Business Trends

Five Reasons to Consider Mexico for Logistics, by Jones Lang LaSalle

File Type: Free Content, Article
Release Date: January 2013
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Cargo ship

According to Jones Lang LaSalle (JLL), Mexico is an increasingly attractive supply chain location when looking to access the United States and elsewhere.  Improving supply chain infrastructure and growth in truck shipping are two of the five reasons Mexico provides industrial opportunities.

Five reasons to consider Mexico for cross-border industrial opportunities:

  • Mexico is not China — JLL estimates that decreasing low-cost labor, a growing middle class and increasing land and energy prices are escalating the cost of manufacturing in China by 15 to 20 percent per year.
  • Mexico is no Afghanistan either — Though the drug-related violence in Mexico is real, it is important to realize that Mexico City and most of the fastest growing manufacturing and logistics centers are not strongly affected by drug cartel violence.
  • Mexico has a low-cost, increasingly skilled workforce — As labor costs improve against world competition, so do the abundance and quality of the workforce.  Mexican working-age individuals are becoming more affluent and well-educated.
  • Ever-improving supply chain infrastructure magnifies its geographic advantage — Rail traffic is on the rise and nine ocean carriers now use the Port of Lazaro Cardenas.  The Mexican government is also working to improve major truck highways and reduce bottlenecks at border crossings.
  • Eager business partner  — Mexico has free trade agreements with 43 nations, a corporate tax rate of 30 percent and has made gains in operational transparency.