The Mexican government is committed to showcasing the country's professional and specialized profiles to attract foreign investment and facilitate the relocation of production to North America. Mexico's young and hardworking population, with an average age of 29, makes it an attractive destination for businesses looking to tap into its labor force.
The Mexican education system has been committed to improving its quality to leverage its demographic advantage. From 2000 to 2020, the average schooling of Mexicans increased from 7.5 to 9.7 years. To ensure this trend continues, the government has provided scholarships to over 10 million students, representing an investment of more than $2.2 billion. In 2023, the federal government will allocate approximately $9.1 billion to higher education alone.
The public education system currently offers 1,335 undergraduate programs in information technology, engineering, manufacturing, and construction, which are attractive for relocating supply chains in North America. Each year, more than 451,000 students graduate from the public system, with 37.5% of them studying Science, Technology, Engineering, and Mathematics (STEM) disciplines. Mexico is the second country with the most engineers among the Organization for Economic Cooperation and Development (OECD) member countries.
The Mexican workforce is considered one of the ten most attractive in the world, thanks to its high availability, efficiency, progressive regulatory frameworks, and productivity improvements. This, combined with factors such as geographical position, political stability, and the United States-Mexico-Canada Agreement (USMCA), has contributed to Mexico being one of the top ten countries attracting foreign investment.
Main report in PDF https://www.gob.mx/cms/uploads/attachment/file/828153/talento-mexicano_ing.pdf
The Mexican government's initiative to attract foreign investment and facilitate the relocation of production to North America is well-founded. Mexico has a young and hardworking population, a growing education system, and a competitive workforce. Additionally, Mexico's geographical position, political stability, and trade agreements with the United States and Canada make it an attractive destination for businesses.
Mexico is a country with a young and growing population, a strong education system, and a competitive workforce. In recent years, the Mexican government has made significant investments in education and infrastructure to attract foreign investment and facilitate the relocation of production to North America.
Mexico has a median age of just 29, making it one of the youngest countries in the world. This demographic advantage gives Mexico a large pool of potential workers to draw from. Additionally, Mexico's labor force is highly educated, with over 9.7 years of average schooling.
The Mexican education system has been committed to improving its quality in recent years. The government has provided scholarships to over 10 million students and allocated approximately $9.1 billion to higher education alone in 2023. The public education system currently offers 1,335 undergraduate programs in information technology, engineering, manufacturing, and construction, which are attractive for relocating supply chains in North America.
The Mexican workforce is considered one of the ten most attractive in the world. Mexican workers are known for their high productivity, efficiency, and work ethic. Additionally, Mexico has a progressive regulatory framework that supports businesses and protects workers' rights.
Nearshoring is the process of relocating production or other business activities to a nearby country. Mexico is a popular destination for nearshoring due to its proximity to the United States, its competitive labor costs, and its free trade agreements with the United States and Canada.
Nearshoring to Mexico can offer a number of benefits to businesses, including:
While nearshoring to Mexico can offer a number of benefits, there are also some challenges that businesses need to be aware of, including:
Overall, Mexico is a well-positioned country for nearshoring. It has a young and educated workforce, a progressive regulatory framework, and free trade agreements with the United States and Canada. However, businesses need to be aware of the challenges of nearshoring to Mexico, such as cultural differences, the language barrier, and infrastructure challenges.
Businesses that are considering nearshoring to Mexico should take the following steps:
Overall, Mexico is a well-positioned country for nearshoring. It has a young and educated workforce, a progressive regulatory framework, and free trade agreements with the United States and Canada. However, businesses need to be aware of the challenges of nearshoring to Mexico, such as cultural differences, the language barrier, and infrastructure challenges.
Recommendations
Businesses that are considering nearshoring to Mexico should take the following steps:
By following these steps, businesses can increase their chances of success when nearshoring to Mexico.