Nearshoring News Update

Latest on the Nearshoring trend in Mexico.

North America to make 25% of what it imports from Asia: Mexico
January 13, 2023  

MEXICO CITY (Reuters) — Mexico, the U.S. and Canada plan to produce in North America 25% of what they currently import from Asia under a new drive to promote the integration of the region’s economy, Mexican Foreign Minister Marcelo Ebrard said on Thursday.

https://asia.nikkei.com/Economy/Trade/North-America-to-make-25-of-what-it-imports-from-Asia-Mexico  

Why Chinese Companies Are Investing Billions in Mexico
NY Times Article, February 3, 2023  

Alarmed by shipping chaos and geopolitical fractures, exporters from China are setting up factories in Mexico to preserve their sales to the United States.

https://www.nytimes.com/2023/02/03/business/china-mexico-trade.html  

Tesla’s Monterrey Plant Ushers In Mexico’s Electric Vehicle Age
Bloomberg Article, March 1, 2023

1. Shift to south of US border brings labor, trade advantages.
2. Biden’s IRA allows credits for EVs made in North America.

https://www.bloomberg.com/news/articles/2023-03-01/tesla-plant-in-monterrey-ushers-in-electric-vehicle-age-for-mexico

Tesla to build next plant in Mexico     
CNN Article, March 1, 2023

Reuters reported that Mexican officials said the plant could cost $1 billion. Most of the global automakers already have assembly plants in Mexico. According to Reuters, there are 20 auto assembly plants in the country. General Motors has three, Ford has two, including one that make its Mustang Mach-E, the EV SUV that is a competitor to Tesla. Stellantis — which builds cars under the Chrysler, Dodge, Ram and Jeep brands — has three.

In addition Toyota, Honda, Nissan, Volkswagen, Audi, Mazda, Mercedes, Kia and BMW all have plants in Mexico.

https://www.cnn.com/2023/03/01/business/tesla-mexico-plant/index.html

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Financial Analysis of Starting Operations in Mexico: Cost, Risk, and Time-to-Value

For North American B2B tech companies, expanding into Mexico offers both cost savings and access to top talent—but the approach matters. A DIY setup can be slow, risky, and expensive, while the Subsidiary-as-a-Service (SUBaaS) model delivers speed, compliance, and significant savings. By paying only for what they use, companies can reduce operational costs by up to 70%, avoid legal and compliance pitfalls, and launch in weeks instead of months. SUBaaS makes nearshore operations scalable, capex-friendly, and investor-approved—helping businesses stay lean and competitive in a volatile global economy.

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What’s in a Name? GCC-as-a-Service, Micro Capability Center, GBS, CoEs, Subsidiary-as-a-Service, and More

Global expansion is no longer limited to large enterprises—but the terminology used to describe new foreign operations has become confusing. Are companies launching a Global Capability Center, a CoE, a Micro Capability Center, or simply a regional office? The distinction between frameworks like Subsidiary-as-a-Service (SUBaaS) and functions like GCC or GBS is often overlooked, slowing clarity and execution. As nearshore strategies in Mexico grow, Micro Capability Centers—lean, agile teams under SUBaaS—are emerging as the preferred model. Getting the terminology right ensures alignment, realistic expectations, and scalable growth.

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Illustration comparing integrated nearshore strategy vs. fragmented stand-alone expansion for global business growth

Integrated Strategy vs a Fragmented Stand-Alone Expansion

Offshoring is evolving, and Mexico has emerged as the premier nearshore destination for global companies—not just in tech but across industries. Yet, the traditional path of juggling multiple vendors for legal, payroll, recruitment, and compliance creates costly delays and risks. Soft-landing providers offer a smarter alternative: turnkey Subsidiary-as-a-Service (SUBaaS) models that deliver speed, compliance, and scalability from day one. By consolidating operations under one accountable partner, companies reduce overhead, build trust with top talent, and scale confidently in Mexico’s dynamic market.

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