“U.S. entrepreneurs remain very interested in Mexico’s nearshoring potential for 2025,” said Tatyana Skumatenko, branch manager at Wise Pan American Solutions. (Photo: Jim Allen/FreightWaves)
Borderlands is a weekly summary of global trends in trucking and trade across the U.S.-Mexico border. This week: Entrepreneurs and small businesses realize the value of investing in Mexico. Automotive supplier plans third factory in Mexico. A cargo ship makes its first call at the Port of Houston. $31 million worth of meth was found hidden in a shipment of chili peppers.
Business owners continue to see Mexico as a positive place to invest in manufacturing opportunities, said Tatyana Skumatenko, branch manager at Wise Pan American Solutions (WPS).
Based in Austin, Texas, WPS provides services designed to assist companies looking to expand or establish cross-border operations in Mexico.
“U.S. entrepreneurs remain keenly interested in Mexico’s nearshoring potential into 2025, and the country’s strategic focus remains strong given both ongoing challenges and emerging political uncertainties. We are carefully weighing the advantages,” Skumatenko, who oversees WPS business development between the U.S. and Mexico, told Freightwave.
Skumatenko recently attended the Austin Small Business Expo, an event that brings together entrepreneurs and small business owners from across the Lone Star State.
“When I attended the recent Small Business Expo in Austin, I noticed that small business owners were interested in working with Mexico, especially in sourcing raw materials, raw materials, and products,” Skumatenko said. said.
“I think the general sentiment regarding nearshoring in Mexico remains cautiously optimistic. While the review of the Mexico-Canada Agreement (USMCA) raises concerns, Mexico also faces water shortages, limited energy supplies, and infrastructure problems even before the election.
U.S.-Mexico trade totaled $72.5 billion in September, an 8% increase from the same month a year ago, according to the latest data from the Census Bureau.
Mexico has been No. 1 in trade with the United States for 19 of the past 20 months and nine consecutive months.
In terms of trade with the US in September, Canada ranked second with $63.8 billion, and China ranked third with $54.3 billion.
Through the first eight months of this year, total trade between the United States and Mexico reached $632 billion. Trade with Canada was $632 billion and trade with China was $437 billion.
In September, the Port of Los Angeles surpassed Laredo, Texas, as the No. 1 gateway for U.S. trade out of 450 airports, seaports and border crossings, according to Census Bureau data analyzed by WorldCity. Ta.
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The top three exports from Mexico to the United States via Laredo in the same month were auto parts ($2.3 billion), computers ($1.9 billion), and passenger cars ($1.58 million).
The top imports from the United States to Mexico in September were auto parts ($1.1 billion), storage batteries ($449 million), and passenger cars ($317 million).
According to the SONAR Outbound Tender Volume Index (OTVI.LRD), as of November 21, outbound truck volume from Laredo has increased significantly compared to the same period in 2023 and 2022.
SONAR’s Laredo, Texas Outbound Bid Volume Index (OTVI.LRD) shows that trucking volume (blue line) in 2024 is trending upward compared to the past two years. Click here to learn more about SONAR.
Skumatenko said the momentum nearshoring gained in 2024 is unlikely to decline dramatically next year.
“Those who recognize and appreciate Mexico’s advantages as a nearshoring destination are willing to assume these risks and establish operations south of the border. “We expect about 450 new companies to expand into Mexico by the end of the year,” Skumatenko said.
German-based auto parts manufacturer Mvea plans to open a third factory in Ramos Arizpe, Mexico.
The $60 million factory will create 200 direct jobs and produce auto chassis parts for the North American market. The 2.2 million square foot facility is expected to open by the end of 2025.
“This new location marks an exciting expansion for Mvea and reinforces our commitment to innovation and excellence in automotive components,” said James Sheehan, CEO of Mvea North America, according to Pro Mexico Industrie. It will strengthen the
Mubea is a global manufacturer of automotive parts. The company employs more than 17,000 people at 54 locations in 18 countries.
The Saudi-flagged multipurpose dry cargo ship Bari Diriyah recently arrived at Port Houston’s Turning Basin Terminal.
The ship headed to Houston from Dammam, Saudi Arabia.
The 31,241-ton vessel can carry up to 1.3 million cubic feet of general cargo. The Bari Diriyah will operate as a tramp, calling at Port Houston as needed to provide cargo solutions to the Texas trade community, Bari officials said.
“Houston is one of our largest markets, and this milestone highlights our strong partnership with Port Houston,” Bari Line Vice President Rajit Aikala said in a news release.
Bari, headquartered in Riyadh, Saudi Arabia, is Saudi Arabia’s national transportation company. Bari is the world’s largest owner and operator of very large crude carriers (VLCCs) and chemical tankers, according to its website. The airline operates 40 VLCCs.
U.S. Customs and Border Protection (CBP) officers in South Texas recently seized $31.2 million worth of methamphetamine hidden in a shipment of serrano peppers arriving from Mexico.
The incident occurred on November 10th at the Farr-Reynosa International Bridge in Farr, Texas. CBP officers discovered 1,859 packages containing suspected methamphetamine hidden inside peppers loaded on a tractor-trailer.
CBP seized the drugs and trailer. The Department of Homeland Security is investigating the incident.
The article Borderlands Mexico: Entrepreneurs, small businesses realize the value of investing in Mexico appeared first on FreightWaves.
