Summary:
In this episode, we analyze Mexico's nearshoring boom, highlighting the uneven distribution of benefits across the country. While regions like Monterrey and Guadalajara thrive due to strong infrastructure and skilled labor, others, particularly in southern Mexico, lag behind due to poor infrastructure and security concerns stemming from cartel activity. We detail specific locations benefiting from and hindered by nearshoring, emphasizing the importance of infrastructure and security for successful manufacturing relocation. The impact of Mexican drug cartels on nearshoring is extensively discussed, outlining the various ways cartel activity increases risks and costs for businesses considering relocation. Finally, we conclude by noting that Mexico's nearshoring future depends on targeted investments and policy reforms to mitigate these risks.
Questions to consider as you read/listen:
How does Mexico's nearshoring boom geographically impact regional development?
What are the primary economic benefits and security risks of nearshoring in Mexico?
Which factors determine nearshoring success and failure across Mexican regions?
Get full access to GeopoliticsUnplugged Substack at geopoliticsunplugged.substack.com/subscribe)
