Back

COMEXI-PCNS webinar series 2024: Nearshoring boom: lessons from Mexico and Morocco

May 30, 2024
Related topics: 

Nearshoring in Mexico

Nearshoring in Mexico presents both importance and challenges for businesses. The country's proximity to the United States, its largest trading partner, offers strategic advantages such as reduced transportation costs and shorter lead times, making it an attractive destination for nearshoring operations. Additionally, Mexico boasts a skilled labor force, particularly in industries like automotive, aerospace, and electronics manufacturing, which align well with the needs of many nearshoring companies. Moreover, Mexico benefits from trade agreements like the USMCA (United States-Mexico-Canada Agreement), providing preferential access to key markets. However, nearshoring in Mexico also faces challenges, including security concerns in certain regions, bureaucratic hurdles, and regulatory complexities that may impede the ease of doing business. Infrastructure constraints, such as inadequate transportation networks and energy supply, can increase operational costs and pose logistical challenges for companies. Addressing these challenges while leveraging Mexico's strategic advantages is crucial for maximizing the potential of nearshoring in the country.

Nearshoring in Morocco

Nearshoring in Morocco is significant due to its proximity to Europe. This stability, coupled with developed infrastructure and efficient logistics, facilitates seamless operations and reduces investor uncertainties. It offers advantages like reduced transportation costs and access to a skilled workforce, particularly in the engineering and IT sectors. Trade agreements and government investments in infrastructure support nearshoring activities, making Morocco attractive for European companies to optimize their supply chains. The country's political stability, developed infrastructure, and efficient logistics bolster its appeal to investors. Macro factors such as trade openness and stable exchange rates further enhance its attractiveness. Moreover, Morocco boasts solid legal frameworks that prioritize and protect business rights and economic incentives, ensuring a stable and predictable business environment. However, challenges persist, including skill mismatches, technology transfer, and SME upgrading. Addressing these, alongside pressing concerns like achieving carbon neutrality and digitalizing the economy, is essential for Morocco to fully leverage its potential as a competitive nearshoring hub and sustain its appeal to foreign investors.

Importance of the webinar

In this context, the exchange of experiences and lessons learned between Mexico and Morocco is instrumental in bolstering their nearshoring opportunities and overcoming challenges in this domain. By sharing insights into their respective nearshoring endeavors, both countries can leverage each other's strengths and address common obstacles more effectively. Through collaboration and knowledge sharing, COMEXI and PCNS can contribute to identifying innovative solutions, actionable strategies, and the maximal capitalization of trends in the global nearshoring landscape. This exchange can also result in ideas that foster mutual growth and competitiveness in the nearshoring sector, that help drive economic development and create new opportunities for both nations.

RELATED CONTENT

  • Failure to Converge
    Authors
    Uri Dadush
    Uri Dadush
    April 2, 2021
    Incomes on the southern shores of the Mediterranean are about one-fifth to one-third of those on the northern shore, ratios that have not changed much over the last generation. This was not supposed to happen. The Barcelona Process, set up in 1995 as a partnership between the European Union and eastern and southern Mediterranean countries to promote regional growth and stability, economic integration through trade, investment, and orderly migration flows, was expected to boost incom ...
  • The EU's challenges post-COVID-19
    Len Ishmael & Abdessalam Jaldi
    April 02, 2021
    In a world where conventional threats to public safety and international security are increasingly a back seat, the Covid-19 pandemic has opened a new chapter in the discussion on how to ...
  • Download PDF
    Organismes génétiquement modifiés : Prometteurs ou problématiques pour la sécurité alimentaire ? Revue des principaux développements dans quelques pays industrialisés
    Authors
    Isabelle Tsakok
    Fatima Ezzahra Mengoub
    Isabelle Tsakok
    Fatima Ezzahra Mengoub
    March 31, 2021
    S'appuyant sur des décennies de recherche en biochimie, les bio-ingénieurs ont réussi à transférer des gènes d’une espèce à l’autre pour produire des organismes vivants (plantes et animaux, y compris les poissons) présentant les caractéristiques souhaitées. Contrairement à l’amélioration génétique qui est basée sur la sélection des traits souhaités au niveau des espèces à travers la reproduction traditionnelle, le processus de modification génétique aux laboratoires donne des résult ...
  • Un chemin semé d'embûches pour éliminer les subventions des carburants au Nigeria
    Authors
    Rim Berahab
    Rim Berahab
    March 31, 2021
    Depuis la découverte des ressources pétrolières du Nigeria en 1956, le secteur pétrolier a progressivement revêtu une importance considérable, jusqu'à devenir le principal moteur de l'économie du pays : le pétrole brut est le premier poste d'exportations (figure 1) ainsi que le principal pourvoyeur en réserves de devises et de recettes fiscales pour le gouvernement fédéral nigérian (figure 2). Cependant, malgré son importance, le secteur pétrolier n'a pas élargi la base productive d ...
  • Otaviano Canuto on Globalization and Technological Learning
    March 29, 2021
    Cross-border technological diffusion has contributed to rising domestic productivity levels in advanced and emerging economies and facilitated a partial reshaping of the global innovation landscape. However, there are local requisites to escalate the ladder of innovation capabilities. ...
  • Covid-19 et énergie: quels impacts ?
    Francis Perrin, Afaf Zarkik
    March 26, 2021
    Il y a un peu moins d'un an, durant la nuit du 20 au 21 avril 2020, le prix du WTI s’est effondré, atteignant les moins 37 dollars. Le 16 février 2021, le WTI franchit le seuil des 60 $, ...
  • A Possible Tug-of-war Between the Fed and the Markets
    Authors
    Otaviano Canuto
    Otaviano Canuto
    March 25, 2021
    The projections for United States GDP released by the Federal Reserve on March 17, pointed to a growth rate of 6.5% in 2021, well above December’s 4.2% forecast. Congressional approval of the Biden administration’s $1.9 trillion fiscal package and the vaccination march against COVID-19 explain the rise in the estimate. However, it should not be forgotten that growth in 2021 will follow a fall in GDP of 3.5% last year. While the expected unemployment rate at the end of 2021 is now 4 ...