Mexico has emerged as a key player in the global Information Technology (IT) industry, offering a range of opportunities for companies and professionals looking to tap into a growing market.

With its highly educated workforce, favourable business environment, strategic location, and vibrant startup culture, Mexico is poised to play a significant role in shaping the future of the IT sector.

In this article, we will explore the key factors that make Mexico an attractive destination for IT workers and why the future of this industry in Mexico is bright.

Mexico’s highly educated workforce is one of the most important reasons for its success in the IT industry. Mexico has a growing pool of highly skilled professionals with expertise in software development, data analysis, and other vital areas of the IT industry. Many of these professionals have received a world-class education. They are eager to apply their skills to a rapidly growing market. The education quality in Mexico is also improving since universities now offer computer science, engineering, and other IT-related programs that prepare students to enter the workforce with the skills they need to succeed.

Another factor that makes Mexico an attractive destination for the IT industry is its favourable business environment. Mexico has a strong commitment to free trade and open markets. It has established a supportive ecosystem for companies investing in the IT industry. This includes tax incentives, favourable labour laws, and a supportive regulatory environment encouraging investment and innovation. Mexico also has a thriving entrepreneurial culture, with many young entrepreneurs starting new companies in the IT industry. This entrepreneurial spirit is helping to drive growth and modernization in the IT industry, positioning Mexico as a leading player in the global market for technology and innovation.

Mexico’s strategic geographic location is another critical factor that makes it an attractive destination for the IT industry. The country is close to the United States, one of the world’s largest markets for IT products and services. It has a well-developed transportation and telecommunications infrastructure that makes it easy to connect with other markets in North America, South America, and beyond. This location also makes it easier for companies to access a large pool of skilled talent and take advantage of the many resources available in Mexico, such as low-cost labour, tax incentives, and a vibrant business environment.

The Mexican government has invested significantly in the IT industry, recognizing its potential to drive economic growth and create jobs. The government has implemented several initiatives to support the IT industry, such as tax incentives, grants, and other forms of support. These investments are helping to drive innovation and growth in the IT industry, positioning Mexico as a leader in the field.

Mexico is also home to a thriving startup culture, with many young entrepreneurs creating pioneering companies in the IT industry. This entrepreneurial spirit is helping to drive growth and innovation in the IT industry. Many of these startups focus on developing cutting-edge technologies, such as artificial intelligence, blockchain, and the Internet of Things, transforming businesses’ operations and competition.

In conclusion, the future of the IT industry in Mexico is bright, with a growing pool of highly skilled professionals, a favourable business environment, a strategic location, and a thriving startup culture. The Mexican government’s investment in the IT industry and its commitment to free trade and open markets are helping to drive innovation and growth. This project will promote Mexico as a key player in technology and creativity in the global marketplace. With its many advantages, Mexico is well-positioned to play a major role in shaping the future of the IT industry and become a leading centre for originality and development in the years to come.

If you want to travel to Mexico, check out the visa and vaccination requirements to enter this country. Whether you are a seasoned tech professional or a student just starting out in the field, Mexico is a destination that will inspire and excite you, offering opportunities for growth, learning, and adventure.


Source: DazeInfo Briefs

El 31 de enero del presente año, el gobernador del estado de Nuevo León, Samuel García, hizo el lanzamiento del evento “Americas´ Mobility of the Future“.

Este evento, organizado por Hannover Fairs México, el Clúster Automotriz de Nuevo León A.C. (CLAUT) y Nuevo León 4.0, con el apoyo del Gobierno del Estado de Nuevo León, es el primer evento en Latinoamérica dedicado a temáticas de movilidad del futuro, transportación inteligente, infraestructura y logística sustentable, y ha sido creado con el objetivo de ser un catalizador para convertir a Nuevo León en un hub de tecnología para la industria automotriz del país.

Con la reciente noticia de la inversión de Tesla para construir su primera Gigafactory de Latinoamérica en Nuevo León, y la consecuente instalación de sus principales proveedores en la región, se presentó la necesidad de crear una cadena de suministro mucho más sólida en cuanto a capacidad y calidad se refiere.

Ante este contexto, el CLAUT ofrecerá a los proveedores y compradores de la industria, la oportunidad de reunirse y hablar de negocios en el evento Proveedor Automotriz 2023, el cual se realizará en paralelo a Americas´ Mobility of the Future, el 6 y 7 de junio en Cintermex. 

Proveedor Automotriz es organizado desde el 2011 por el organismo en sinergia con la Secretaría de Economía estatal y actualmente es reconocido como el evento de proveeduría automotriz más eficaz de México, siendo una excelente oportunidad para generar nuevos negocios para todas las empresas que desean sumarse a la cadena de suministro automotriz.

Este año, el evento de Proveedor Automotriz contará un área de exposición mayor que cualquier edición anterior y con la premisa de traer a más de 1500 tomadores de decisión de la industria automotriz con casi 500 empresas OEM, Tier 1, Tier 2 y Tier 3.

Miguel Bravo, director del evento y líder de Desarrollo de Proveedores en el Cluster Automotriz de Nuevo León, comentó que la prioridad es llevar a cabo citas de negocio de calidad y para eso han contratado a la empresa finesa Brella, que es uno de los mejores proveedores en el mercado mundial para citas B2B.

“Después de cada evento se realiza un seguimiento detallado de la efectividad de las reuniones B2B y se sabe que dos de cada tres citas avanzan a un RFQ y que una de cada 10 citas de negocio culminan en una orden de compra, lo cual significa que el porcentaje de efectividad es casi del 10%, siendo por mucho el evento de negocios más efectivo realizado en el país”.

Al igual que la edición anterior, este año se contará con el apoyo de la región de Quebec, Canadá, a través de su organismo Invest Quebec, quien estará presente con una delegación de más de 10 proveedores con procesos relacionados a la fabricación del vehículo eléctrico al ser ésta una región potencia en recursos naturales y de investigación para el aluminio y litio.

Source: Elenne Castro, Mexico Industry

In March 2023, Marcelo Ebrard, Minister of Foreign Affairs, went to New Delhi, India, to advance innovative binational projects in the fields of aerospace, lithium, biotechnology, water and vaccines, before opening a Mexican Consulate in Mumbai. An agreement was signed between the Ministry of Foreign Affairs, represented by Ebrard, and the Council of Scientific and Industrial Research (CSIR), represented by Dr.Jitendra Singh, India’s Minister of Science and Technology.

“Both countries will identify priority projects for development, including hydraulic management, electromobility and production of vaccines at low cost. Once the funding is determined, research institutes will be called upon to implement the project,” said Ebrard. The agreement also considers a fund of US$1 million, financed by both countries of US$500,000 each.

Both Mexico and India are part of the G20, which plays an important role in shaping and strengthening global architecture and governance on all major international economic issues. The collaboration between G20 countries on lithium research is a move in the right direction as lithium can help Mexico with its energy transition due to its role in rechargeable batteries for e-vehicles.

In February 2023, the Geological Survey of India (GSI) stated the discovery of 5.9Mt of Lithium deposits in the Salal-Haimana area of Jammu & Kashmir’s Reasi District. During his visit, Ebrard encouraged Sun Mobility, a company known for building energy infrastructure for electric vehicles, to expand into Mexico. The company tweeted, “We had the pleasure of demonstrating our battery swapping solution to @m_ebrard … during his visit to Delhi. It is highly motivating for us to receive such a positive response for our “Made in India” solutions for the world.”

Regarding vaccines, India has been named the “Pharmacy of the World” for not only successfully carrying out the largest vaccination campaign during the COVID-19 pandemic but also for providing vaccines to over 100 countries under its Vaccine Maitri initiative. Both India and Mexico will benefit from this collaboration, as manufacturing becomes more regionalized.

Source: Anmol Notwani, Mexico Business

NUEVO LEON – The Mexican government seeks to create an industrial park for electric batteries (Lithium), alongside Tesla’s gigafactory in Nuevo Leon.

According to Martha Delgado, Undersecretary for Multilateral Affairs and Human Rights of the Ministry of Foreign Affairs (SRE), the park will house different manufacturers, including Elon Musk’s firm.

“The government plan estimates that the battery industrial park will be built in the center of the country, since it is a strategic location,” she added.

This location was chosen to supply the automotive industry plants located in Puebla, Queretaro, State of Mexico and the Bajio region.

The undersecretary highlighted the state of Hidalgo as one of the entities that would benefit from the project. However, according to the Mexican Association of the Automotive Industry (AMIA), Hidalgo does not have any light vehicle manufacturing plants.

It is worth mentioning that recently President Andres Manuel Lopez Obrador noted the possibility of investments in Sonora or Hidalgo related to lithium.

Regarding this, Martha Delgado said that there is an incentive issue that is being discussed with Tesla and that Mexico is reviewing with the Treasury.

“The United States has high subsidies for electric battery factories. For this reason, the Foreign Ministry and the Treasury are working on putting together an “interesting” incentive package in order to allow Tesla to establish itself in the country,” added Martha Delgado.

For his part, Mexico’s Secretary of Finance, Rogelio Ramírez de la O, said that Tesla’s proposal consists of matching U.S. tax incentives under the Inflation Reduction Act (IRA), estimated at US$369 billion for the climate change and electromobility sector.

However, the Mexican government refused to match the tax incentives.


Source: Mexico Now

Tesla plant, high demand boost optimism on Mexican economy
Bank says high interest rates will drag down Brazilian economy


Latin America’s top two economies are moving in opposite directions, with export and investment growth propelling Mexico while Brazil is set to fall into recession, according to JPMorgan Chase & Co.

“Mexico is the silver lining in Latin America as it remains on a strong footing, on the back of resilient external demand, domestic consumption, and the catching up in fixed investment,” JPMorgan economists including Cassiana Fernandez and Gabriel Lozano wrote in a report published Monday.

In contrast, “Brazil, which was one of the first economies to tighten policy, will also be among the first to see a recession,” the economists wrote.

Mexico’s Dec. Fixed Investment Rises Up Most in 15 Months

Analysts became more optimistic about the Mexican economy after Tesla Inc. announced the construction of a new factory in Monterrey, an industrial city near the border with Texas, that’s likely to bring in billions of dollars of investment. Meanwhile, Brazil’s worse-than-expected end to 2022, when the economy shrank 0.2% during the final quarter, raised concerns that high interest rates will be a big drag on growth this year.

The economists don’t see Brazil’s central bank cutting rates “anytime soon,” unless there’s a deeper fall in economic activity.

“Looking ahead, we expect some economic recovery during the year – aided by a more solid external outlook particularly with China re-opening strength – but with growth remaining below potential up until the end of 2024,” they wrote.

On Monday, Mexico’s statistics institute reported that gross fixed investment grew 9.4% in December compared to the previous year, the fastest expansion since Sept. 2021. Shipments of vehicles, one of Mexico’s main exporting products, grew over 14% in February to 230,484 units, the institute said.

Source: Andrew Rosati, Bloomberg 

The need for world-class manufacturing and engineering talent in the automotive sector has reached a fever pitch as automakers, along with Tier 1 and 2 suppliers, gain velocity in delivering on the many promises of electrification. Success requires careful maneuvering around seemingly endless technology, supply chain and production speed bumps.

For that reason, among others, Molex recently opened a factory in Guadalajara, Mexico, to accelerate innovation on behalf of automotive, transportation and industrial customers in North America and globally. While the company’s manufacturing presence in Mexico has grown steadily for more than a half-century, this move is aimed at alleviating complex challenges in vehicle connectivity, electrification, battery management, functional safety and zonal architectures.

By doubling down on a new facility nearly twice as large as its existing Guadalajara footprint, Molex attains ready access to advanced manufacturing capabilities and a diversified pool of highly experienced engineers. This enables us to extend and complement our engineering resources throughout North America, Asia and Europe.

According to the International Trade Administration (ITA), Mexico produces approximately 3 million vehicles annually, with 76% destined for the United States. A long list of automakers has factories throughout the country, including Audi, BMW, Ford, General Motors, Honda, Hyundai, Kia, Mazda, Mercedes Benz, Nissan, Stellantis, Toyota and Volkswagen. Additionally, over 1,100 Tier 1 and several thousand Tier 2 and Tier 3 auto-parts manufacturers and suppliers have operations in Mexico.

Anyone prioritizing Mexico as a labor-arbitrage solution is missing the point. This country clearly has so much to offer. Mexico’s emphasis on STEM education is contributing to a rapid rise in engineering talent. In metro Guadalajara alone, more than 20 universities offer engineering programs focused on electronics, software, renewable-energy technologies and artificial intelligence.

Mexico also offers excellent opportunities for “nearshoring,” which relocates manufacturing closer to final delivery destinations. Trade agreements, such as the U.S.-Mexico-Canada Agreement (USMCA), provide incentives that can lower production costs while strengthening a company’s North American presence.

What stands out, however, is Mexico’s budding reputation as the “Silicon Valley of the South.” In particular, Guadalajara has become a hotbed for innovation, encouraging leading-edge product development and entrepreneurial thinking, along with increased foreign and venture-capital investments. According to Credit Suisse’s Mexico Nearshoring Tracker Second Edition released in October, Volkswagen, Flex Americas, Continental, Bosch and Molex contributed the most to the $2 billion invested during the quarter.

Molex’s decision to expand south of the U.S. border took place well before the pandemic and massive supply chain disruptions that caught many companies off guard. The company’s strategy to invest $130 million in a second factory in Guadalajara emerged from ongoing discussions about broadening supply chains, shortening lead times, localizing production and accessing specialized expertise to spur electrification.

These goals aligned with Molex’s plan to embrace factory-of-the-future capabilities, including production-line automation, advanced materials handling, robotics, cutting-edge molding and assembly, digital twins, artificial intelligence, predictive analytics, machine learning and other data-driven, digital technologies, tools and processes.

Expansion in Guadalajara also enabled the company to apply expertise from working with makers of sophisticated medical devices, high-speed networks and powerful data-center solutions — all critical to developing tomorrow’s electric vehicles, advanced driver-assistance systems (ADAS) and vehicle-to-everything (V2X) communications. We now can readily tap into a region rich with relevant customer experiences, proven engineering talent and overarching commitments to R&D.

Guadalajara has a strong foothold in electronics, medical devices and automotive manufacturing. The biggest EMS players — including Jabil, Flex and Sanmina, among others — have world-class factories here. Many tech titans in software, hardware and digital technologies also have a growing presence, which bodes well for the automotive industry because cars of the future will function more like data centers on wheels.

Equally important is the increase in on-site testing capabilities, such as the reliability and metrology lab Molex is implementing in Guadalajara. The goal is to empower local engineers to improve product designs and speed development cycles using testing, simulations and analyses that reduce rework costs and time. In collaboration with customers and colleagues, Molex is committed to Mexico for the long haul — and excited about discovering new and creative ways to continually add customer value.



The chunks metal being worked on do not look terribly special. But the factory of Aerospace, a chemical-processing firm in Tijuana, hints at Mexico’s importance to global supply chains. These are components, from tray tables to door parts, for aircraft made by companies including Boeing, Cessna and Lockheed Martin. BAP applies surface treatments to the pieces, from submerging them in big vats of chemicals to meticulous work done by hand, before shipping them north.

Mexico has long been a hub for manufacturing. Toyota, a Japanese carmaker, has had a plant in Tijuana since 2002. Honeywell, an American industrial giant, opened one in 2010. But increasingly the country is moving into higher-value processes. It now accounts for 3-4% of aerospace imports to the United States, up from 1.5% in 2010. By contrast China’s share, which was the same as Mexico’s a decade ago, is now just 1%. American sanctions on China and tariffs on Chinese goods explain much of this change, as well as rising wages in China and the difficulty of doing business there. The trend has accelerated recently. Pandemic-induced border closures, increased freight costs, and consumers’ demands for instant gratification have all nudged firms around the world to consider shortening their supply chains.

“This is a golden opportunity for Mexico,” says Helen Wang, a consultant. The country has some natural advantages, not least a long land border with the United States. Mexico is party to fully 23 free-trade deals. Manufacturing wages are lower than in China. A survey this year by the American Chamber of Commerce of Shanghai found that a fifth of its members were considering moving some work out of China; more than a third of those who were thinking of moving were looking to Mexico.

In Tijuana the mood among many Mexican businesspeople is optimistic. Several big firms have expanded recently. Panasonic, a Japanese electronics company, opened a plant in 2018 to make cables for aerospace. Other companies are diversifying into logistics and distribution. In September this year Amazon, an e-commerce giant, opened a warehouse there, though the company denied that it would use it to serve customers in the United States.

In addition to aerospace, the manufacturing of medical devices and other electronics is booming. “We are doing things [in Mexico] that once would have had to be done in Japan or Germany,” boasts Eduardo Salcedo, the manager of the local operations of Össur, an Icelandic medical-devices company. “We have guys running a million-dollar machine with their right hand and another one with their left hand.”

Chain reaction

The result is that the richest part of the country, by the border, is becoming even better off. “Northern Mexico is growing at similar rates to Asia,” says Luis de la Calle, a consultant who used to work at Mexico’s economy ministry. Elsewhere, however, the picture is mixed. FDI fell from 3.1% of GDP in 2018 to 2.3% in 2019, compared with 3.7% in Brazil or 6.2% in Vietnam.

And despite its proximity to the United States, Mexico has its shortcomings. Business parks provide world-class facilities but the infrastructure outside—from roads to ports—is of poor quality, says Mr de la Calle. Businesses complain of problems obtaining inputs. The likes of Panasonic and Össur import many of the materials they need. Similarly Össur nearly pulled out of Tijuana because it could not find a company to apply chemical processes to its products, which include prosthetics. (BAP eventually stepped in.)

Some of the causes of Mexico’s problems are outside its control. When the government of the United States talks about “near-shoring”, it really means onshoring, says Bill Reinsch of CSIS, a think-tank in Washington. It can be protectionist in negotiations with Canada and Mexico. USMCA, the revised trade deal agreed in 2020 between the three countries, is stricter than its predecessor, NAFTA—indeed it was negotiated in part to preserve manufacturing jobs in the United States.

But Andrés Manuel López Obrador, Mexico’s populist president, has not helped. In 2018 his administration replaced one of the most business-friendly (if corrupt) governments in Mexico’s history, that of Enrique Peña Nieto. Mr López Obrador, in contrast, seems to enjoy unnerving investors.

Soon after taking office he cancelled a new airport for Mexico City, after the diggers had been working for three years, at a cost of at least $5bn. In 2020 he also pulled the plug on a $1.4bn investment in a new factory by Constellation Brands, an American brewer, which was near completion. He has weakened independent regulators by absorbing them into government or slashing their budgets.

Mr López Obrador is also reversing his predecessor’s opening of the energy industry to private firms and favouring inefficient state-owned outfits. Along with making electricity dirtier and less reliable, this sends forbidding signals to investors. In November the boss in Mexico of General Motors (GM), an American carmaker, said the company would not invest further in the country without laws that promote renewable energy. Earlier this year GM had said it would invest more than $1bn to make electric cars in Mexico from 2023. Last year Tesla, a leading maker of such cars, considered opening a factory in Mexico but opted instead for Texas. Although Tesla did not explain its reasons, Elon Musk, its boss, has grumbled about the Mexican government’s closure of some of the factories of its suppliers during covid-related lockdowns.

Mexico risks “shooting itself in the foot” by not taking advantage of shorter supply chains, says Michael Camuñez, who started a series of meetings to boost the economic relationship between Mexico and the United States during Barack Obama’s administration. (Mr López Obrador and President Joe Biden relaunched this “economic dialogue” in September.) Unfortunately it is Mr López Obrador who has his finger on the trigger and, if his past treatment of foreign investors is any guide, seems likely to pull it. 

This article appeared in the The Americas section of the print edition under the headline “Missing links” in the economist