From Yahoo Finance.: 2025-06-01 07:00:00

Borderlands Mexico reports on the latest developments in cross-border trucking and trade. This week saw nearshoring investments continuing to flow into Mexico, with companies like Buhler Group planning their first manufacturing facility in the country. Frisa also opened a $350 million steel factory in Monterrey, while a new $90 million logistics hub near Phoenix has been launched by NRS Logistics America Inc.

Foreign direct investment in Mexico hit a record $21.4 billion in the first quarter of 2025, with U.S. companies leading the way at 38.7% of total investment. The manufacturing sector attracted over 40% of the FDI. Nearshoring to Mexico is gaining momentum as companies reevaluate their reliance on manufacturing in Asia, with the move seen as a long-term solution.

However, nearshoring in Mexico faces challenges like security concerns, infrastructure needs, and trade policy uncertainty. Uncertainty around tariffs and disruptions like the COVID pandemic impact long-term investment decisions, making it difficult for manufacturers to quickly adjust their supply chains.

Buhler Group is constructing a $24 million plant in Torreón, Mexico, creating 200 jobs. Frisa opened a $350 million steel mill in Monterrey, generating over 450 jobs. NRS Logistics America Inc. launched a $90 million Chemical Logistic Park near Phoenix to serve semiconductor and electric vehicle markets.

Despite challenges, experts believe nearshoring to Mexico is a long-term trend that will benefit the country. Companies are actively considering relocating factories to Mexico due to trade war uncertainties, making it a potential winner in these shifting trade dynamics.



Read more at Yahoo Finance.: Nearshoring investments still flowing south of the border