Mexico needs to invest more to attract relocating companies
For Mexico to fully seize the opportunity of industrial relocation, it will require an investment in infrastructure of more than 400 billion dollars by 2032.
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Economia SICT
This forecast was made on Monday by the undersecretary of Transportation of the Secretariat of Infrastructure, Communications and Transportation (SICT), Rogelio Jiménez Pons, when releasing preliminary studies on the subject conducted by the Mexican government and the consulting firm MacKenzie.
"An estimate, I would say a conservative one, places the figure at over 400 billion dollars by 2032 to fully capture the 'nearshoring' opportunity," he stated during an online meeting of the College of Civil Engineers of Mexico.
These calculations are based on an increase in water consumption for industrial use of between 34% and 54%, energy of around 53%, in addition to the investments planned in the country's transportation system, in the construction of industrial parks, as well as housing and service areas.
Taking advantage of the phenomenon of industrial relocation could bring Mexico foreign direct investment of up to 530 billion dollars, Jiménez estimated.
During his speech, the official warned that Mexico's current logistics costs are double those of its partners in the North American Free Trade Agreement (NAFTA), the US and Canada.
He lamented, in particular, that all the comparative advantages, such as geographic location, labor costs, resources and climate end "when logistics costs are taken into account".
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