Nearshoring Opportunities with the U.S.

Rising geopolitical tensions and supply chain disruptions in Asia have prompted U.S. firms to explore nearshoring opportunities in Mexico and Central America. Mexico’s integration with North American supply chains under the USMCA has positioned it as a key alternative to Asian manufacturing hubs, particularly in the automotive and electronics sectors. Multinational corporations are increasingly seeking to shorten supply chains to reduce shipping costs and mitigate risks from global shocks. Mexico benefits from proximity to the U.S. market, a large and skilled labor force, and established manufacturing clusters, particularly in states like Nuevo León and Baja California. This has fueled a surge in industrial park development and cross-border trade activity. Central America is also beginning to attract interest, especially in textiles, apparel, and light manufacturing. Countries like Honduras and El Salvador are leveraging trade preferences under CAFTA-DR to expand exports to the U.S. However, infrastructure limitations, energy costs, and political uncertainty remain barriers to scaling production capacity. Analysts note that nearshoring is not just about manufacturing but also about building resilience into supply chains. Digital trade platforms, logistics hubs, and new investment in ports and energy grids are critical to making the region more competitive. Policymakers are under pressure to provide stable regulatory frameworks, reduce red tape, and improve security to capitalize on this opportunity.

For U.S. firms, nearshoring offers the promise of cost efficiency and reduced reliance on Asia, but execution will depend on sustained improvements in infrastructure and governance across Latin America.