Mexico | Bank Financing Would Boost Value in Nearshoring Networks

Summary

The challenge for commercial banking in Mexico is to evolve in order to quickly and agilely adapt to the continuous transformation of the business ecosystem that nearshoring implies, generating efficiency in the mobilization of resources among the multidimensional network system that this production scheme will define.

Key points

• Key points:
• Nearshoring generates different productive network architectures with implications in terms of profitability and risks for the global and local business ecosystem.
• The advantages in terms of labor productivity, geographical proximity and cultural affinity, as well as the certainty and predictability provided by the USMCA make Mexico a suitable environment for the redirection of operations of US companies outside of China.
• Nearshoring in Mexico, in addition to balancing risks for US companies, locally constitutes a much-needed boost for investment, which would result in the creation of complementary value-generating networks.
• Regulatory facilities and respect for the current legal framework, both commercial and international, promote proximity in the transnational value network, increasing the attractiveness of a country as a recipient of capital flows in the form of nearshoring.

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