Investment surges in Mexico as corporations shift supply chains, plan latest factories
Investment in Mexico has surged in the primary three months of 2024 as more corporations are looking south of the border to determine supply chain and manufacturing hubs, officials said.
From January through mid-March, Mexico has received investment commitments price greater than $31 billion, in comparison with $36 billion total in 2023.
“Mexico has change into the best attraction on this planet for investments,” Mexican Secretary of Economy Raquel Buenrostro said throughout the forty first general assembly of Mexico’s Business Coordinating Council (CCE) on March 19.
The CCE is one in all the country’s most influential organizations representing Mexico’s private sector.
Buenrostro said nearshoring continues to play a giant role in attracting more investments to the country.
“[Nearshoring] is here to remain and that isn’t going away,” Buenrostro said. “We’ve got to see how we integrate and the way we make the most of these opportunities at this moment.”
Buenrostro said between that Jan. 1 and March 15 there have been 73 investment announcements by each foreign and domestic corporations.
Mexico has achieved a high variety of investment announcements despite the very fact some predicted “2024 might be a weak 12 months as a result of the electoral 12 months, each in Mexico and the US, but we’re seeing that the pace of the arrival of investments isn’t going to alter,” Buenrostro said.
In keeping with data from Mexico’s Ministry of Economy, a number of the most up-to-date investments include:
— Mercado Libre, e-commerce: $2.4 billion
— Walmart, retail: $2.1 billion
— Yokohama Tire Corp., automotive industry: $380 million
— IKD, automotive parts supplier: $178 million
— Minth Group, automotive industry: $173 million
— Carnot Laboratories, pharmaceutical industry: $142 million.
Other corporations making recent investment announcements in Mexico include Amazon, DHL Supply Chain, Volkswagen, Maersk, FEMSA, Ternium, Solarever, ELAM-FAW and Unison Shanghai.
Up to now, nearly all of investments in Mexico this 12 months have originated from firms in the US (57%), followed by Germany (17%), Argentina (14%) and China (6%), in keeping with the Ministry of Economy.
Mexico’s manufacturing sector received nearly all of investments in 2024 to this point at 54%, followed by media (16%), commerce (15%) and transportation (14%).
The Mexican state of Queretaro in the middle of the country has received the most important share of investments at 18%, followed by the state of Mexico at 14%, with the northern state of Nuevo Leon receiving 10%.
The investments announced to this point this 12 months could take about two to 4 years to return to fruition, but could generate over 39,100 latest jobs by 2028, in keeping with Mexican authorities.
Michigan 3PL acquires Mexican freight brokerage, signs lease for Arizona warehouse
Supply Chain Solutions LLC (SCS) has acquired Transport Accion S.A., a Mexico City-based freight forwarder and brokerage.
“This acquisition is a strategic move that reinforces our commitment to offering comprehensive solutions in international logistics, enhancing our service offerings across the globe,” SCS CEO Les Brand said in a news release.
SCS is a world supply chain and transportation management solutions company headquartered in Grand Rapids, Michigan.
In a September 2023 interview with FreightWaves, Brand said SCS goals to spice up its cross-border Mexico services as more firms leave China and nearshore manufacturing operations south of the border.
“China trade is slowing down and it significantly took a giant portion of our revenues down because consumers are buying locally now,” Brand told FreightWaves.
SCS also recently leased a 156,751-square-foot warehouse on the Sight Logistics Park in Tempe, Arizona. Sight Logistics Park is an industrial facility comprising two Class A buildings totaling 357,000 square feet.
American Woodmark opens $45M plant in Monterrey, Mexico
Winchester, Virginia-based American Woodmark Corp. (NASDAQ: AMWD) has opened a 275,000-square-foot plant in Monterrey, Mexico.
The $45 million facility in Monterrey is the American Woodmark’s second plant in Mexico and is anticipated to generate around 400 direct jobs. It’s going to support the corporate’s stock kitchen and bath manufacturing capability, in keeping with a news release.
The corporate also has a producing facility in Tijuana, Mexico.
American Woodmark is one in all the most important cabinet manufacturers within the U.S., with greater than 10,000 employees, operating 19 manufacturing and distribution facilities.
Zipline Logistics acquires supply chain provider Summit Eleven
Zipline Logistics announced it has acquired Austin, Texas-based freight brokerage and provide chain services provider Summit Eleven.
The acquisition will enable Zipline to expand its transportation solutions in the patron packaged goods (CPG) space across Central Texas, while capitalizing on Summit Eleven’s temperature control and flatbed capabilities, officials said.
“With a powerful management team and mutual commitment to exceptional service, this union allows us to expand our presence and navigate the colourful landscape of Austin, Texas,” Walter Lynch, CEO of Zipline Logistics, said in a news release. “Together, we’re positioned to supply exceptional retail logistics solutions to fast-growing CPG brands.”
Columbus, Ohio-based Zipline Logistics is a personal equity-backed third-party logistics provider focused on the CPG space.
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