Between the Covid Pandemic that continues to be a factor and seems to have no end, the war between Russia and Ukraine that began almost a year ago and has affected the whole world directly or indirectly, and the inflationary economic crises around the globe, the noise seems to continue to torment us.

However, what is loss for some is gain for others. The year 2022 was a very good year for Mexico in the manufacturing industry in spite of all these factors previously mentioned. Although they did hurt the country, the numbers showed significant growth advances, which reflects a very good outlook for the year that is beginning.

Do you know the term Nearshoring?Let's discuss the term here, because it is the main cause of the growth Mexico is experiencing.

During the last decades, thanks to Globalization, the term that was used for business was the Offshoring , which is an outsourcing of business processes from one country to another, usually in search of lower costs or labor. It includes processes such as production, manufacturing, services and even innovation or research and development.

With the pandemic, the microchip crisis, the Russian War and Ukraine, delivery times and logistics costs skyrocketed. Suddenly, offshoring was no longer a viable option for businesses.

With this, the term nearshoring became popular, as countries now sought to place their manufacturing plants close to them in order to lessen these times and costs.

As the United States is a more important superpower, Mexico is immediately a global focus due to its geographic position and proximity to its northern neighbor.

According to official Treasury data, an economic growth of around 3% is expected for next year due to new investments in the country. For example, cities such as Tijuana and Ciudad Juarez. New investments are also expected in the center of the country.

As for public investment, due to all the factors mentioned above, during 2021 it had fallen to 2.8% of GDP. However, in 2022 it increased to 3.1% and an increase of 3.6% is expected for 2023.

With respect to our neighboring country to the North, it has remained very strong in the industrial and manufacturing sectors, which indicates an important factor for Mexico's industrial growth.