Mexico
North America’s biggest nearshoring winner: USMCA zero tariffs into the US, next to the largest market, low cost. The core springboard for Chinese firms entering North America "via Mexico".
Best for: Auto/aerospace nearshore manufacturing, electronics, industrial equipment, appliances, food processing, US-export factories.
The nearshoring upside is real, but firing is very expensive — price the exit before you enter Mexico; unjust-dismissal cost can eat the savings nearshoring gave you.
Market overview · how big the opportunity
Source: INEGI / Wikipedia (2024)
Business environment · what wins, what to watch
Open to foreign investment; USMCA gives zero tariffs to the US/Canada (subject to rules of origin); nearshore parks and suppliers are mature.
- USMCA zero tariffs straight into the largest US market
- Adjacent to the US — logistics speed and nearshore advantage
- Mature auto/electronics supply chains and industrial parks
- Labor cheaper than the US, young population
- Security and regional variation
- USMCA rules of origin and tightening review
- Local power/infrastructure strain
- Peso volatility and policy uncertainty
Industry opportunities
- Autos / aerospaceNearshore + USMCA, mature supply chains
- ElectronicsTijuana and other near-US electronics clusters
- Industrial equipmentNorth American production platform
- Appliances / food processingUS exports and domestic demand
- US-export factoriesIMMEX bonded manufacturing
Labor cost (summary) · what one hire costs
Minimum wage MXN 315.04/day (2026, higher in the northern border zone); employer IMSS etc. ~25–35% all-in (incl. SAR/INFONAVIT). Full breakdown in the hiring guide.
Getting started · first steps
- 1.Site: Monterrey/Saltillo/Bajio (autos) · Tijuana (electronics, near US)
- 2.Entity: S. de R.L. or S.A.; can join the IMMEX bonded-manufacturing program
- 3.Hiring: ample manufacturing workers; mind unions and the 2019 labor reform (freedom of association)
Still choosing? Compare Mexico with other markets; once you decide, start by hiring.