What Makes Monterrey Attractive for Nearshoring?
Monterrey, the vibrant industrial hub in northeastern Mexico, has become a top choice for foreign companies looking to nearshore their operations. Choosing to nearshore in this bustling industrial hub will undoubtedly be an innovative and strategic move for any company looking to thrive in today’s global marketplace.
But what makes Monterrey so appealing? Let’s explore three key reasons driving this trend.
- Cost Efficiency
Nearshoring in Monterrey offers substantial cost savings compared to operating in the U.S. or other developed countries. Lower labor costs and competitive real estate prices make it a financially viable option for many companies. Also, Monterrey’s proximity to the U.S. is a major advantage for companies aiming to streamline their supply chain logistics. With just a short distance separating it from crucial U.S. markets, businesses can significantly reduce transportation times and costs.
These savings can be reinvested into other business areas, fostering growth and innovation. Using Tecma’s Shelter Services, manufacturers can reduce their production expenses by over 50% when nearshore their manufacturing operations in Mexico. Foreign companies supply the necessary raw materials, machinery, and manufacturing expertise, while Tecma oversees all other operational aspects.
- Thriving Industrial Ecosystem
Monterrey is home to diverse manufacturing industries, creating a dynamic and supportive business environment that encourages collaboration, innovation, and knowledge sharing among companies, driving overall growth and competitiveness. The city has a long-standing tradition of industrial excellence, particularly in the manufacturing, automotive, electronics, and aerospace sectors. This established industrial base provides a solid foundation for companies looking to nearshore their operations, with Monterrey’s well-integrated industrial clusters and supply chains offering local expertise and support services.
Moreover, Monterrey has a well-developed infrastructure supporting business operations across various industries. The city has a modern transportation network, including highways, railways, and an international airport, ensuring seamless connectivity. Monterrey has 77 industrial parks in its metropolitan area equipped with state-of-the-art facilities, and the city’s robust telecommunications infrastructure supports the needs of tech-driven businesses.
- Skilled Workforce
Another major draw for foreign companies is the availability of a skilled and educated workforce. Monterrey is home to several top-tier universities and technical institutes, such as the Monterrey Institute of Technology and Higher Education (ITESM). These institutions produce a steady stream of engineering, information technology, and business management graduates. Over 25 percent of the Economically Active Population hold a Bachelor’s degree, while an additional 15 percent have either an Associate’s degree or a technical certification. Furthermore, 4 percent of this population has attained a Master’s degree. The most popular bachelor’s degree among women is in business administration, while men are more interested in engineering and manufacturing. Also, the local talent pool is skilled and bilingual, with many professionals fluent in Spanish and English, facilitating smoother communication with international partners.
Monterrey’s metropolitan area has over 5 million inhabitants. The largest age group comprises 20- to 24-year-olds, followed closely by 25- to 29-year-olds. These age groups are an asset for companies in the region.
Monterrey offers a well-rounded package of benefits for foreign companies looking to nearshore their operations. Strategic advantages, cost efficiencies, and a supportive business environment drive the decision to nearshore in Monterrey. With its skilled workforce, robust infrastructure, and proximity to the U.S., Monterrey stands out as an ideal location for foreign companies seeking to enhance their operations. It’s no wonder more and more businesses are choosing to call Monterrey their new home.
So, Monterrey offers a unique blend of benefits that make it a top choice for nearshoring and is sure to continue its rise as a leading destination for foreign companies. If you are considering nearshoring your operations, Monterrey should definitely be on your list of potential locations to explore further. If you are convinced of establishing an operation in Monterrey, call the Tecma Group for a soft landing and cost savings.
