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Manufacturing in Mexico is having its moment. The US is buying inxa0— and so is China

·1 min

As US supply chains shift away from China, Mexico’s manufacturing sector is emerging as a winner. Manufacturing in Mexico is attractive for companies experiencing supply chain issues or wanting to reduce reliance on US-China trade. This trend, known as nearshoring, brings production facilities closer to domestic markets. Mexico’s manufacturing sector has the potential for long-term success, surpassing China as the top exporter to the US in 2023. Companies are drawn to Mexico due to lower labor costs, geographic proximity to the US, and the US-Mexico-Canada agreement. However, concerns of tariff evasion are drawing attention from the US government. Despite challenges, the Mexican manufacturing industry sees a multi-year driver of growth.