Why should companies invest in Mexico?

Updated: Aug 25

Mexico can be a strategic destination for companies in the United States. Known for being a strong manufacturing hub, Mexico is also positioned for growth post-pandemic thanks to an increase in nearshoring opportunities, an expanding workforce, and new trading agreements. The geographic proximity to the US is also a key factor as to why investing can be a great decision, given that Mexico accounted for 14.5% of the total US trade last year.


Another key reason why companies should invest in Mexico is the growing startup landscape. Both in Mexico and Latin America, venture capital investments in the region have skyrocketed, surpassing $15 billion last year. There were more than 650 deals according to the Association for Private Capital in Latin America (LAVCA) and the number promises to continue growing in 2022. Nubank from Brazil and Kavak from Mexico are leading the way for tech businesses. From fintech to retail and property tech, startups are transforming the Latin American landscape with the help of various VC funds.


Venture Capital firms decided to tap into Latin America’s undiscovered entrepreneur potential. In 2019, SoftBank launched its $5 billion Latin America Fund, after traveling the region and learning about the many startups that had great plans for growth but that lacked the funds. There are no signs of this slowing down as venture capital firms continue to support high-potential startups that are changing the lives of millions.


Some key statistics:

  • Mexico is the second-largest economy in Latin America and the 11th in the world.

  • Mexico has a strategic geographical location.

  • Mexico is a leader in industrial sectors, like the automotive industry, aerospace, and electronics.

  • Mexico has 13 trade Free Trade Agreements.

  • Mexico has a highly educated, bilingual, and skilled labor force.


 

Read more: How do the world’s top companies partner with others to enhance their supply chain?

 

Thinking about expanding your operations or investing in Mexico? We are here to help.

Our bicultural and experienced team can guide you in every step of the journey, safeguarding your investment. Reach out at connect@nepanoa.com and take the next step for your business.