The Canadian government set an example for Mexico in manufacturing nearshoring in a report released on Monday.
It is a report by Export Development Canada (EDC), Canada‘s official export credit agency, which offers financing and insurance to support Canadian companies in international trade.
The reference to nearshoring was included as part of the long-term global trends considered by EDC.
manufacturing nearshoring
The EDC indicated that companies are investing in supply chain technologies and positioning new factories and distribution centers closer to end destinations.
“A clear example is the offshoring of manufacturing companies in Mexico, which seeks to take advantage of lower wages and integration into the North American economy,” he said.
Near-shoring, also known as relocation, is gaining ground in global chains. This phenomenon consists of bringing production closer to consumer markets. Instead of manufacturing far away, companies move operations to neighboring countries.
This strategy has several advantages. On the one hand, it reduces logistics costs. On the other, it shortens delivery times and improves efficiency. It also reduces operational risks and ensures product availability in the end market.
In a context of geopolitical tensions and logistical disruptions, nearshoring presents itself as an agile, competitive and resilient solution.
Investments
According to The Mexico Fund, Mexico’s international trade continued to record record highs, while nearshoring signals are positive, as the country has benefited from the reorganization of global trade and now has the largest market share in U.S. imports, surpassing China.
In addition, new foreign investments have been announced, generating a chain reaction of increased demand for electricity and industrial real estate, which could boost long-term economic growth.
Mexico set a new record in foreign direct investment (FDI) during the first quarter of 2025. The country attracted 21.4 billion dollars. This result represents an increase of 5.4% compared to the same period in 2024. The figure is still preliminary, but reflects the growing interest of international investors in the Mexican economy.
The nearshoring trend is driving important changes in infrastructure. Companies adapt their operations to new market demands. This generates investments in transportation, logistics and industrial parks.
With international representations in several Latin American (LATAM) countries, EDC is well positioned to support medium and large Canadian companies looking to expand their business there. Together with the Trade Commissioners Service and other Team Canada partners, the LATAM team provides unique in-market assistance to Canadian exporters and investors.