The certainty of investments, an essential factor for “nearshoring” in Mexico

The security and certainty of investments in Mexico They constitute an essential factor for the country to take advantage of a particularly favorable situation for its economic development, such as the phenomenon of the so-called ““nearshoring”by virtue of which companies establish a part of their production closer to the final destination, was highlighted today at the beginning of the fifth edition of the Industrial Transformation Mexico (ITM), the most important industrial fair in Mexico.

Technology and innovation are presented as the challenges of the future for the country to take advantage of the boom in company relocation, highlighted Jochen Köckler, president of the Board of Directors of Deutsche Messe, a German company that organizes important international industrial meetings.

“The most important aspect for investment is trust,” Köckler emphasized at the inauguration of the Industrial Transformation Mexico (ITM).

Köckler visited the Mexican city of León, in the central state of Guanajuato, to inaugurate the fifth edition of the most important industrial meeting in the country, the Industrial Transformation Mexico (ITM).

Employment, social development and economic benefits

The industrial leader pointed out that certainty will generate opportunities in Mexico to attract companies that promote employment, social development and economic benefits, as well as underpin the technological and digital transition in the era of industry 4.0.

Köckler insisted that there are businessmen motivated to invest in Mexico, but in addition to that each one “you need trust and you need a reliable and safe environment, looking at financing, looking at education, looking for contracts that are reliable, safe and fair.”

The director of Deutsche Messe, of German origin, stated that if this security exists, foreign companies will be willing to bring their supply chains to Mexico.

He added that this benefits Mexico with greater experts in various industrial branches, which is why he recommended that politicians maintain this environment of confidence for investment.

Better quality jobs

He also considered that it will be important to diversify the investments that come to the country to expand the capacity for well-paid jobs.

In this sense, Köckler emphasized that “It is an ideal moment for Mexico” due to the reconfiguration of production chains after the effects of bottlenecks in global trade.

This in the context of the war between Russia and Ukraine, the disruptions due to the covid-19 pandemic, and the trade war between the United States and China.

“What we learned is that you really need a secure supply chain and that you can’t produce everything in one place,” said.

Mexico, a strategic location

Köckler expressed that Mexico will play an important role for the “unique possibility” which gives it its geographical position in North America and its proximity to the largest market in the world, the United States, its main trading partner.

Likewise, he highlighted that Mexico has trade agreements with all of Europe, which enhances the interest of global companies in relocating their production lines to the country.

The director of Deutsche Messe assured that German companies see a lot of potential in Mexico to do business and bring their factories to the country.

“Mexico is a very attractive place. That is one of the reasons why we promote industrial transformation”he concluded.