (INEGI) , 75% of the inputs used by multinational companies in Mexico are imported, which limits the participation of local MSMEs in these value chains.

“If we fail to integrate MSMEs, nearshoring will fail without providing any significant benefits for the country. Companies must acquire certifications and comply with international quality standards to take advantage of this opportunity. The pieces are already there; all we have to do is fit them together,” said Rojas Ávila.

Regarding the aerospace industry, he stressed that Mexico is already emerging as an important center for this industry, especially in the manufacturing of components and advanced technology services.

“Let me tell you that the largest investment in the entire aerospace and aeronautical industry, including engines, interiors, exteriors, is coming to Mexico,” Rojas Ávila shared.

He said the aerospace sector pays high salaries and requires long-term commitments and significant technology transfer.

He said that this represents a boost for Mexican talent, but also demands that the country offer adequate conditions for investment.

Rojas Ávila also urged young people and entrepreneurs to adopt a long-term vision that positions Mexico as a competitive country , capable of taking advantage of the economic transition that nearshoring implies.

“We cannot continue selling ourselves as a country with cheap labor. It is time to go out into the world, prepare ourselves and change the international perception of Mexico,” he said, encouraging those present at the 2024 Transport Logistics Forum to think about how the country can differentiate itself on a global level.

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

El cargo Mexico must capitalize on nearshoring to boost its economy: Cofoce apareció primero en T21.

The general director of the Coordinator for the Promotion of Foreign Trade (Cofoce) , Luis Ernesto Rojas Ávila, said that although Mexico is close to the US market and has a privileged geographic position, it attracts less than 5% of the companies that have left China , compared to competitors such as India and Vietnam.

“Mexico has a privileged strategic position. However, so far less than 5% of all that has been repatriated outside of China has arrived in Mexico. Nearshoring arises in the midst of the trade war between the United States and China, which has expanded into a national security dispute that is practically at very advanced levels,” explained Roja Ávila.

This context presents a structural change in international trade, with a growing demand for integration in supply chains outside Asia. Rojas Ávila said that November 5 will be a turning point for the global economy , due to the elections in the United States, which could “rewrite a new chapter in the world economy,” affecting import policies and favoring or limiting the entry of Chinese products.

This situation puts Mexico in a strategic position to become a “ supply hub for the United States and Europe .”

However, according to the director of Cofoce, there are still barriers that limit full integration, which is why he urged strategic decisions to be made so that Mexico is not only an assembly country, but a key player in high value-added supply chains .

“Mexico’s worst enemy is Mexico itself; we need to react. The opportunity is there, but we have to really take advantage of it,” Rojas Ávila said.

During his presentation, Rojas Ávila showed a graph with the US industrial focus projected towards 2030, where sectors such as high technology, artificial intelligence and human transport drones predominate .

He stressed that the United States will begin to abandon the manufacturing of certain basic products, “everything that has to do with manufactured basic products, coal, machinery , even the entire issue of fashion, footwear and clothing,” he explained.

This reconfiguration in the United States opens opportunities for Mexico to become a supplier of these lower-value but high-demand products.

Rojas Ávila also identified strategic sectors, such as aerospace, agriculture and electromobility, which are key to the US economy and offer great opportunities for Mexico.

He explained that these industries depend on skilled labor and a continuous supply of components, due to US restrictions to avoid dependence on China.

Meanwhile, in the agricultural sector, he said that companies in the United States have begun to opt for ready-to-eat products , due to the lack of personnel in the restaurant sector.

“Instead of buying fresh products, they now need products that are ready to serve. Don’t sell me broccoli anymore, don’t sell me asparagus anymore, rather sell it to me in a salad that is already cut and washed,” Rojas Ávila exemplified, on how the American market is looking for alternatives that Mexico could offer.

The director also highlighted the interest of European companies, especially from Spain and other countries of the European Union, in establishing alliances with Mexico in the context of euroshoring .

This trend arises due to high costs and rising inflation in Europe , which is encouraging the relocation of production to more accessible countries such as Mexico.

In this context, Spanish companies began to partner with Mexican producers to develop and export high-value products such as artichokes and other ready-to-eat foods, taking advantage of the logistical advantage offered by Mexico.

Rojas Ávila also highlighted a recent case: “The largest artichoke company in Europe comes to Mexico and says: we are going to develop it, harvest it and sell it as a ready-to-eat product.”

Rojas Ávila also stressed the importance of integrating Mexican micro, small and medium-sized enterprises (MSMEs) into global supply chains, which are currently disconnected from large transnationals.

He mentioned that according to data from the National Institute of Statistics and Geography (INEGI) , 75% of the inputs used by multinational companies in Mexico are imported, which limits the participation of local MSMEs in these value chains.

“If we fail to integrate MSMEs, nearshoring will fail without providing any significant benefits for the country. Companies must acquire certifications and comply with international quality standards to take advantage of this opportunity. The pieces are already there; all we have to do is fit them together,” said Rojas Ávila.

Regarding the aerospace industry, he stressed that Mexico is already emerging as an important center for this industry, especially in the manufacturing of components and advanced technology services.

“Let me tell you that the largest investment in the entire aerospace and aeronautical industry, including engines, interiors, exteriors, is coming to Mexico,” Rojas Ávila shared.

He said the aerospace sector pays high salaries and requires long-term commitments and significant technology transfer.

He said that this represents a boost for Mexican talent, but also demands that the country offer adequate conditions for investment.

Rojas Ávila also urged young people and entrepreneurs to adopt a long-term vision that positions Mexico as a competitive country , capable of taking advantage of the economic transition that nearshoring implies.

“We cannot continue selling ourselves as a country with cheap labor. It is time to go out into the world, prepare ourselves and change the international perception of Mexico,” he said, encouraging those present at the 2024 Transport Logistics Forum to think about how the country can differentiate itself on a global level.

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

El cargo Mexico must capitalize on nearshoring to boost its economy: Cofoce apareció primero en T21.

In the context of the upcoming elections in Mexico, scheduled for June 2nd, electoral logistics have become a monumental challenge. To ensure that the more than 97 million registered voters can exercise their right to vote, the National Electoral Institute (INE) has implemented a rigorous logistical plan, according to information shared by Top Flotillas and LOGEX.

This process has involved the printing and distribution of 317 million ballots, as well as numerous documents and materials necessary to ensure an orderly and secure voting process across the country.

The scope of the elections is vast, with 20,367 positions being renewed at the federal and local levels, including the presidency of the Republic. Additionally, 500 seats in the Chamber of Deputies, 128 senatorial seats, and several governorships, local congresses, municipal councils, and mayoralties in eight states will be contested.

The transportation of ballots and electoral materials has been carried out under strict security measures and in coordination with various institutions.

This process, which began on May 3rd and extended until May 17th, involved the participation of the National Defense Secretariat (SEDENA), the Navy Secretariat (SEMAR), and the National Guard, along with local security forces in each state.

These ballots, guarded along 24 different routes, arrive at the 300 district councils to be counted, sealed, and grouped before being delivered to each polling station.

Timely and secure delivery of the ballots has been crucial, as any delay could compromise the integrity of the electoral process. To ensure this, detailed procedures were implemented at every step of the way, from printing at the Graphic Workshops of Mexico (TGM) to the final distribution.

The production of the ballots began with the executive direction of electoral organization of the INE, responsible for their graphic design. Subsequently, TGM took charge of printing, using security paper with watermark and invisible inks. The ballots are printed in sheets and then cut, packaged, and sent to various destinations.

Each stage of the process was designed to guarantee the authenticity and security of the ballots, avoiding any possibility of substitution or fraud. Once printed, the ballots are grouped into blocks and placed in boxes identified with specific labels to facilitate their distribution.

The INE and security forces work to ensure that each step of the logistical process will be carried out with the utmost precision. From the reception of the materials in the electoral warehouses to the final delivery to the presidents of the polling station boards, every detail was crucial so that on June 2nd, voters find their ballots ready and in order.

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El cargo The Logistical Challenge to Ensure the June 2nd Elections in Mexico apareció primero en T21.

On Tuesday, the General Assembly of #SoyLogístico Association was held, during which the sector expressed its main concerns regarding infrastructure to Guillermo Ruiz de Teresa, coordinator of the Infrastructure Thematic Table of Xóchitl Gálvez’s team, candidate for the presidency by the coalition “Fuerza y Corazón por México”.

During the meeting, where the association ratified the presidency of Virgilio Paniagua, the logistics sector highlighted four main challenges they foresee for the next six-year term, on the eve of the presidential elections on June 2.

The challenges include: collaborating with the government for logistic infrastructure projects, increasing security on highways, railways, and customs in the country; working together to enhance efficiency and productivity in import and export processes; and increasing efficiencies in toll booths on highways and providing rest stops with services and security for operators.

Given this scenario, Guillermo Ruiz de Teresa, former General Coordinator of Ports and Merchant Marine during Enrique Peña Nieto’s administration, stated that considering the situation the current administration will leave the country, the strategy needs to be reconsidered. He pointed out three fundamental points that could be implemented.

Firstly, as Xóchitl Gálvez has already mentioned, the functions of the Armed Forces should be limited. “Airports cannot continue to be controlled by the Navy in some places, by the Army in others. Customs cannot be in the hands of the Army; this spoils logistics,” said the representative.

As a second point, he assured that at the beginning of the next six-year term, the economy will be in trouble due to the projects carried out by the current administration. Therefore, he emphasized the importance of opening opportunities for private investment in infrastructure.

“We have to open up private investment, something that was being opened up and was closed off during this six-year term. The government has a function and a priority that are social aspects. It will have to invest a lot in education, a lot in health, and the infrastructure part, which has a lot of important potential in itself, we have to open it up to the private sector and have good logistics,” stated Ruiz de Teresa.

Likewise, he indicated that there should be a shift in focus towards goods, services, and people, in order to channel investment towards projects that streamline processes and logistics, even if it’s not a “mega project”, as “infrastructure is not the main character, it’s a means to make this country better; if we use it to generate greater investment, we are doing the right thing.”

On the other hand, these projects must be complemented to ensure connectivity, which in turn will promote multimodality to make freight transportation more efficient and make the country more attractive to investments.

Finally, he emphasized that all conditions must be provided to companies, since, for example, “we are not providing sufficient capacity for energy and water,” which could also affect private investment.

“One thing is to work on connectivity and have nodes in different points, but there is no energy. If we don’t give the private sector a chance, there will be no energy, and if we want it to be clean, even more so,” stated Guillermo Ruiz de Teresa.

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El cargo Logistics sector expresses concerns about infrastructure to Xóchitl Gálvez’s team apareció primero en T21.