🗓️ April 30, 2025. MexicoCRE - MexicoFDI Newsletter Edition

📖 From the Editor

As Mexico continues to cement its position as a global manufacturing powerhouse, the first quarter of 2025 has delivered remarkable achievements across multiple sectors. With record-breaking export figures, strategic industrial expansions, and transformative infrastructure projects, the country demonstrates remarkable resilience in navigating the current circumstances.

💲FDI

In 2024, Mexico saw foreign direct investment (FDI) reach $36.872 billion, representing a 1.1% increase compared to 2023. Nearshoring, the relocation of production chains to nearby countries, continues to drive FDI inflows, particularly in sectors like semiconductors, automotive, and electrical equipment. Key Points.

• FDI Total:

  $36.872 billion in 2024, a 1.1% increase from 2023.

• Nearshoring:

  A major driver of FDI, especially in sectors like semiconductors, automotive, and electrical equipment.

• USMCA and Proximity:

  Mexico's proximity to the US and the USMCA agreement make it an attractive location for nearshoring.

• Incentives:

  Mexico has implemented new tax incentives to encourage nearshoring and attract foreign investment.

🌎 Export Sector Achieves Historic Milestone

Mexico's export sector has demonstrated exceptional resilience, reaching unprecedented heights in March 2025. Total exports hit a record $55.52 billion, marking a substantial 9.6% increase compared to March 2024. The manufacturing sector led this growth, contributing 90% of March's export revenue, with non-auto manufactured products showing a remarkable 10.7% increase. Key Statistics:

• Q1 2025 export revenues: $149.25 billion (4% YoY increase)

• Manufacturing exports in Q1: $134 billion (5.5% YoY increase)

• March 2025 trade surplus: $3.44 billion (72.8% YoY increase)

🏭 Major Industrial Expansions Signal Growing Confidence

The industrial landscape is witnessing significant expansion as both domestic and international companies strengthen their presence across Mexico:

DHL's Strategic Growth in Jalisco DHL Supply Chain Mexico's new logistics center in Jalisco marks a significant expansion of the company's capabilities, reinforcing Mexico's position as a key logistics hub in Latin America.

Automotive Sector Momentum

• San Luis Dasung's operational expansion in San Luis Potosí

• PROMA's new plant establishment in Aguascalientes

• Yokohama's plant construction progress in Coahuila

These developments are particularly significant as Mexico emerges as a refuge for automotive supply chains, benefiting from USMCA tariff exemptions that protect against the newly announced 25% U.S. tariffs on auto imports.

✈️ Aerospace Sector Soars to New Heights

Mexico's aerospace industry continues its impressive trajectory, positioning the country among the world's top 12 aerospace players. The sector now powers more than 29% of the country's total exports and contributes 3.5% to GDP. The FAMEX 2025 Aerospace Fair showcased this success, attracting 337 companies from 48 countries.

Industry Highlights:

• Current valuation: $11.2 billion USD

• Projected to double by 2029

• Expected exports: Over $10 billion USD in 2024

• 386 manufacturing companies across 19 states

🛍️ Retail Sector Transformation

Major retail players are adapting to changing market dynamics:

KFC's Ambitious Expansion

• $75 million investment in infrastructure and expansion

• Current presence: 570 locations

• Target: 600 stores by year-end

• Part of 2,000 LATAM locations generating $2.5 billion annually

Oxxo's Growth Despite Challenges Despite a 1.8% decrease in same-store sales, Oxxo continues its aggressive expansion with 361 new stores opened in the last quarter, approaching the milestone of 25,000 locations.

🛤️ Infrastructure Development Drives Connectivity

The inauguration of the Querétaro-Mexico City train represents a significant leap forward in Mexico's transportation infrastructure, enhancing regional connectivity and economic integration. This development comes at a crucial time as Mexico works to improve its logistics capabilities, addressing its position in the World Bank's Logistics Performance Index.

🔎🌎 Looking Ahead

Mexico's industrial landscape is poised for continued growth, driven by nearshoring trends and strategic advantages in manufacturing. The country's resilience in navigating global trade challenges, coupled with significant infrastructure investments, suggests a promising future for investors and businesses alike.

Key factors to watch:

• Implementation of new USMCA provisions

• Development of regional manufacturing hubs

• Progress in digital transformation initiatives

• Evolution of nearshoring trends post-2024

☎️ CONTACT US

As Mexico's industrial renaissance gains momentum, now is the time to explore investment opportunities across its diverse sectors. Whether in manufacturing, aerospace, or retail, the country offers unique advantages for businesses looking to expand their North American presence. For more information on specific investment opportunities or to discuss market entry strategies, please contact our team.

Thank you for reading our edition of the MexicoCRE Newsletter. Stay tuned for more updates and investment opportunities! 🙏