Nearshoring en Juarez

nearshoring in juarez

Why are Companies Nearshoring?

The Juarez region is experiencing dramatic growth during the trend of nearshoring, a business strategy in which a company relocates some or all of its manufacturing/service operations closer to their home country for the following reasons:

Reduced Transportation Costs: Nearshoring reduces the distance between production facilities and end markets. This is particularly advantageous for the industries that rely heavily on the efficient movement of goods, such as manufacturing and logistics. These are the types of companies that Axial Grupo has 40 years of experience building for and leasing to.
Improved Supply Chain Resilience: By investing in Mexico, companies are reducing their reliance on long and complex supply chains that typically used to begin in China. This issue became apparent to companies during the supply chain crisis during COVID-19.
Regulatory and Legal Alignment: One of the strongest bipartisan causes in the United States currently is the need for a reduced reliance on China. We are frequently seeing more regulations discouraging manufacturing investment in China in the form of tariffs or increased taxes. This is not the case with Mexico. The USMCA, or United States-Mexico-Canada Agreement, signed into law on July 1, 2020, bolsters trade between the United States and Mexico and will continue to support a strong relationship between the two countries.
Reduced Environmental Impact: Due to the aforementioned reduced distance between production facilities and end markets, companies moving their facilities to Northern Mexico are reducing the environmental impact of their operations. This aligns with their sustainability goals and reduces their carbon footprint.
Hard Data: According to CoStar, the leading provider of analytics for the commercial real estate industry, “Mexico’s share of US imports surpassed China for three straight months for the first time in decades” with no sign of slowing down.

Why Nearshore in Juarez?

Access to qualified labor: Ciudad Juarez offers access to qualified and affordable labor, helping companies reduce their employee turnover.
Affordable Transportation: Located right next to El Paso, Texas, Ciudad Juárez is the closest your businesses can get to the United States, while retaining all the advantages of having operations in Mexico. You save money, time, and effort when operating from Juárez compared to central or southern Mexico.
Existing industrial base: Almost 60% of Ciudad Juárez's economy is focused on the maquiladora industry. This includes more than 300,000 jobs on maquila operations, This way, the city is ready to meet your company's manufacturing or logistic needs.