The nearshoring wave accelerating in Mexico has not affected all states equally. A handful of states are capturing a disproportionate share of the investment — and understanding why reveals important signals for companies evaluating where to locate their Mexico operations.
The Leaders
Nuevo León (Monterrey)
Mexico’s most established industrial hub. Its proximity to the Laredo border crossing makes it the natural choice for companies needing short supply chains to US customers. Main challenge: land and labor costs have risen significantly.
Querétaro
Arguably the most dynamic nearshoring destination over the past five years — combining central location, excellent connectivity, a diversified industrial base and one of Mexico’s strongest labor markets for technical professionals.
Guanajuato
Mexico’s automotive manufacturing capital. Home to BMW, Honda, Mazda and General Motors, plus one of the densest Tier 1 and Tier 2 supplier concentrations in Latin America.
Baja California (Tijuana / Mexicali)
Unmatched proximity to the US market — same-day truck delivery to Los Angeles and San Diego. Long maquiladora history now attracting advanced manufacturing in medical devices, electronics and aerospace.
The Rising States
San Luis Potosí
Sitting at the intersection of Mexico’s major logistics corridors, with BMW’s largest plant outside Germany. Growing as an alternative to more saturated Bajío markets with competitive land costs.
Sonora (Hermosillo)
Emerging rapidly — driven by Ford’s major plant and strategic position relative to Arizona and the US Southwest.
Jalisco (Guadalajara)
Mexico’s technology hub — home to IBM, Intel, HP, Oracle and hundreds of software and IT firms. The primary destination for technology companies entering Mexico.
Choosing the Right State
Key factors: proximity to US customers or border crossings, industrial park availability and costs, CFE electricity capacity and timelines, labor availability and wage levels, state-level incentives and quality of life for executive relocation.
Need a location recommendation? Contact Entering Mexico for a strategic overview.