For many US companies, investment in Mexico has been the key to success. The country offers a thriving manufacturing sector, qualified workforce, and solid infrastructure, making it an attractive option for foreign direct investment (FDI). The benefits provided by the USMCA only further encourage US companies to consider Mexico as part of their long-term growth strategy. Additionally, continued investment has proven to be a powerful tool in modernizing operations. About 38% of FDI in Mexico during 2021 was reinvestment by established companies seeking to improve. This positions the country as a viable option not only for broadening the available market but also for renewing company processes.
Here are some of the major US companies that continue to invest in Mexico:
AT&T
This mobile phone operator expanded to Mexico in 2015 through the strategic purchase of a national company. Today, AT&T has become the second largest phone service provider in the country, and it only keeps growing. As of 2021, the company has seen a 7.2% increase in revenue and has announced its plans to provide commercial 5G services.
General Motors
A giant in Mexico’s automotive industry since the 1960s. Over the years it has been able to establish strong relationships with local suppliers, allowing it to become one of the leading manufacturers in Mexico. It has recently invested more than USD 1 billion in various projects, including the construction of a new plant that began operations in 2021.
PepsiCo
A food and beverage company that finds its second largest market in Mexico. PepsiCo has recently invested $80,000 million to modernize its logistics network over several years. So far it has established two new distribution centers and has announced the construction of a new plant in Guanajuato.
Aside from these household names, the country has received hundreds of new companies interested in expanding to Mexican soil. In 2021, 74 new companies settled in industrial parks all over the country. The number is expected to increase through initiatives such as “Invest in Mexico”, a new platform designed to attract foreign entrepreneurs. Among the recent newcomers are enterprises from the automotive industry like Neaton and NYX plastics, as well as Solar Plastics, a leader in rotational models that successfully expanded to Mexico with the aid of Nepanoa.
Opportunities for investment in Mexico are thriving. Nepanoa can help you seize them. Our team of experts is ready to provide guidance and discover the right opportunity for your business.
Read more: Relocating Business Functions to Mexico
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