Mexico | Nearshoring is not viable without investment in human capital

Summary

Human capital formation faced great challenges prior to the pandemic; conditions are likely to have worsened with COVID-19. It is necessary to prioritize and strengthen the educational system. Without investment in human capital, there can be no nearshoring in the medium and long term.

Key points

• Key points:
• Investment in human capital is a key factor in materializing the benefits of nearshoring.
• Nearshoring has gained relevance for Mexico, given that it is strategic for the United States to diversify production chains and reduce dependence on China.
• Companies have seen nearshoring and friendshoring as a strategic option to be less vulnerable to disruptions such as COVID-19 and geopolitical conflicts such as the war in Ukraine and Russia.
• The education system was not prepared for an event of the magnitude of COVID-19.
• Without investment in human capital, there can be no nearshoring in the medium and long term - with higher value-added sectors.

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