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Grupo Bimbo: its vision on nearshoring in Mexico

Grupo Bimbo highlighted the opportunities offered by the nearshoring strategy in Mexico.

Nearshoring involves a company transferring part of its operations or business processes, especially from Asia to North America, in order to obtain benefits derived from the war between the United States and China and to provide greater security to the supply chain due to the proximity. 

From Grupo Bimbo’s point of view, nearshoring represents an “extremely relevant” opportunity for Mexico to be able to seek the relocation of business and production operations in Mexico due to its privileged geographic location for the North American market, as well as its broad network of trade agreements, above more distant locations. 

Grupo Bimbo

This company also considers that Mexico represents advantages in labor costs, logistics, cultural affinity, without sacrificing quality or efficiency, among others. 

Mexico’s proximity to the United States and Canada, a highly qualified labor force and the network of free trade agreements position Mexico as an attractive pole for multinationals. 

Specifically, the northern and central regions of Mexico are the ones that have benefited from relocation on a national scale.

Quinquenio

Grupo Bimbo estimates that the large-scale positive impact of nearshoring may be reflected in five years or more.

Although in the short term, a significant number of relocations have also materialized in the northern part of the country.

As a result, Grupo Bimbo will benefit commercially from new consumers of its products. 

Opportunities

In Grupo Bimbo’s opinion, nearshoring represents the following advantages for Mexico:

  • Mexico has the opportunity to become more integrated not only to the North American market, but to the world.
  • The country can merge its production and value chains to final consumer goods that are marketed worldwide.
  • Mexico can further strengthen its export vocation.
  • Companies based in Mexico can further increase their sales in the provision of international services.
  • There are opportunities for the development of infrastructure for the import and transportation of inputs, as well as for the export of final or intermediate goods. 

Logistics

In sum, relocation, combined with certain infrastructure projects that can strengthen the transportation of goods on a large scale (as is the case with the development of the Isthmus of Tehuantepec), could strengthen Mexico as the hub of reference for the exchange of goods and the international connection between countries.