If you follow the nearshoring conversation in Mexico, one region comes up more than any other: the Bajío. Stretching across Querétaro, Guanajuato, Aguascalientes and San Luis Potosí, the Bajío has become the most dynamic manufacturing and industrial investment destination in the country — and one of the most competitive in all of Latin America.

Why Is the Bajío Leading Mexico’s Nearshoring Boom?

Strategic location

The Bajío sits at the geographic center of Mexico — within 4 to 6 hours by road of Mexico City, Monterrey and the main US border crossings. This central position makes it ideal for companies serving multiple markets simultaneously or maintaining efficient North American supply chains.

World-class infrastructure

The region is served by several international airports, a dense highway network and direct rail connections to the US border. The Intermodal Port of Guanajuato and the logistics infrastructure in San Luis Potosí provide multimodal freight capabilities few Mexican regions can match.

Established industrial ecosystem

The Bajío hosts one of the most mature industrial ecosystems in Mexico — with dozens of established industrial parks and decades of experience with international manufacturing. BMW, Volkswagen, Honda, General Motors, Mazda, Bombardier and hundreds of their suppliers all operate in the region.

Which State Is Right for Your Operation?

Querétaro

The most diversified industrial economy in the Bajío — strong clusters in aerospace, automotive, food & beverage, logistics and technology. One of the lowest crime rates in Mexico and high quality of life. Industrial park availability has tightened significantly since 2022.

Guanajuato

Mexico’s automotive heartland — home to BMW, Honda, Mazda and General Motors. Silao and Irapuato are key industrial zones alongside León.

San Luis Potosí

Strong logistics advantages at the intersection of Mexico’s major highway corridors. BMW has a major plant in the state and land costs remain competitive relative to Querétaro and Guanajuato.

Key Challenges to Factor In

• CFE electricity supply: Industrial electricity connections can take 12 to 24 months in some parts of the Bajío — one of the most critical bottlenecks for manufacturing operations.
• Industrial park availability: Vacancy rates in prime corridors have dropped below 2% in some areas. Early commitment is essential.
• Water availability: Some zones face water scarcity — increasingly relevant for food, beverage and semiconductor operations.

Evaluating a presence in the Bajío? Contact Entering Mexico for a strategic location overview.

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.

Mexico attracted over $36 billion in nearshoring investment in 2025. The easy wave is over. Companies entering now face a more competitive market — with tighter industrial park availability, rising labor costs in key corridors and buyers experienced enough to distinguish between a well-structured entry and a rushed one.

That does not mean the opportunity is gone. It means the bar has risen. Companies that enter Mexico now with a clear trade framework, the right customs regime and a well-coordinated operational setup will capture real competitive advantage.

What Has Changed Since 2022

• Industrial park vacancy: In prime corridors like Querétaro and Nuevo León, industrial vacancy rates have dropped below 2%. Companies not actively in the market for space are losing options to faster-moving competitors.
• Labor costs: Wages in high-demand manufacturing corridors have increased significantly. The labor cost advantage that made Mexico compelling in 2018 is narrower today.
• CFE bottleneck: Electricity connection timelines for industrial operations have extended to 12 to 24 months in some regions.
• Customs and trade complexity: As more companies import components and export finished goods through Mexico, customs compliance has become more scrutinized.

What Has Not Changed

Mexico’s fundamental advantages remain intact. Trade agreement frameworks provide access to the US and Canadian markets. Mexico’s geographic position — sharing a 3,145 km border with the United States — cannot be replicated. The manufacturing talent base continues to deepen.

What Companies Entering Now Should Do Differently

• Start earlier: Site selection, CFE applications and bank account opening all take longer than most companies expect. Starting 6 to 12 months before the intended operational date is now the minimum.
• Get the trade structure right from day one: Choosing the wrong customs regime creates costs and compliance burdens that are difficult and expensive to reverse.
• Coordinate specialists from the start: Legal, tax, customs and real estate decisions are interconnected. Making them in sequence rather than in parallel leads to conflicts that are costly to resolve later.

The window is not closed. But it is narrower — and the companies that enter with a clear structure and proper coordination will have a significant advantage over those that improvise.

Entering Mexico now? Contact Entering Mexico for a structured approach.

Many companies evaluate manufacturing in Mexico purely as a cost arbitrage play — lower labor costs, proximity to the US border, reduced freight expenses. Those are real benefits. But companies that limit their analysis to cost miss the deeper strategic advantages that manufacturing in Mexico provides — advantages that compound over time and are increasingly difficult for competitors to replicate.

1. Tariff-Free Access to the Largest Consumer Market in the World

Mexico’s trade agreement framework provides preferential — effectively tariff-free — access to the United States and Canada for qualifying manufactured goods. The United States alone represents a GDP of over $27 trillion USD. For any company that sells to North American buyers, manufacturing in Mexico eliminates a cost structure that competitors manufacturing in Asia or Europe must absorb.

2. Supply Chain Proximity and Resilience

From Monterrey to Laredo is 2.5 hours by truck. From Querétaro to the US border is a day’s drive. From Tijuana to San Diego is 30 minutes. These distances allow for just-in-time delivery, rapid response to demand changes and a level of supply chain flexibility that manufacturing in Asia simply cannot provide.

3. Access to Specialized Industrial Talent

Mexico produces approximately 1,700 engineering graduates per year. In key manufacturing corridors like the Bajío, Monterrey and Baja California, decades of industrial development have created deep pools of specialized technical talent in automotive, aerospace, electronics and medical device manufacturing.

4. Cost Structure Advantages Beyond Labor

• Energy costs: Industrial electricity rates in Mexico remain competitive relative to the United States and Europe for most manufacturing applications.
• Real estate costs: Industrial space in Mexico’s manufacturing corridors is significantly less expensive than comparable space in the United States — typically 20% to 40% of US equivalents.
• Total landed cost: When freight, tariffs, inventory carrying costs and supply chain risk are factored in, the total landed cost advantage is frequently larger than the labor cost differential alone.

5. IMMEX and PROSEC — Structural Tax Advantages

Companies that manufacture in Mexico and export their production can access significant tax advantages through the IMMEX program — which allows the temporary importation of raw materials, components and equipment without paying import duties or value-added tax. Similarly, the PROSEC program provides reduced tariff rates on specific inputs for companies operating in covered manufacturing sectors.

6. A Platform for Regional Expansion

Mexico has free trade agreements with the European Union, Japan, Israel, Chile, Colombia, Peru and dozens of other countries. A manufacturing operation established in Mexico to serve the North American market can also serve as an export platform to these other markets.

The companies that capture the full value of manufacturing in Mexico are those that treat the trade structure — customs regime, tariff classification, trade agreement compliance — as a strategic decision, not an afterthought.

Want to understand the full benefits of manufacturing in Mexico? Contact Entering Mexico.