Nearshoring to Mexico offers North American businesses cost savings, a skilled workforce, and streamlined logistics. Learn how flexible office solutions play a key role in enabling companies to scale operations efficiently in Mexico's dynamic market.
With growing uncertainty over global trade routes and the ease of international business, nearshoring to Mexico or other Latin American countries has become ever more attractive to North American businesses. However, scaling up requires strategic planning—especially when it comes to securing the right office space to manage your operations effectively.
Nearshoring is an evolution of outsourcing and offshoring, emphasising proximity. By operating in neighbouring countries, businesses can streamline logistics, save costs, and avoid challenges posed by intercontinental shipping routes and time zone differences.
This trend aligns with a global shift toward flexible and agile office spaces. As companies move away from traditional fixed leases, they are prioritizing adaptability to meet changing business needs. Flexible office solutions offer scalability, allowing businesses to expand or contract operations without being tied down by long-term commitments or unused real estate.
Navigating local business requirements can be complex, so partnering with experts like The Instant Group for office space and Biz Latin Hub for back-office support ensures a smoother transition and successful setup.
WHAT ARE THE ATTRACTIONS OF NEARSHORING TO MEXICO?
1. Lower labour costs
This is far and away the most important attraction of nearshoring. In Mexico, manufacturing wages, for example, are, on average, about USD$4 an hour, compared with USD$30 an hour for American workers. It’s not hard to understand the appeal here. Also, doing business in China is not as cost-effective as it used to be. Wages in the Asian giant have doubled on average over the past few years.
2. Shorter supply chain
It’s no secret that global supply chains have been fraught with problems in recent years; some have called it a supply-chain crisis. US companies don’t have to worry about travel or border restrictions when nearshoring to Mexico. Lower transportation costs and a shorter geographical distance mean products reach markets much faster. With ongoing complications in logistics due to conflict and disagreement, nearshoring is like futureproofing your supply side.
3. Free trade agreement with the US and Canada
Mexico is the third-largest trading partner of the US thanks to the United States-Mexico-Canada Agreement (USMCA), which evolved out of the old NAFTA trade pact. The trade agreement makes it easier for US companies to invest in the Mexican market and consider company formation there. It also allows for a freer flow of products and services across the borders of all three countries, meaning there are fewer impediments on the journey to market.
4. Large pool of skilled workers
Another benefit of nearshoring in Mexico is the country’s large pool of highly qualified and educated workers, particularly in manufacturing and tech. The universities turn out tens of thousands of engineering graduates each year. Their growth sectors have also graduated from basic assembly to more sophisticated industries such as R&D, product design, and medical devices.
5. Strong intellectual property regime
As the US continues to be a world leader in innovation, intellectual property (IP) and copyright protections are crucial. The USMCA agreement mentioned above establishes a robust protection regime for IP, copyrights, patent protection, and a specific subset of protections for agricultural and pharmaceutical innovations. This means that when operating in Mexico you will have the same assurances that you would elsewhere in North America.
6. Developed industrial infrastructure
The Mexican government has invested heavily in developing its infrastructure. Nearshoring in Mexico means businesses will have access to developed industrial areas, quality roads, and all essential building/structural utilities that an overseas company might need to begin operations. On top of that, there is a range of Free Trade Zones (FTZs) throughout the country that have been established to help overseas investment and operation.
WHY IS OFFICE SPACE NECESSARY FOR NEARSHORING IN MEXICO?
Whether you’re nearshoring for manufacturing or services, having the right office setup is crucial. Service-based nearshoring, a rapidly growing sector, especially benefits from modern, flexible workspaces that cater to the needs of a skilled workforce. Fully equipped spaces—with amenities like high-speed internet, ergonomic furniture, and collaborative areas—enhance productivity and employee satisfaction.
Even for businesses embracing hybrid or remote models, flexible office solutions remain valuable. Physical spaces provide an essential hub for client meetings, team collaboration, and operational oversight. However, committing to fixed real estate can be a risk. Agility is key—flexible office solutions allow you to scale up, down, or pivot as needed without straining resources.
When you’re considering international expansion via nearshoring to Mexico, consider The Instant Group for agile and flexible office solutions, as we can help you with all your real estate solutions in the country, no matter what the focus of your company.
