Mexico's Nearshoring Boosts Manufacturing Jobs While Concentrating Activity and Straining Infrastructure

Banamex’s analysis finds that nearshoring has added roughly 250,000 manufacturing jobs in Mexico, raising employment in high‑value sectors from 1.51 million in 2018 to 1.76 million in 2023 – a 16.6 % increase versus 7.4 % in other manufacturing. However, the gains are concentrated in the northern border and Bajío regions, whose share of nearshoring‑related employment rose from 85.6 % to 86.6 %, while the south‑southeast fell from 2.2 % to 2.1 %. Cities such as Ciudad Juárez and Tijuana together account for nearly one‑third of national electronic‑sector jobs.

Experts warn that insufficient water and energy supplies are limiting further expansion. BBVA Mexico’s José Luis Cano said, “(El nearshoring) no se ha podido explotar al nivel que queremos porque no se ha podido tener el nivel de penetración por falta de energía y agua.” Claudia Esteves of the Mexican Association of Industrial Parks added that the nearshoring wave has passed and the country must now focus on broader North‑American integration, with annual T‑MEC reviews influencing investment decisions.