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Nuevo Leon, Aguascalientes and Coahuila Have More Opportunities for Nearshoring: IMCO

The Mexican Institute for Competitiveness (IMCO) indicated that Nuevo Leon, Aguascalientes, and Coahuila have a better performance than the rest of the states and have facilities to take advantage of the trend of relocation of production chains to North America, a phenomenon known as nearshoring.

In its study “Nearshoring, priorities for regional development”, the IMCO pointed out that, in contrast, Oaxaca, Estado de México and Zacatecas are entities whose structural conditions make it difficult to attract investment and increase economic activities related to nearshoring.

He explained that the variables considered to evaluate which entities have more opportunities to take advantage of the nearshoring phenomenon go beyond Mexico's proximity to the United States and its current integration into global chains, by taking into account the availability of local resources and the structural conditions that facilitate investment and productive efficiency.

The first axis considered is the labor component, which includes factors such as the availability of labor, the level and infrastructure of education, and access to job training and skills such as English proficiency.

On the other hand, the structural axis of housing and public services is taken into account. The third axis of conditions necessary to attract investment and facilitate the relocation of production chains to Mexican entities is the availability of basic inputs, i.e., access to electricity and water at affordable prices and with a constant supply.

Finally, in terms of the rule of law and regulatory environment, data is presented on the incidence of crime in companies, the perception of the efficiency of the regulatory framework of the entity, and the existence of government programs aimed at attracting investment.