Prodensa Weekly Manufacturing Report Mexico October 29 2025
GENERAL SITUATION IN MEXICO
Weekly Review I October 29, 2025
US - MEXICO PRESIDENTIAL NEWS
USMCA Negotiation Processes
• During his appearance before the Mexican Congress’s Political Coordination Board, Secretary of Economy Marcelo Ebrard reported that Mexico and the United States have held 85 meetings on tariffs and the upcoming USMCA review, with negotiations now 90% complete.
• Over the past days, the Secretary of Economy organized sectoral meetings to build a broad national stance ahead of the 2026 USMCA review, across different states.
• These discussions included representatives from the private sector and labor organizations, marking the first time that the labor movement has been formally consulted in this process.
• Overall, the sectoral meeting are viewed as a proactive step by the federal government to incorporate diverse perspectives into Mexico’s position, reinforcing national unity and credibility in trilateral talks.
• Also, as part of the efforts to build confidence with U.S. counterparts before formal USMCA talks begin in 2026, representatives from Mexico’s Business Coordinating Council (CCE) and the Business Advisory Council (CADERR), led by Francisco Cervantes and Altagracia Gómez, respectively, met with U.S. officials, legislators, business organizations, and labor unions in Washington, D.C., from October 20th to 22nd.
• The meetings aimed to highlight the complementarity between the Mexican and U.S. economies and to present a unified message from the Mexican private sector ahead of the 2026 review of the United States-Mexico-Canada Agreement (USMCA).
SOURCES: MILENIO
US - MEXICO PRESIDENTIAL NEWS
Foreign Trade and Tariffs
• President Donald Trump signed a proclamation imposing new 25% tariffs on imports of trucks and components such as engines and transmissions, and a 10% tariff on buses, effective November 1st. While the measure includes a system of discounts for Mexico and Canada, under the USMCA, the tariff will only apply to the non-U.S. content value.
• For Mexico, the move is particularly relevant, as the country is currently the US’s top truck exporter.
• Also, U.S. President Donald Trump announced the suspension of trade negotiations with Canada, in response to a campaign ad released by Ontario’s government that used a 1987 Ronald Reagan speech criticizing tariffs without authorization. The move further strains a relationship already burdened by high U.S. tariffs on Canadian exports.
• Nonetheless, the suspension is unlikely to be permanent, as both sides face pressure to stabilize North American supply chains ahead of the 2026 USMCA review, but the episode adds new uncertainty to the regional trade outlook.
SOURCE: CNN
Security Cooperation
• These discussions are closely tied to bilateral security cooperation, as Mexico’s compliance with U.S. security commitments mandated by President Trump are related to the reduction or suspension of new tariffs on Mexican exports.
• Ebrard confirmed that talks will continue this week in South Korea on the sidelines of the APEC Leaders’ Summit, coinciding with the end of the 90day deadline set by Washington.
• Optimism in this regard was confirmed by Foreign Trade Undersecretary Luis Rosendo Gutiérrez, who announced that both countries will present new agreements in early November covering security, fentanyl control, migration, and trade.
• President Trump has expressed satisfaction with Mexico’s efforts to tackle insecurity and drug trafficking, signaling that both governments are eager to frame the negotiations as a joint success ahead of the 2026 USMCA review.
SOURCES: EL ECONOMISTA
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• BILL WITH DRAFT DECREE ADDING A SECTION XXXIV TO ARTICLE 132 OF THE FEDERAL LABOR LAW REGARDING PAID LEAVE FOR PET CARE
Presented by: Senator Sasil Dora Luz De León (MORENA)
Objective: To establish an employer obligation to grant employees, upon justification, up to two paid working days per year for urgent pet care.
Status: 2025-10-22 – Published in the Parliamentary Gazette
• BILL WITH DRAFT DECREE AMENDING ARTICLES 132 AND 994 OF THE FEDERAL LABOR LAW REGARDING MENSTRUAL HEALTH
Presented by: Senator Imelda Margarita Sanmiguel (PAN)
Objective: To require employers to grant women menstrual leave without affecting labor rights: up to two working days per month upon request, or up to five with medical certification.
Status: 2025-10-21 – Published in the Parliamentary Gazette
LEGISLATIVE CHANGES AND INITIATIVES
PUBLIC ADMINISTRATION
• GUIDELINES FOR THE IMPLEMENTATION OF THE NATIONAL MODEL TO ELIMINATE BUREAUCRATIC PROCEDURES
Presented by: Digital Transformation and Telecommunications Agency
Objective: To reduce bureaucracy, streamline administrative processes, and facilitate individuals’ access to rights and compliance with legal obligations through more efficient, transparent, and user-centered digital mechanisms.
Status: 2025-10-23 – Published in the Official Gazette of the Federation
• BILL WITH DRAFT DECREE ISSUING THE GENERAL LAW TO PREVENT, INVESTIGATE, AND SANCTION CRIMES OF EXTORTION AND AMENDING VARIOUS FEDERAL LAWS
Presented by: Federal Executive
Objective: To establish a unified legal framework to combat extortion through standardized definitions, jurisdictional rules, and penalties. The bill provides for official investigation, coordination among authorities, and stricter sanctions.
Status: 2025-10-20 – Published in the Parliamentary Gazette
• BILL WITH DRAFT DECREE ISSUING THE LAW ON MIXED INVESTMENTS FOR WELLBEING, AND AMENDING VARIOUS PROVISIONS OF THE FEDERAL BUDGET AND FISCAL RESPONSIBILITY LAW, AND THE FINANCIAL DISCIPLINE LAW OF FEDERAL ENTITIES AND MUNICIPALITIES
Objective: To regulate and promote long-term mixed investment projects between the public and private sectors aimed at improving social welfare, transparency, and regional development. The law seeks to replace the Public-Private Partnerships Law, establish oversight mechanisms, and create a digital platform for transparency in federal mixed investment projects.
Status: 2025-10-28 – Published in the Parliamentary Gazette.
LEGISLATIVE CHANGES AND INITIATIVES
TRADE
• FIFTH RESOLUTION OF AMENDMENTS TO THE GENERAL RULES OF FOREIGN TRADE FOR 2025 AND ANNEXES 1, 2, AND 5
Presented by: Secretary of Finance and Public Credit
Objective: To disclose amendments regarding suspension causes in registries, authorizations, and extensions for the import and export of goods, including temporary imports for the 2026 FIFA World Cup. It updates requirements, conditions, and annexes for maintaining or cancelling permits related to hydrocarbons, petroleum products, petrochemicals, and sulfur.
Status: 2025-10-21 Published in the Official Gazette of the Federation.
• BILL WITH DRAFT DECREE AMENDING, ADDING, AND REPEALING VARIOUS PROVISIONS OF THE CUSTOMS LAW
Presented by: Senate
Objective: To modernize the customs legal framework to strengthen tax collection, combat evasion, and enhance foreign trade competitiveness. The decree takes effect on January 1, 2026.
Status: 2025-10-21 – Approved, sent to the Federal Executive (PUBLICATION IS PENDING)
NEWS BY STATE
BAJA CALIFORNIA
At BAJAMAK 2025, Adriana Eguía Alaniz, President of DEITAC, highlighted Tijuana’s industrial transformation amid global supply chain disruptions, post-pandemic shifts, and U.S.–Mexico trade dynamics. She emphasized DEITAC’s role in attracting investment, fostering suppliers, and strengthening local value chains. Despite global challenges, Baja California’s manufacturing sector remains strong and poised for growth. Eguía outlined key business opportunities and projected 2026 as a year of increased dynamism and new industrial prospects, especially for adaptable companies. The event brought together leaders and experts to reinforce regional competitiveness and position Baja California as an industrial innovation hub.
SOURCE: INDUSTRIAL NEWS BC
SONORA
Sonora is launching its first locally made electric vehicle through the Beyond Movilidad Compartida (BMC) project, a collaboration between local entrepreneurs and academic institutions aimed at creating EVs and batteries with regional components and talent. The initiative seeks to establish a fully integrated “360” automaker, from battery cell production to vehicle assembly, while fostering a local industrial ecosystem with long-term supplier partnerships. The EV will be modular and adaptable, serving passenger or cargo needs, with initial prototypes using imported lithium cells but planning to transition to fully local production. BMC aims to present a showcar in early 2026, a functional prototype by year-end, and reach large-scale production within three to five years, positioning Sonora as a hub for sustainable mobility and innovative manufacturing.
SOURCE: EXPANSION
NEWS BY STATE
NUEVO LEON
Fibra MTY reported a strong third-quarter 2025 performance, driven by disciplined growth, industrial property expansion, and efficient portfolio management, with total revenues up 15.6% and Net Operating Income rising 17.4% year-over-year. The company strengthened its industrial acquisitions pipeline with over $500 million in investments, including advanced negotiations for $120 million in properties across Nuevo León, Coahuila, Querétaro, Guanajuato, and the Valley of Mexico. During the quarter, Fibra MTY completed key divestments, such as the Fortaleza building in Estado de México and the Batach portfolio in Nuevo León, while acquiring a new industrial lot in Ciénega de Flores for future expansion. The firm manages 119 properties with 96% occupancy, maintains a strong financial position with controlled leverage, and continues its focus on sustainability, achieving high scores in GRESB and S&P Global CSA assessments, reflecting both operational and environmental excellence.
SOURCE: MEXICO INDUSTRY
COAHUILA
Stellantis launched its new RAM Mexico lineup at the Saltillo plant, producing trucks for both domestic and international markets, reinforcing Coahuila as a major automotive manufacturing hub. Governor Manolo Jiménez Salinas and Stellantis executives highlighted the high-quality workforce and the state’s integration into North American value chains, with exports targeting the U.S., Canada, and global markets. The new Derramadero plant will produce RAM 1500 trucks, emphasizing collaboration between government, industry, and civil society to sustain Coahuila’s industrial leadership, innovation, and investment-friendly environment.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
SAN LUIS POTOSI
San Luis Potosí Governor Ricardo Gallardo Cardona announced the construction of a new highway connecting San Luis Potosí to Querétaro, financed by Grupo Meta with a private investment exceeding 20 billion pesos. The project aims to improve mobility, reduce traffic on Highway 57, and enhance economic development by strengthening the state’s position as a strategic industrial and logistics hub in the Bajío region. The highway is expected to create direct and indirect jobs, boost tourism, support the automotive cluster, and attract additional global investments.
SOURCE: EL ECONOMISTA
NEWS BY STATE
MEXICO CITY
Mexico City’s industrial real estate market continues to strengthen, driven by the growing influence of logistics and nearshoring. The capital and its metropolitan area saw higher absorption and construction activity, reaching the strongest levels in five years. The logistics sector remains the main growth engine, generating most of the demand for industrial space and reflecting renewed momentum after recent global trade tensions, that has sustained the pause created by the tariff crisis in manufacturing sectors where nearshoring 2.0 is currently taking shape.
Key corridors such as Cuautitlán-Tultitlán-Tepotzotlán (CTT) and the emerging Zumpango-AIFA area lead this expansion, with increasing pre-leases and renewals indicating sustained confidence from both domestic and international companies.
Companies from Mexico, the United States, and South Korea drive this expansion, reinforcing Mexico City’s leadership as the country’s primary logistics and distribution center. The result is a more dynamic, competitive, and strategically positioned industrial market that reinforces Mexico City’s role as the country’s logistics hub.
SOURCE: EL FINANCIERO
STATE OF MEXICO
Fronius México has inaugurated its new Competence and Technical Training Center in Tlalnepantla, in the Valley of Mexico, aiming to strengthen technical professionalization in welding and photovoltaic industries. The facility includes labs with industrial robots, automation systems, and a hybrid solar installation. In particular, the strategic location seeks to enable Fronius to provide faster support and training to manufacturing companies and technicians from various sectors.
According to Managing Director Fidel Guajardo, the center will bring specialized knowledge closer to clients and promote quality and sustainability. Powered partly by renewable energy, it offers training for all skill levels. This opening reinforces Fronius’s 18-year presence and expansion strategy in Mexico, consolidating its leadership in advanced welding and solar technology solutions for the manufacturing industry.
SOURCE: MEXICO INDUSTRY
INVESTMENT NEWS
NORTHERN MEXICO
DAYE
Daye inaugurated a new plant in Salinas Victoria, Nuevo León. With an investment of 300 million dollars, the project will create over 2,000 direct jobs and support local economic activity and the regional supply chain. Daye is engaged in the manufacturing of electric tools and smart products for gardening and irrigation, serving international markets.
CENTRAL MEXICO
BOMBARDIER
Bombardier announced an investment of 18 million dollars in Querétaro to expand its operations and strengthen its aerospace manufacturing capacity. The project includes the creation of 246 specialized jobs.
SOURCE: MEXICO INDUSTRY
PRODENSA INSIGHTS
YOUR COMPLETE GUIDE TO STARTING — AND THRIVING — IN MEXICO
As Prodensa celebrates 40 years helping global companies expand, this guide walks investors through the essentials of starting and growing a business in Mexico under the USMCA framework.
• Why Mexico? Mexico offers cost efficiency, skilled labor, and proximity to the U.S., supported by strong industrial corridors, tech clusters, and supplier networks.
• Starting a Business. The guide covers all incorporation steps — legal structure, SAT registration, banking, and permits — plus a free market entry checklist.
• Expanding Operations. Through the IMMEX Program and The Mexico Journey® Turnkey Model, Prodensa helps companies launch export-oriented factories in months.
• Challenges & Solutions. From labor culture and site selection to compliance, Prodensa shares practical strategies to help foreign firms adapt and succeed.
• Taxes in Mexico. Key taxes include 30% corporate income, 16% VAT, and state payroll and profit-sharing obligations, with available incentives for exporters.
• How Prodensa Helps. With 40 years of expertise in strategy, real estate, compliance, and HR, Prodensa serves as both advisor and operational partner for companies entering Mexico.
PRODENSA INSIGHTS
MEETING THE DEMAND FOR CROSS-BORDER
TALENT
As North American companies expand into Mexico, demand for specialized talent is booming — creating new opportunities for U.S.-based recruitment firms. But hiring in Mexico requires strict compliance with local labor laws, taxes, and REPSE regulations.
That’s where Employer of Record (EOR) partners come in. The right EOR allows recruiters to deliver talent while ensuring legal employment, payroll, and benefits administration under Mexican law.
What Recruiters Need from an EOR Partner
EOR partners must do more than process payroll — they must ensure compliance, REPSE certification, and local employee support. Many global EOR platforms (like Deel or Remote) lack in-country presence, creating risks for recruiters and their clients.
Introducing Mindfacturing®
Prodensa’s binational EOR solution, Mindfacturing®, bridges the gap between U.S. and Mexican regulations. As part of the IMMEX program, it provides tax incentives while managing onboarding, payroll, and compliance in-house.
Key advantages:
• REPSE certified for specialized services
• Binational HR & legal support
• Transparent payroll and benefits management
• Scalable for teams of any size
• How the Partnership Works
• Recruiters source talent; Prodensa hires and manages the employee under its compliant structure. Clients receive a single invoice in the U.S., ensuring simple cross-border accounting.
With over 500,000 hires managed since 2000, Prodensa serves as the trusted operational extension for recruitment firms in Mexico — ensuring compliance, stability, and confidence in every placement.
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