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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cover image for blog on how to Learn how to open a business in Mexico, including key steps for business incorporation. Expert guidance for entering the Latin American market.

How to open a business in Mexico: Incorporating Your Tech Company

So, your tech company is evaluating opening an office in Mexico to hire nearshore talent or to enter the Latin America Market? But before you dive in, the question of how to open a business in Mexico arises, as well as what else should you be considering regarding business incorporation.

Yes, it has more steps and nuances than one would expect, but the following steps are usually what it takes to do it. Remember, this is just a starting point, and consulting with legal and financial professionals specific to your situation is highly recommended.

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Banner image for a blog highlighting main nearshoring and LATAM market entry cities, addressing the tech talent pool and tech talent shortage

Which cities in Mexico are the best for Nearshore Delivery and Market Entry?

Mexico’s geographical strategic location, population size and Talent pool make it the preferred nearshore location for North America. But it is also known as Latin America port-of-entry, because it’s one of the top two largest economies in the region and it is Spanish-speaking, as the vast majority of the region. So, the same city will support both strategies, right? No.

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