Diversifying the sourcing portfolio from China (either nearshoring or offshoring) will help address challenges, whether in supply chain, logistics or availability of raw materials.


China’s supremacy as the global production hub for several industries such as medical devices, electronics, automotive and textile was unchallenged until sometime back. The key factors were easy availability of raw materials, business-friendly laws, technological innovations and access to skilled and cheap labor. However, the scenario changed in 2019 due to increasing cost of labor and the U.S.-China trade war, which tarnished China’s image as a favorable center of production. The Coronavirus disease (COVID-19) pandemic aggravated the situation.

Supply chain disruptions, such as shortage of raw materials due to plant shutdowns in China, increased the cost of manufacturing by pushing labor and shipping costs high and increasing lead times. Plus, amid the growing risk of intellectual property (IP) theft and declining tax incentives, companies either consolidated operations in their home country, expanded existing operations, explored nearshoring activities in Mexico or offshored operations to other Asian countries such as India and Vietnam. Many leading organizations in the mobile and electronics, automotive and medical devices industries have either started implementing their plans to partially shift supply chain to Mexico or are exploring this option followed by India and Vietnam.

Leading automotive, electronics companies shifting supply chain functions or expanding operations in Mexico, followed by India and Vietnam

Shift in supply chain. The shift of supply chain is already underway, as some leading electronics players are exploring Mexico as a production facility.

Following Mexico, India introduced the Production-Incentive Scheme for mobile phone manufacturing and electronics components, including assembly, testing, etc. This factor contributed to attracting some companies to set up manufacturing plants in India.

Vietnam is yet another preferred location for the manufacture of electronics parts.

Expansion of existing facilities. In addition to the shift in supply chain, leading automotive companies are planning to move production to Mexico. End-users, for instance, have already shifted or expanded their manufacturing operations to Mexico.

Electronics companies in Mexico too are keen on increasing their production lines for servers, lighting systems and cognitive services, respectively.

Geographic proximity, low-cost labor, lower logistics expenses and availability of raw materials are the key factors drawing large organizations to Mexico. The country also is taking initiatives to attract investors and increase foreign-direct investment (FDI) in different industries.

Factors supporting investments in Mexico vis-à-vis India and Vietnam

Mexico’s GDP stands at $1,076 billion, of which, $318 billion comes from the industrial sector, followed by the service and agriculture sectors. However, in India, the service sector is the major contributor, accounting for $1,413 billion, followed by the industrial sector at $618 billion. In Vietnam, the service sector is the major contributor to GDP.

The main manufacturing industries in Mexico are mechanical (stamping, smelting, forging, machining, plastic injection, die casting), automotive and electronics that have 77,071, 2,500 and 2,300 companies, respectively; together, they employ more than 2 million people.

The industrial sector in India, with its major sub-sectors such as mining, quarrying, manufacturing, electricity, gas and water supply, accounts for around 26% of the country’s GDP. It employs over 15-20% of the total workforce in India, and mainly caters to the iron and steel, cotton and textile, mechanical (smelting, forging, stamping, machining, die casting plastic injection), automotive and electronics industries.

On the other hand, in Vietnam, state-owned industries such as furniture, plastics, textiles and paper constitute the foundation of the economy. Even sectors like tourism and telecommunications contribute significantly to the economy. In 2020, these industries accounted for 34.5% of the GDP and employed 28% of the total workforce.

Overall, Mexico has a strong supply base that can ensure “just-in-time” delivery to consumers and distributors and provides end-users access to the South American market.

Trade (imports and exports). The United States is the most preferred export destination for Mexico, accounting for approximately 79% of total exports, followed by Canada, China, and others. Export of electronics and automotive components from Mexico to the United States increased over 2019-20, with electronic equipment exports rising 5-10% in this period. Also, in the last three years, by value (in metric tons), the import of automotive products to the United States from Mexico has increased by more than one-third.

Of the total exports from India to the United States, products such as medical appliances, leather goods and textiles account for more than 17%. The United States is also the major export destination for Vietnam.

Note: Trade data includes exports and imports of all products from Mexico, India, and Vietnam for the year 2019 and 2020.

Growth in FDI accompanied by strong government initiatives. In 2020, India was on the list of the Top 10 recipients of FDI, clocking $64 billion, up 27% from that the previous year. Major investment was in the manufacturing industry (18%), followed by service and computer software/hardware. Furthermore, the Indian government has now allowed 100% FDI in contract manufacturing in its bid to boost investments in manufacturing. In Vietnam, FDI decreased by 25% year-over-year to $28.5 billion in 2020; half of the investments were in processing and manufacturing.

FDI inflows to Mexico totaled nearly $30 billion in 2020. The top investing countries were the United States (39%), Canada (15%), and Spain (14%), followed by Japan, Germany, etc. Of the total investments in Mexico, 41% is directed toward the manufacturing sector, concentrated in industries such as aerospace, automotive and electronics. These established industries offer a strong supply chain, existing infrastructure and skilled labor.

Overall, Mexico is a preferred choice for companies looking to maintain competitive manufacturing costs while having regional distribution strategies to control inflation.

Availability of port infrastructure. On the Quality of Ports Infrastructure Index, Mexico ranks 65th, India 51st and Vietnam 85th among 139 countries.

The Indian government has permitted up to 100% FDI on port-related projects and even has a 10-year tax holiday for construction and maintenance of port projects. The government also spent $1.85 billion on infrastructure development at major ports in the country. Due to its geographical location, Vietnam offers easy connectivity with other Southeast Asian countries; this makes it an appropriate hub for manufacturing. Seven major ports dot its 1,900-km coastline, and currently about 400-500 million tons of cargo moves around this line annually.

Mexico has more than 100 major ports on a coastline of 9,330 km, with an annual capacity of nearly 300 million tons. In the last three years, road shipping volume from Mexico to the United States increased by 32%, mostly via Port Laredo in Texas. Inbound ocean freight volumes also increased from Mexico, mainly to Port Newark in New Jersey and Port Everglades in Florida.

Shipping rate from Mexico to the United States is the lowest as compared to from China, India, and Vietnam, which makes Mexico a favorable destination.

Aranca China Plus One Infographic1Aranca

Technology adoption and automation. On the Automation Readiness Index, Mexico ranks 23rd, Vietnam 24th and India 18th. Despite, gross expenditure on R&D (as a % of GDP) is at same levels for all three countries; Mexican industry is planning to accelerate digitalization and automating processes typical of Industry 4.0, which would raise the country’s GDP by 3% points.

The Indian government is finalizing plans to boost digital manufacturing in the country. Many organizations have already taken the initiative and invested in Industry 4.0 Center of Excellence. The Government of India is planning to develop land spanning 461,589 hectares (two times the size of Luxembourg) to invite businesses looking for alternative locations to China. Government-led initiatives such as Rapid Transformation Hub (SAMARTH) and Smart Advanced Manufacturing – Udyog Bharat 4.0 are also aimed at increasing the pace of digitalization.

Vietnam, too, has initiated the adoption of Industry 4.0; however, investments need to come from other countries such as Japan. A few companies, for instance, have undertaken automation-related initiatives in Vietnam, but other domestic companies are still lagging.

Aranca China Plus One Infographic2Aranca

Availability of raw materials. In Vietnam, raw materials are not always available easily and manufacturers in several industries rely on imports to produce goods. In fact, 75-80% of electronics components, 85-90% of pharmaceutical raw materials and 70-80% of textile and plastics raw materials come from China.

Comparatively, India has strong raw material production capacity. The country is the largest manufacturer of cotton and second-largest manufacturer of steel globally. Therefore, availability of raw materials is easy for various industries.

In Mexico, on the other hand, several raw materials produced locally are used in its domestic manufacturing sector; these include metals, minerals, resins, timber, gems, etc. Mexico is among the Top 10 producers of metals such as copper, silver, gold, lead and zinc worldwide. It has a large mining sector. Countries such as the United States, Canada, and several European nations import metals, minerals, ore and gemstones from Mexico. The country has abundant forests with different types of wood and naturally occurring fibers and resins. Companies signed up with the Maquiladora IMMEX program may enjoy the benefits of importing raw materials to Mexican manufacturers and consider sourcing Mexican material supply chains.

Companies believe that diversifying the sourcing portfolio from China (either nearshoring or offshoring) will help address challenges, whether in supply chain, logistics or availability of raw materials. Mexico, India, and Vietnam are undertaking initiatives and implementing policies that will facilitate their emergence as the new hub for manufacturing. From increasing adoption of technology to relaxation of FDI norms and implementation of reforms in land acquisition, the three are locked in a race to win the mantle. However, based on the factors mentioned above, and among the other up-and-coming sourcing hubs, Mexico is steadily catching up with the alternative sourcing giants in the world.




El Bajío cuenta con 157 parques industriales y busca convertirse en un referente para América Latina impulsando el pensamiento creativo en todas las industrias.

En los últimos 20 años, el Bajío mexicano ha mostrado su competitividad en diversas industrias como la aeroespacial, automotriz, biotecnología, investigación y educación, ante esto el proyecto El Gran Bajío, conformado por empresarios e innovadores de Querétaro, Guanajuato, San Luis Potosí, Aguascalientes, Zacatecas y Michoacán buscan posicionar a la región como una de las más importantes en América Latina.

“Y es que así como Silicon Valley impulsó el pensamiento exponencial, los nórdicos un pensamiento colaborativo y los japoneses un método de 5S, el Bajío se está convirtiendo en un referente del pensamiento creativo en Latinoamérica“, declaró Federico Quinzaños, Presidente y Fundador de El Gran Bajío en entrevista para Forbes México.

El proyecto El Gran Bajío busca impulsar un ecosistema de pensamiento e innovación para fortalecer el desarrollo de la región mexicana evolucionando a industrias como: la aeroespacial, farmacéutica, movilidad, energías limpias, tecnología y otras más, de la mano de empresarios, innovadores, ejecutivos de negocios y emprendedores.

“El tema de El Gran Bajío es cómo evolucionar a una nueva era; cómo evolucionar hacia un nuevo panorama de nuevas industrias porque estamos en una nueva era y tenemos que entender cómo hacer una transición de la industria automotriz a la industria de la movilidad; cómo sacar de las tecnologías de las tradicionales a la 2.4; de la aeronáutica a la aeroespacial, así como impulsar las industrias creativas y energías limpias”, añadió Quinzaños.

No te pierdas: Inversión de empresarios en sector turístico es clave para su recuperación

Así mismo el directivo aseguró que si bien El Gran Bajío inició con el apoyo de empresarios ya se le han sumado innovadores, empresas globales, ejecutivos de negocios y startups formando un ecosistema con ejecutivos de todos los niveles e industrias que generen una nueva era para la región.

“Iniciamos con los grandes empresarios de la región pero se nos fueron sumando los innovadores que están facturando arriba de los 15 millones de dólares al año; son sólidos, están exportando y tienen alianzas en el extranjero y patentes. En un tercer nivel están las empresas globales y tenemos más de 4,400 en la región de 80 países que han decidido depositar su inversión aquí en El Bajío: es evidentemente que están viendo algo y la cuarta son los ejecutivos de negocios”.

Federico Quinzaños 2
25 de junio 2021. Foto: © Cortesía El Gran Bajío

Actualmente el Bajío cuenta con 157 parques industriales, 100 centros de investigación, más de 250 universidades, 76 viñedos, industrias consolidadas como la aeronáutica con 90 empresas, 800 firmas relacionadas con la industria automotriz y 12 armadoras de autos.

“El Bajío durante 20 años ha tenido una estrategia muy interesante de posicionamiento enfocada en crear y desarrollar. Se ha destacado contra otras regiones en México porque tiene un pensamiento creativo porque ha pasado de tener una producción y servicios muy básicos a generar industrias como la aeronáutica, automotriz y tecnología. Hoy tenemos 157 parques industriales, 100 centros de investigación, más de 250 universidades y 100 centros de alta especialización”.

Lee: Sectur digitalizará los 132 pueblos mágicos de la mano de Google

El Gran Bajío cuenta con cinco agencias internacionales para conectar proyectos y negocios nacionales con agencias globales, además de tener capacitación y guía por parte de Singularity University

Quinzaños agregó que actualmente Querétaro se ha enfocado en reforzar la industria aeroespacial, mientras que Aguascalientes ha optado por impulsar la industria de movilidad y en tanto, Guanajuato y San Luis Potosí se han centrado en el sector agroindustrial que está transitando hacia la biotecnología.

“Más que el tema de industrias El Gran Bajío tiene que ver con un tema de mentalidad: ¿cuál es la que estamos compartiendo? Hoy estamos impulsando el pensamiento creativo“, destacó Quinzaños.



Por primera vez en los últimos 15 años, la entidad fronteriza se colocó en la cima nacional de atracción de IED durante el segundo trimestre del año en curso.

Durante el segundo trimestre del año en curso, Baja California se colocó por primera vez en los últimos 15 años como el principal receptor del país de Inversión Extranjera Directa (IED).

Ésta es la segunda ocasión que la entidad fronteriza se ubica en primer lugar nacional. La primera vez fue en el periodo julio-septiembre del 2006, cuando captó 328.1 millones de dólares, mientras esta hazaña la logró nuevamente en el lapso abril-junio del 2021, con una atracción de 1,321 millones de capital extranjero, de acuerdo con datos de la Secretaría de Economía.

Además, este último monto representó un crecimiento de 542.1% a tasa anual (el dato del primer trimestre de este año es preliminar; los demás son observados). Lo importante es que de los 1,321 millones de dólares que atrajo de IED Baja California, 81.1% corresponde a nuevas inversiones, situación que manifiesta certidumbre y confianza hacia el estado de los capitales foráneos. Por su parte, 18.1% se refiera a cuentas entre compañías y 0.8%, a reinversión de utilidades.

Por país, 1,240 millones de dólares provino de Estados Unidos, 495.1% más que en el segundo trimestre del 2020, lo que se traduce en la materialización de la economía binacional con California; el segundo lugar fue para Corea con 63 millones, que significó un incremento anual de 160.3 por ciento.

En tanto, la rama económica que dio este impulso positivo para la entidad de la frontera norte de México fue transporte de gas natural por ductos, con 1,006 millones de dólares de inversión. Otros resultados importantes se observaron en fabricación de productos de plástico (39 millones); fabricación de instrumentos de medición, control, navegación y equipo médico electrónico (25 millones); fabricación de aparatos eléctricos de uso doméstico (24 millones) y fabricación de automóviles y camiones (20 millones).

La política estatal de atracción de inversión extranjera se reflejó en la creación de empleos formales, ya que Baja California fue el mayor generador con 65,203 plazas laborales entre julio del 2021 y febrero del 2020 (nivel prepandemia), según información del Instituto Mexicano del Seguro Social (IMSS).

Asimismo, la primera entidad en superar los estragos que trajo consigo el Covid-19 en el mercado laboral fue Baja California, en agosto del 2020, con 3,790 nuevos puestos asegurados en el IMSS, respecto a febrero del mismo año, y considerando que al inicio de junio terminó la jornada nacional de sana distancia para evitar la propagación del virus (abril y mayo fueron de total confinamiento y paro de actividades no esenciales).

Los otros

Tras Baja California, los mayores receptores de IED en el segundo trimestre del presente año fueron Ciudad de México (953 millones de dólares), Chihuahua (533 millones), Coahuila (481 millones), Sonora (420 millones) y Zacatecas (400 millones). Mientras los menores montos fueron en Guanajuato (17 millones), Yucatán (16 millones) e Hidalgo (15 millones).

Sobresale que cuatro estados mostraron saldos negativos: Colima (-3 millones de dólares), Chiapas (-6 millones), Oaxaca (-49 millones) y Veracruz (-142 millones).

En el caso veracruzano, la merma provino de cuentas entre compañías (-216 millones de dólares), cuyo flujo negativo se debe a préstamos de las filiales a las matrices en el exterior y/o adelantos de pagos a filiales a sus matrices. Los saldos positivos fueron en reinversión de utilidades (19 millones) y nuevas inversiones (56 millones).


Por variación anual, 12 entidades presentaron incrementos, 13 redujeron su ritmo de captación de IED en el segundo trimestre del 2021, tres repuntaron (Aguascalientes, Morelos y Tamaulipas) y cuatro tuvieron saldos negativos, cuando un año antes eran positivos (no se pueden realizar tasas de crecimientos entre cifras negativas y positivas).

Los mayores aumentos en atracción de inversión extranjera fueron en Zacatecas, con 1,467.4% (pasó de 26 millones de dólares en el segundo trimestre del 2020 a 400 millones en igual periodo del 2021); Guerrero, con 573.3% (de 19 a 131 millones); Baja California, con 542.1% (de 206 a 1,321 millones); Yucatán, con 489.3% (de 3 a 16 millones), y Chihuahua, con 143.7% (de 219 a 533 millones).

Al otro extremo, las caídas más pronunciadas fueron en Tlaxcala, con -91.8% (de 250 a 21 millones de dólares); Guanajuato, con -93.2% (de 252 a 17 millones), y San Luis Potosí, con -93.8% (de 610 a 38 millones).

Es importante recalcar que los montos de IED en el segundo trimestre del 2020 fueron bajos por los estragos en el mundo que ocasionó el Covid-19.

Primera mitad del año

En el primer semestre del año, la entidad con mayor recepción de IED fue Ciudad de México (3,270 millones de dólares); de este monto, considerando los porcentajes más elevados por apartado, 57.7% perteneció a reinversión de utilidades, 33.4% provino de Estados Unidos y 22.0% se dirigió a banca múltiple.

Atrás de la capital del país se posicionaron Baja California (1,626 millones de dólares), Nuevo León (1,455 millones), Chihuahua (1,049 millones) y Guanajuato (1,016 millones). Mientras los montos más bajos se dieron en Hidalgo (66 millones), Yucatán (40 millones) y Colima (26 millones).

En el acumulado de la primera mitad del 2021, ningún estado exhibió saldos negativos de IED, por lo que en comparativo anual, 13 mostraron alzas anuales y 19, descensos. Los mayores aumentos fueron en Zacatecas (1,181.6), Michoacán (287.0%), Sonora (133.8%), Guanajuato (86.1%) y Quintana Roo (84.9 por ciento).

Sobre las entidades con los desplomes más pronunciados, es decir, que captaron menos inversión respecto a los primeros seis meses del 2020, sobresalen Sinaloa (-75.6%), Tlaxcala (-78.3%) y Nayarit (-81.6 por ciento).






Port of Manzanillo, Colima — China imports into Mexico have seen a significant increase over the past year due to a global mismatch of supply and demand due to the pandemic. Those involved in the container shipping business say containers from Asia at the Port of Manzanillo have reached levels not seen in the last decade.

Manzanillo is the main port in the reception of goods from Asian factories, but last year, the arrival of containers (TEUs) shot up to 2.9 million, equivalent to 45 percent of the 6.5 million received in total in the country, said Héctor Ayala, Ferromex intermodal manager. He says the increase is a result of the instability of supply and demand for imported items caused by the pandemic.

In 2019, the port received just over 1.5 million TEUs of China imports into Mexico, according to data from the Ministry of Communications and Transportation (SCT). Between January and February of this year alone, the port saw 282,000 containers, 11.6 percent more than in that same two-month period in 2020.

“These are records that have not been seen for at least 10 years in terms of container volume in Manzanillo. It is a totally atypical situation,” said Ayala.

“Industrial production in Asian countries was reduced at the beginning of the pandemic, but when activity resumed, ports opened and maritime travel restarted, there was a greater than usual flow of containers,” Ayala added.

When Mexico decreed that only essential activities would remain open from April, Asia was already recovering from the blow of the health crisis, so all the purchase orders that had been placed in Mexico in February and March began to arrive in April and May, explained Luis Aguirre Lang, president of export company Index.

It is estimated that what began as an effect of the health situation will become a trend, and that the number of containers received in Manzanillo may break the 3.8 million barrier during 2021.

Due to the growing flow of cargo arriving in Manzanillo, federal authorities have made investments in the port to expand maneuvering capacity and railway companies plan to carry out a broader and faster evacuation of cargo, since for now, they continue to be overrun.

Ferromex and its clients, shipping companies and customs agencies, as well as the Manzanillo Port authorities, predict that the high volumes operated by the port will be the constant from now on, Ayala said.

“Today (the containers) are on the floor of the port, waiting to be moved by the motor transport or the railroad. The area of opportunity is in the moving of containers,” Ayala pointed out. “That challenges Grupo México Transportes to have the resources and make the necessary efforts to meet this volume demand that has materialized in the port, and we are betting that it is a constant flow that we have to mobilize,” he said.

About 60 percent of the cargo that Ferromex moves from Manzanillo are non-food consumer products that reaches the shelves of self-service and convenience stores across Mexico. Ayala said these products change with the seasons and holidays such as Day of the Dead, Easter, Christmas and even summer vacation periods.

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