Mexico Business Summit 2025 - Impact Report

IMPACT REPORT

THANKS TO ALL OUR SPONSORS

OVERALL SPONSORS

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Platinum Sponsors Gold Sponsors

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AUTOMO TIVE TRACK

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Gold Sponsors

Silver Plus Sponsors

NATURAL GAS TRACK

Platinum Sponsor

Gold Sponsor

Gold Sponsors

Silver Sponsor

NEARSHO RING TRACK

STRATEGIC ALLIANCES

The Mexican economy finds itself at a pivotal, yet contradictory, crossroads. On one hand, Mexico has surged to become the largest trading partner of the United States, displacing China and cementing its position as a leading contender for nearshoring opportunities to reach the world’s most important consumer market. On the other hand, this rapid ascent has exposed critical vulnerabilities. Inadequate infrastructure is struggling to support the significant interest and evolving needs of global supply chains. Furthermore, geopolitical factors and the United States’ shifting its trade policy from globalization to a more protectionist stance are fostering caution among investors, raising questions about the long-term safety and stability of establishing manufacturing operations in Mexico.

While nearshoring is not a new phenomenon, but a trend that started with the signing of the North American Free Trade Agreement (NAFTA), experts have long warned that Mexico has not and is not fully capitalizing on the advantages of having a deep integration with the United States. Despite decades of operating under NAFTA and the subsequent USMCA, Mexico has historically failed to translate its geographic and trade advantages into the necessary long-term investments in infrastructure, energy security, and workforce specialization.

The USMCA’s 2026 review adds a further layer of complexity to this equation, introducing a period of inevitable political and trade uncertainty. However, the Mexican business community is viewing this challenge not as a deterrent, but as a source of opportunity. Companies understand the urgent need to start working with the country’s existing assets to build a stronger economy and demonstrate that Mexico is a reliable, mature, and capable partner for sustained North American integration.

It was within this context that the second edition of the Mexico Business Summit was held in Monterrey, Nuevo Leon. Business and political leaders gathered not only to dissect the challenges Mexico presents for national and foreign investors, but also to share actionable insights on how to better navigate the Mexican context. The primary goal was to define strategies that successfully deliver value, not only to final consumers and global supply chains, but also to drive national economic and social development.

411 companies

633 conference participants

152 speakers

2nd edition

30 sponsors

47,877 visits to the conference website

Breakdown by job title Conference social media impact Pre-conference social media impact

direct impressions during MBS

direct pre-conference LinkedIn impressions 4% click through rate during MBS

pre-conference click through rate

Matchmaking

Mexico’s leading B2B conference organizer uses a customized app to deliver an unparalleled experience

The MBE App delivered AI-powered intent-based matchmaking to Mexico Business Summit 2025 attendees

MBE App Impact

440 participants

3,097 matchmaking communications

528 1:1 meetings conducted

Matchmaking intentions Total

4,047 2,562 Trading 1,485 Networking

• 3C Metrology

• 5 Steps H eadhunting

• 99 Minutos

• Abitat

• ACCEL

• ACCIO NA ENErGIA

• Acclaim Energy

• Accudyn

• ActionCOACH

• AECOM

• AeroVant

• Agencia Danesa de Energia

• Agencia Estatal de Energías renovables

• Agencia Estatal de Energías renovables de Nuevo León

• AGENCIA rOJAS VELA Y ASOCIADOS

• Aggreko

• AIFA

• Air Charter Service

• Alian Plastics

• Alliance

• ALPEK-NEG

• Altamira Terminal Multimodal

• AMACArGA

• AMAr A NZErO

• AmCham Mexico - Monterrey Chapter

• AMCHAM Northeast Chapter

• AMDEE

• AME

• AMECH / H uman Staff

• AMENEEr

• AMGN

• AMITI

• AMSCA

• Anchor relocation Worldwide

• ANPACT

• APM Terminals

• Apymsa

• Area Industrial

• ArTIG r AF

• Ar ZYZ

• Atlantica

• Atlas renewable Energy

• AUMOVIO

• Autoliv

• AUTOZONE MEXICO

• Baker McKenzie

• Banco Base

• Banregio

• BBVA

• Becerril, Coca & Becerril

• BErGEN ENGI NES MEXICO

• Beyond Logistics

• BID Invest

• Biocinergia

• BioWare

• BNSF

• BN SF railway

• Borealix

• B r ENNTAG

• B rIO Energia

• B rIO SUMINISTr ADOS ENErGETICA

• BTX GLOBAL LOGISTICS

• Bulkmatic de México

• business 2 Connect

• Business Sweden

• C.H robinson

• CAINTr A

• Caliza

• Cámara Nacional de la Industria de Transporte Marítimo (C AMEINTr AM)

• CAMAr A NACIONAL DE MANUFACTU r AS ELECTrICAS

• CAMEXA

• CANACAr

• CANAME - Cámara Nacional de Manufacturas Eléctricas

• Canopia Carbon

• Capwatt México

• C ardiotrack

• CArGA-AEr EA.com

• Cargo Weld

• C aterpillar

• CCE

• Ceat Design and Manufacturing Systems S. de r L. de C.V.

• C H robinson

• CHI rON Mexico

• cinco soluciones

• CLAUT (Cluster Automotriz de N uevo León)

• CLEBEr

• Click M akers, LLC

• Clúster Energético

• Clúster Energético de Nuevo León

• CMIC

• CNW

• Co-Production International

• Coba Technologies, Inc

• Cobra IH/ TEDAGUA (G rUPO COB r A)

• COGEN Er A mexico

• Colegio de Profesionistas y Asesores en Comercio Exterior y Aduanas COPACEA

• Colliers

• Comercial El Molino Azteca

• ConalepNL

• Conecta

• Consulado general de Canadá

• Consulate General of Canada in Monterrey

• COPACEA

• COPACHISA

• Corey Solar

• Corredor Interoceánico del Istmo de Tehuantepec (CIIT)

• COSCO Shipping Lines

• Csoftmty

• Cuatrecasas

• Cubico Sustainable Investments

• Cushman and Wakefield

• Deacero

• Deloitte

• Denso

• DHL

• DHL Global Forwarding México

• DICKA LOGISTICS

• Diprem S.A

• Diram

• Distributed Power Solutions

• DMSolar

• DOW

• DP World

• D rIVEN / CLAUT Innovation Center

• Drivin

• Dubai Chambers

• E3

• Ekolabs

• Electriz / Cogenera Mexico

• ELEIA México

• Element Materials Technology Monterrey

• Elite Last Mile Industrial Parks

• Embassy of Sweden in Mexico

• EN-Tr EGA

• Enegence

• ENErGEX

• ENErGI

• Energía Solario

• Energy Efficiency Hub

• Energy Expert

• Enestas

• EN GIE México

• ENTErGI

• EPI rOC México

• Equinix

• Er A G rOUP

• Esentia Energy Systems

• ESM INDUSTrIES

• Estafeta

• Esvicon

• EU r EKA

• Evonik

• EVOTECH

• FCO Group | Lideres Mexicanos

• FedEx Express México

• FEMIA

• Ferrer & Asociados

• Ferrovalle (Ferrocarril y Terminal del Valle de México)

• Fibra Danhos

• Fibra MTY

• Finergy

• FINSA

• Finsolar

• Forefront Power

• Fr8Technologies

• FUMEC

• GArOCE

• GE Vernova Gas Power

• Genertronics Mexico, S. A. de C.V.

• Geotab

• Girasolve Energy

• G labaltranz

• GLego roup

• global Logistics Consulting

• G lobalTranz

• GM

• G NP Seguros

• Gobierno de Monterrey

• Government of Canada

• Government of Monterrey

• Government of Nuevo Leon

• GP Logistics

• Great Place to Work® México

• G r EEN KIIN

• GreenLux

• Grupo Aeroportuario Centro N orte (OMA)

• G rupo Amson

• Grupo ATC

• G rupo CIITA

• G rupo Clisa

• Grupo Comercial Control

• Grupo DEACErO

• Grupo Empresarial Interesse Odessa

• Grupo Estrategia Política

• G rupo Eulen

• Grupo Eulen / AMECH

• Grupo Financiero Banorte

• Grupo Gentor

• Grupo Mexico Servicios de Ingenieria

• Grupo Pochteca

• Grupo Tarmex

• Grupo Valoran

• GS Desarrollo en Tecnologia (G lobalSoft)

• GT LOGISTICS

• GVD LOGISTICS

• HASKELL

• Hermes Infraestructura

• Hexagon

• Hitachi Energy

• HO LDIN GAINS

• Holland & Knight México, S.C.

• Human Quality

• IATA

• Iberdrola México

• IBM

• IDS Geo radar

• Impulsora

• Inc Monterrey

• Inclusive logistics LLC

• incMTY - Tec de Monterrey

• INDEX Monterrey

• Industria Nacional de Autopartes (INA)

• Industrias Lowe

• INGENIErIA Y EQUIPOS DE FILTr ACIÓN, INGEFISA SA DE CV

• Instituto de Mexicanas y Mexicanos en el Exterior

• Intermex

• International SOS México Emergency Services S de r L de CV.

• Interpuerto Monterrey

• Invest Monterrey

• InvestMx

• IOS Offices

• IsoCindu

• JA Del río

• JAMCO

• Jinko Solar

• JLL

• Johnson Controls

• KEPLEr CO NSTrUCTO r A

• Keymex Energy

• Kia México

• Kiewit

• Kin Energy Internacional

• KINENErGY

• KLN México

• Korn Ferry

• KPMG

• Kroll

• KUKA

• Kuren Industrial

• Legand

• Levu Executives

• LexisNexis risk Solutions

• Liffe group

• Living Healthy & Active LLC

• Livoltek

• Longi

• Lottus Education

• Loyalty Logistics

• LUXEM

• Luxem Energía

• Manpower LATAM

• MAr KSMAN XBF LLC - SOCIO COMErCIAL DE COBA TECHNOLOGIES, INC

• Matri

• Mazmobi

• MEDITErr ANEAN SHIPPING COMPANY DE MEXICO

• METAL ONE DE MÉXICO

• Metalsa

• Mexican Association of Data Centers (MEXDC)

• Mexican Association of Qualified Suppliers (AMSCA)

• MFG Solutions Inc

• MI DEA MEXICO

• MITSUI & CO. INFr ASTrUCTU r E SOLUTIONS SA DE CV

• Mitsui & Co., Global Strategic Studies Institute

• Monterrey Aerocluster

• Motive

• Mundi

• Municipio de San Pedro Garza García

• MyShipper

• MYVISA Monterrey

• Naturgy Mexico

• NEG

• N EG NATU r AL

• Newmont

• NextGen Intelligence

• Ngrenta

• NO rOC

• Nueva Imagen Design

• nutriADN

• NXT

• Oasis Global Consulting

• Oca Global

• Oil and Gas Alliance

• OMA G rOUP

• Omnitracs MExico

• On.Energy

• ONE MÉXICO

• ONE Ocean Network Express

• Onest Logistics

• Open it

• PC r INTEr NATIONAL

• Pérez-Llorca

• Plante Moran

• Platzi

• PNM

• Portalia

• Prolec ge

• PrOMINOX

• PrOM OLOGISTICS

• Prosolia

• Protexa

• Puerto Verde Global Trade Bridge

• Pulpo

• PwC

• Quartux

• r .H. SHIPPING & CHArTErING

• radiocare

• r AGASA INDUSTrIAS

• r AME Autotransportes

• reach

• redBox Innovation

• reducto

• reducto /Daysitek

• relyon

• rhenus Germany

• rhenus Logistics

• rOCA Desarrollos

• rockwell Automation

• rOMESA BUSINESS & Tr ADING SOLUTIONS

• S&E TECHNOLOGY S.A DE C.V

• Sally beauty

• Sambol

• SAMPOL INGENIErIA Y OB r AS SA DE CV

• Santos & Becker, S.C.

• Santos Elizondo

• Schunk Carbon Technology

• Secretaría de Economía

• Secretaría de Economía de Nuevo León

• Secretaría de Igualdad e Inclusión

• Secretaría de Medio Ambiente del Estado de Nuevo León

• Secretary of Economic Development of Monterrey, NL

• SEISA

• Seisa energía

• SENADO

• Senate of Mexico

• Sener

• Shipper Express

• Siemens Energy

• Siemens SW

• Sierra Latam

• SISAT (Sistemas de información satelital)

• SLLM

• SMBC

• SoEnergy

• SOLAr DEC

• SOLENSA GAS

• Solera Omnitracs

• Solfium

• Solventa Energía | ENHO

• Square Energy

• State Government of Nuevo Leon

• Stiva

• Sumitomo Mitsui Banking Corporation

• SUSE

• Tasvalúo / AMECH

• Tec de Monterrey/incMTY

• TECMA

• Tecnológico de Monterrey

• Tecsir

• TENSEC

• Tent Partnership for refugees

• Tequilera de Arandas

• Ternium

• Tesla

• The 1% Financial Leaders

• ThermoFisher

• Total Cloud

• Toyota de México

• Tractian

• Tramontina

• Transmontes

• Tren Maya S. A. de C.V.

• Trimble

• TUBACErO

• Turner & Townsend

• Tuto Power

• TUVACE

• UANL

• Uber Freight

• UKG

• UMD Automated Systems

• UNAQ

• UNHC r

• Universal robots

• University of Monterrey (UDEM)

• VA Design

• Valia Energía

• Veolia

• Vértice Worldwide

• Viva El Sol

• Viwala

• Von Wobeser y Sierra

• VYNMSA

• Walmart

• WEECOMPANY

• Wefor Life

• Why Loyalty

• Wood Mackenzie Power & renewables

• XENON Automation

• Xepelin

• ZF Group

• ZrG PArTNErS

TUESDAY, OCTOBER 28

MEXICO

BUSINESS STAGE

09:00 SHARED PROSPERITY, A VISION FROM THE SENATE’S ECONOMIC COMMISSION

Speaker: Emmanuel Reyes, Senate of Mexico

09:20 INCMTY INNOVATION FOR GROWTH: DEVELOPMENT OF INNOVATION, ENTREPRENEURSHIP, AND INVESTMENT HUBS TO ACCELERATE BUSINESSES

Speaker: Josué Delgado, IncMTY

10:00 THE POWER OF THREE: A NEW ERA FOR NORTH AMERICAN PARTNERSHIP

Speaker: Juan Bringas, Government of MTY

Lorenzo Barrera, AMCHAM Northeast Chapter and President, Banco BASE

Annabelle Larouche, Consul General of Canada in Monterrey

10:30 NUEVO LEON: PREMIER NEARSHORING DESTINATION

Speaker: Betsabé Rocha, State Government of Nuevo Leon

11:15 RESHAPING AUTOMOTIVE SUPPLY CHAINS THROUGH TRADE, TECHNOLOGY ADOPTION

Moderator: Julio Galván, Industria Nacional de Autopartes (INA)

Panelists: Felipe Villarreal, Alian Plastics

Manuel Montoya, CLAUT (Cluster Automotriz de Nuevo León)

12:30 SWEDEN’S GROWING FOOTPRINT: INVESTMENT AND SUPPLY CHAIN SYNERGIES IN THE MEXICAN AUTOMOTIVE INDUSTRY

Moderator: Helena Carlsson, Business Sweden

Panelists: Alexander Peyre, Embassy of Sweden

Kevin Fox, Autoliv Paolo Veglio, Hexagon

NEARSHORING STAGE

11:15 BALANCING THE ENERGY MIX: NATURAL GAS AND RENEWABLES FOR SUSTAINABLE MANUFACTURING GROWTH

Moderator: Daniel Salazar, Cogenera México

Panelists: Mauricio Herrera, AMDEE

Roberto de la Garza, Mexican Association of Qualified Suppliers (AMSCA)

Julio Valle, AME

Jorge Sandoval, AMGN

12:00 MEXICO’S ENERGY EQUATION: PRODUCERS, OFFTAKERS, AND THE PRICE OF POWERING GROWTH

Moderator: Eduardo Robledo, Tuto Power

Panelists: Alejandro Peón Peralta, Naturgy

Norma Rodríguez, ArZYZ

Alejandro De Keijser, Deacero

Javier Pastorino, Siemens Energy

Jonathan Pinzón, Valia Energía

13:00 GROWTH PERSPECTIVES FOR NORTH AMERICA’S POWER MARKETS: WHAT ARE THE CHALLENGES AHEAD?

Speaker: Juan Pablo Londoño, Wood Mackenzie Power & renewables

MADE IN MEXICO DOME

11:15 KEY TRENDS SHAPING AIR CARGO AND AIRPORT INFRASTRUCTURE IN MEXICO

Moderator: Victor Cruz, Asociación Mexicana de Agentes de Carga (AMACArGA)

Panelists: Jorge Torres, FedEx Express México

Ricardo Dueñas, Grupo Aeroportuario Centro Norte (OMA)

Tte. Coronel Ing. Industrial Héctor Reyes Vega, AIFA

12:00 OCEAN FREIGHT: MEXICO’S GATEWAY TO THE WORLD

Moderator: Ing. José Manuel Urreta, Cámara Mexicana de la Industria del Transporte Marítimo (CAMEINTrAM)

Panelists: Beatriz Yera, APM Terminals

Emmanuel Neri, Corredor Interoceánico del Istmo de Tehuantepec (CIIT)

Jiawei Mei, COSCO Shipping Lines

12:45 MEXICO’S MULTIMODAL CAPABILITIES FOR NORTH AMERICAN INTEGRATION

Moderator: Sergio Castañeda, BTX Global Logistics

Panelists: Francisco Fabila, Ferrovalle (Ferrocarril y Terminal del Valle de México)

Rodrigo Morales, AECOM

Alejandro Doria, Bulkmatic de México

MEXICO BUSINESS STAGE

15:00 THE TECH-DRIVEN LOGISTICS REVOLUTION: HOW TECHNOLOGY IS REDEFINING MEXICO’S SUPPLY CHAINS

Moderator: Paris Guzmán, Solera Omnitracsn

Panelists: José Liborio Calderón, Geotab

Rodolfo Morales Lagos, Drivin

Marco Serrato, MyShipper

Evaristo Babé, Pulpo & PulpoPay

16:00 THE EVOLVING LOGISTICS PLAYBOOK: CHARTING NEW STRATEGIES FOR THE LOGISTICS MARKET OF TOMORROW

Moderator: Paulo Biazotti , Ocean Network Express (ONE) Mexico

Panelists: Jean Paul Sarrapy, GP Logistics

Luis Angel Mera, Vertice Worldwide

José Antonio García, Onest Logistics

NEARSHORING STAGE

15:00 MEXICO’S MANUFACTURING POWERHOUSE: TODAY’S PRIORITIES TO ENSURE TOMORROW’S COMPETITIVENESS

Moderator: Zelina Fernández , INDEX Nuevo León

Panelists: Julio Galván, INA

Luis Manuel Azúa, FEMIA

Miguel Ogazón, ANPACT

16:00 REENGINEERING THE FACTORY FLOOR: TECHNOLOGY RESHAPING MANUFACTURING, COMPETITIVENESS

Moderator: Cecilia Díaz, rockwell Automation

Panelists: Uriel Fraire, Universal robots

Alejandro Canela, Siemens SW

Christopher Hernández, KUKA

Gerardo Pazos, SUSE Mexico & rest of Latin America

MADE IN MEXICO DOME

15:00 TRANSFORMING THE FUTURE OF RETAIL TALENT

Speaker: Yolanda Rodríguez, Walmart

15:20 BEYOND TOMORROW

Speaker: Gonzalo Díaz-Báez, Wefor Life

15:40 THE TRUST EFFECT

Speaker: Renán González, Great Place to Work

16:00 TENT PARTNERSHIP FOR REFUGEES: THE WIN-WIN OF HIRING REFUGEES AND MIGRANTS

Speaker: Arturo Rocha, Tent Partnership for refugees

16:40 UNLOCKING POTENTIAL: THE FUTURE OF NEARSHORING

Speaker: Paulina Aguilar, Mundi

WEDNESDAY, OCTOBER 29

MEXICO BUSINESS STAGE

09:00 MEXICO’S ELECTRICITY MARKET: INSIDE PERSPECTIVES ON SUPPLY, DEMAND, TECHNOLOGY & FINANCE

Moderator: Yolanda Villegas, Energy Expert

Panelists: Diego Arriola, NXT

José Buganza, Enegence

Leopoldo Salinas, Capwatt Mexico

09:45 FROM POTENTIAL TO POWERHOUSE: ACCELERATING SOLAR DEPLOYMENT IN MEXICO

Moderator: Ian de la Garza, Finsolar

Panelists: Alberto Cuter, Jinko Solar

Juan Pablo Sáenz, Atlas renewable Energy

Luis Quero, Atlantica

Miguel Medina, Corey Solar

NEARSHORING STAGE

09:00 INDUSTRIAL INFRASTRUCTURE IN MEXICO: CORNERSTONE FOR ADVANCED MANUFACTURING GROWTH

Moderator: Diego Sánchez-Labrador, SLLM

Panelists: Salomon Noble, Intermex

Javier Lomelin Anaya, Colliers Mexico

Luis Montes de Oca, Elite Last Mile Industrial Parks

09:50 BUILDING MEXICO’S NEXT-GEN INDUSTRIAL INFRASTRUCTURE

Moderator: Mario Salazar, CMIC

Panelists: Guillermo Luna Hornelas, IsoCindu

Javier Llaca, Fibra MTY

Eduardo Orozco, Trimble

Juan Paulo Mendoza, JLL

MADE IN MEXICO DOME

09:00 OPTIMIZING FREIGHT MOVEMENT: THE FUTURE OF INTERMODAL LOGISTICS IN MEXICO

Moderator: Augusto Ramos, rAME Autotransportes

Panelists: Omar Camacho, Motive

Verónica González, CH robinson

Walter Campos, GlobalTranz

09:30 UNLOCKING MEXICO’S RAIL LOGISTICS POTENTIAL IN THE ERA OF GLOBAL SUPPLY CHAIN TRANSFORMATION

Moderator: Francisco Fabila, Association of Mexican railroads

Panelists: Paul Hirsch, BNSF railway

Emmanuel Neri, Corredor Interoceánico del Istmo de Tehuantepec (CIIT)

MEXICO BUSINESS STAGE

10:30 SMART FACTORIES, SMARTER TALENT: BRIDGING THE DIGITAL SKILLS GAP FOR ADVANCED MANUFACTURING

Moderator: Rodrigo García, GArOCE

Panelists: Pablo Sillas, Grupo DEACErO

Rodrigo Piña, Ternium

Rafael Navarro, Human Quality

Rodrigo Carrasco, UKG

11:15 THE HUMAN CAPITAL IMPERATIVE: HOW HOLISTIC WELL-BEING DRIVES BUSINESS RESILIENCE AND GROWTH

Moderator: Beatriz Robles, Manpower LATAM

Panelists: Óscar G. Zato, Grupo Eulen

José Manuel Bas, GNP Seguros

Juan Carlos Meade, Secretary of Equality and Inclusion of Nuevo Leon

Alejandro Hernández, Grupo Comercial Control

12:00 ECONOMIC IMPACT OF LATINOS ABROAD

Speaker: Tatiana Clouthier, Instituto de Mexicanas y Mexicanos en el Exterior

NEARSHORING STAGE

10:40 NORTH AMERICAN SUPPLY CHAINS: MASTERING CROSS-BORDER LOGISTICS AND STRATEGIC RESILIENCE

Moderator: Grace Lingow, AmCham Mexico - Monterrey Chapter

Panelists: Alfonso Ortiz, rhenus Logistics

Rómulo Mejía, CANACAr

Alonso Pedrero, Puerto Verde Global Trade Bridge

MADE IN MEXICO DOME

10:00 POWERING INDUSTRIAL GROWTH: STRATEGIC ENERGY SOLUTIONS FOR MEXICO’S MANUFACTURERS

Moderator: Edmond Grieger, Von Wobeser y Sierra

Panelists: Eugenio Fernández, Legand

Guadalupe Paredes, LUXEM

10:40 RELIABLE POWER FOR INDUSTRIAL PARKS

Speaker: Aldrich Richter, Bergen Engines

Facundo Gatica, Sampol

11:00 OPTIMIZING PROJECT DEVELOPMENT FOR MEXICO’S NEXT GENERATION ENERGY INFRASTRUCTURE

Moderator: Pedro Aznar, Prosolia

Panelists: Alejandro Villarreal, Esvicon

Fernando Tovar, Mitsui & CO Infrastructure Solutions

Santiago Ramos, SMBC SOFOM

11:40 HYBRID ENERGY: TRANSFORMING MINING PROJECTS FOR A SUSTAINABLE FUTURE

Speaker: Nicté Ovando, Aggreko

12:00 EXPANDING GAS AVAILABILITY FOR REGIONAL INDUSTRIAL GROWTH

Moderator: Gabriel Ruiz, Holland & Knight

Panelists: Juan Paulo Cervantes, SOLENSA

Napoleón Cantú, TUBACErO

Carlos Boone de Nova, Enestas

Sergio Charles, Protexa

12:45 DRIVING DECARBONIZATION VALUE CREATION THROUGH ENERGY EFFICIENCY, RENEWABLES AND CARBON CREDITS

Moderator: José González , AMENEEr

Panelists: Francisco Villarreal, Kinenergy

Andrés Friedman, Solfium

Aquiles López, CANAME - Cámara Nacional de Manufacturas Eléctricas

MEXICO BUSINESS STAGE

12:30 MEXICO’S AVIATION FRONTIER: FORGING CONNECTIVITY FOR GROWTH

Moderator: Carlos Campillo, Sierra Latam

Panelists: Tte. Coronel Ing. Industrial Héctor Reyes Vega, AIFA

Ricardo Dueñas, Grupo Aeroportuario del Centro Norte (OMA)

Cintya Martinez, IATA

NEARSHORING STAGE

11:30 GROW WITHOUT INVESTORS

Speaker: Javier García Iza, IOS Offices

11:50 THE GEOPOLITICAL PUZZLE: GLOBALIZATION, REGIONALIZATION, NEARSHORING & TARIFFS

Moderator: Armando De Lille, Deloitte

Panelists: Francisco Flores, Grupo Financiero Banorte

Martin Toscano, CAMEXA

Jorge Sánchez, KPMG Mexico

12:50 ARTIFICIAL INTELLIGENCE: OPERATIONAL EFFICIENCY FOR BUSINESS

Speaker: Bruno Pancica, IBM

13:10 INTEGRAL DEVELOPMENT OF THE PROJECT TREN MAYA

Speaker: Gral. Brig. E.M. Germán Redondo Suárez, Tren Maya

MEXICO BUSINESS STAGE

15:00 BRIDGING THE TALENT GAP: CRAFTING HIGH-PERFORMANCE STRATEGIES FOR MEXICO’S FUTURE WORKFORCE

Moderator: Gustavo Solares, Korn Ferry

Panelists: Óscar Santos, Santos&Becker

Enrique Gerardo Sosa, Universidad Aeronáutica en Querétaro (UNAQ)

Carlos Atoche, University of Monterrey (UDEM)

Juan Rebolledo, Lottus Education

15:45 MEXICO’S BLUEPRINT FOR ADVANCED MANUFACTURING R&D AND INNOVATION

Moderator: Eugenio Marín, FUMEC

Panelists: Jorge A. Vázquez, ZF Group

Ricardo Apaez, DrIVEN / CLAUT Innovation Center

Rebeca Parra, ArTIGrAF Group

NEARSHORING STAGE

15:00 CHALLENGES AND OPPORTUNITIES FOR THE DATA CENTER SECTOR IN MEXICO

Speaker: Adriana Rivera Cerecedo, Mexican Association of Data Centers (MEXDC)

15:30 CRITICAL SUCCESS FACTORS BEHIND NUEVO LEON’S NEARSHORING SUCCESS

Moderator: Héctor Díaz-Santana, KPMG Mexico

Panelists: Irma Leon, Industrias Lowe

Zelina Fernández, INDEX Monterrey

Elisabet Zuñiga, Invest Monterrey

Nancy Sánchez, The LEGO Group

SHARED PROSPERITY, A VISION FROM THE SENATE’S ECONOMIC COMMISSION

The Mexican Senate’s Economy Commission, chaired by Sen. Emmanuel reyes Carmona, is advocating for a national economic strategy centered on Shared Prosperity (Prosperidad Compartida). This vision, a key pillar of the “second floor of the Fourth Transformation” under President Claudia Sheinbaum, aims to position Mexico as a global economic power. Its core philosophy is that prosperity must be shared: Development cannot benefit only a few, and wealth must be distributed to those with the fewest resources, r eyes Carmona said.

The Four Pillars of the ‘Plan Mexico’ Strategy

“Plan Mexico” is the comprehensive strategy designed to consolidate Mexico as a highvalue-added exporting power, leveraging the country’s geographic position, talent, and opportunities created by nearshoring.

The strategy is structured around four fundamental axes:

+ reindustrialization with Technological Innovation: This pillar focuses on strengthening value chains and attracting high-value-added investment. It prioritizes national production, fosters innovation, and strengthens economic self-sufficiency.

+ Balanced regional Development: The goal is to drive development from within the country by creating poles of wellbeing (polos de bienestar) and productive infrastructure across all territories.

+ Economic and Social Inclusion: This ensures that women, youth, and small businesses are incorporated into development opportunities.

+ Sustainability and Energy Transition: The plan guarantees that economic growth is compatible with environmental protection.

“Businesses are actively collaborating with the Ministry of Economy and state governments in the development of Plan México, ” reyes noted. “This is the strategy for the country to become an economic and exporter powerhouse. The ultimate goal is for Mexico to reach the 10th position among global economies,” he added.

The “Plan Mexico” introduces two key tools intended to organize economic development, strengthen private investment, and ensure territorial justice:

Key Tools for Economic Development

1. Economic Development Poles for Wellbeing (Polos de Desarrollo Económico para el Bienestar): These poles serve as the foundation of regional development strategy, envisioned as integrated productive ecosystems where the state promotes investment, strengthens local capabilities, and facilitates public and logistical services.

“Through these 16 development poles, we aim to promote development across the country,” noted reyes.

The poles will include:

+ Targeted fiscal incentives based on regional productive vocation, encouraging investment in innovation and r&D

+ Administrative facilities

+ Energy and infrastructure viability

The strategy encourages business relocation, expands high-value local supply chains, and increases national and regional content through import substitution. The first stage includes the goal of generating 300,000 jobs and securing an investment equivalent to 1.5% of the GDP during the

current administration. Key strategic sectors prioritized for these poles include Automotive and Electromobility, Aerospace, Electronics and Semiconductors, Energy, and Logistics.

2. relaunch of ‘Hecho en México’

The government has updated the national seal of origin to strengthen domestic industry. To use the seal, products must be manufactured, assembled, or processed in Mexico and meet a minimum threshold

INCMTY INNOVATION FOR GROWTH: INVESTMENT HUBS FOR BUSINESSES

Monterrey is emerging as a strategic hub for technology, talent, and entrepreneurship. Yet despite its expanding entrepreneurial ecosystem, challenges persist in creating coordinated connections between startups, corporations, investors, and research institutions. This fragmentation limits the potential for technology transfer, market scaling, and knowledge exchange, ultimately constraining the region’s ability to fully leverage its talent and research base.

To address these challenges, initiatives are increasingly focusing on structured platforms that facilitate collaboration, attract diverse stakeholders, and enable measurable economic and innovation outcomes. The goal is to create an integrated ecosystem where entrepreneurship, corporate innovation, and investment converge to drive sustainable regional growth.

incMTY, an initiative of Tecnológico de Monterrey, serves as a central platform connecting innovation actors, entrepreneurship programs, and investment channels. “incMTY aims to stimulate the region’s development by connecting major companies and innovators through open innovation challenges,” said Josué Delgado, CEO and Co-Founder, incMTY, at Mexico Business Summit 2025. The platform’s mission is to attract, empower, and articulate a diverse range of participants, including startups, corporations, investors, and

of national content—for example, 60% or more of national inputs, according to recent regulations. “Today, 80% of products mentioned on USMCA do not have tariffs. Our goal is for the remaining 20% to be exempt from those tariffs,” the senator said.

“As of September 2025, 2,634 companies had been authorized to use the seal. “Our work on USMCA, as Minister of Economy Marcelo Ebrard said, will ensure the agreement endures for the long term.”

researchers, while generating local and global impact.

The initiative aligns with the Monterrey Innovation District (DI), structured around three indicators of a knowledge-based economy: the attraction of entrepreneurs and scientific or technological companies, the creation of innovation-intensive jobs, and technology transfer through intellectual and industrial property development. “The knowledge economy is built on three elements: the construction of networks, the use of physical spaces, and the leverage of economic elements to attract visionaries and startups,” explained Delgado. These principles support the district’s efforts to build a cohesive and high-impact innovation ecosystem.

Strategy and Pillars

incMTY operates through four main components that serve as vehicles for amplification:

+ Open Innovation Challenges, designed to facilitate collaboration between corporates and startups;

+ incMTY Festival, a flagship annual event promoting networking, visibility, and ecosystem growth;

+ Future Now: Tech and Talent Fair, focused on talent acquisition, career development, and recruitment of highimpact researchers and innovators; and

+ Community Programs, building sustained engagement and collaboration among ecosystem participants.

Since its inception in 2013, incMTY has connected nearly 100,000 attendees and over 130,000 community members. The platform has supported startups, corporates, and investors through acceleration programs, high-impact events, and competitions offering millions in resources and prizes. “incMTY connects and powers Monterrey and Mexico’s entrepreneurial ecosystem,” emphasized Delgado, underscoring the initiative’s role as a catalyst for regional innovation.

Beyond fostering collaboration, incMTY is also promoting intelligent specialization to amplify the region’s strengths. “Intelligent specialization enables us to leverage the strengths of a place to build up talent,” noted Delgado. This approach allows Monterrey to channel its industrial capabilities and academic resources toward sustainable innovation and human capital development.

The initiative’s partnerships also extend internationally. “The World Bank is working to make supply chains more efficient and

incorporate more small producers. We worked with it to map these small producers and launch a pilot project,” shared Delgado, highlighting incMTY’s global impact. “We are also working with Meta to help its AI tool, Llama, to use our insights to help innovators and startups,” he added, illustrating the organization’s commitment to advancing digital and AI-driven innovation.

incMTY leverages Tecnológico de Monterrey’s global network, with partnerships in over 40 countries, to connect Mexico’s ecosystem with international innovation and investment opportunities. Focus industries include fintech, healthtech, mobility, advanced manufacturing, and sustainability, with increasing emphasis on corporate innovation and artificial intelligence.

By combining targeted strategy, multidisciplinary programs, and global connectivity, incMTY exemplifies how a central innovation platform can accelerate regional economic development while fostering sustainable corporate and startup growth. Through its vision and partnerships, Monterrey is positioned to become one of Latin America’s leading technology and innovation hubs, says Delgado.

THE POWER OF THREE: A NEW ERA FOR NORTH AMERICAN PARTNERSHIP

Since its implementation in 2020, USMCA has been instrumental in shaping North America’s economic landscape. However, the recent return of US President Donald Trump and his shifts in trade policy have introduced uncertainty about the agreement’s future. As USMCA approaches its scheduled 2026 review, Canada and Mexico are actively working to strengthen their bilateral partnership. However, experts agree that all parties stand to benefit from reaching a consensus to ensure continued stability and growth in the region.

“We can take advantage of USMCA to build an integrative, innovative, and resilient economy,” said Juan Bringas, Director of Entrepreneurship and Promotion, Ministry

of Economic Development of Monterrey, at Mexico Business Summit 2025.

In 2023, trilateral trade under USMCA hit US$1.88 trillion, growing by double digits and making the region one of the world’s most active economic blocs. Trade between the three countries averaged US$3.6 million every minute. In the same year, Mexico and Canada overtook China as the United States’ top trading partners for the first time since 2002. By early 2024, North American trade with the United States was 195% higher than trade with China, driven by higher tariffs on Chinese imports and stronger regional cooperation.

“USMCA is more than a commercial agreement; it is a collaboration framework that

has contributed to the economic development of North America” said Annabelle Larouche, Consul General of Canada in Monterrey.

USMCA increased the region’s appeal for FDI, especially in greenfield projects and supply chain realignment. Greenfield investment in North America rose by 136% between 2020 and 2023, reaching US$190 billion in 2023. In 1Q24 alone, the region attracted US$94 billion in new investment, with strong momentum in artificial intelligence, electric vehicles, semiconductors, and infrastructure.

“Whatever happens during the USMCA renegotiation, Mexico will continue to be favored over any other country thanks to its large advantages”

Juan Bringas Director of Investments and Technological Innovation / Secretary of Economic Development | Government of Monterrey

trade has surged, Mexico has struggled to fully capitalize on investment flows. In 2023, it received US$37 billion in FDI, about half from the United States and Canada. However, only 13% of this investment came from new ventures, suggesting caution among investors due to regulatory uncertainty and institutional hurdles.

In the United States, USMCA has reinforced efforts to reduce reliance on Chinese supply chains while securing critical imports. US exports to Canada include vehicles, machinery, electronics, and agricultural goods, while imports from Mexico center on auto parts, computers, and farm produce. In 2023, the United States attracted US$311 billion in FDI, maintaining its status as the world’s top investment destination. Wilson Center highlighted the strengthening of labor enforcement mechanisms and supply chain resilience as major wins under the agreement.

Labor rights remain a key pillar of the agreement. From May 2021 through June 2024, 25 labor complaints were filed under the rapid response Labor Mechanism (rrM), mostly involving Mexico’s automotive sector. These procedures have led to improvements in working conditions, including better wages and the reinstatement of dismissed workers. Despite this progress, labor protection still varies widely across sectors, particularly in Mexico’s informal economy.

USMCA: Basis for regional Integration

Mexico’s role in this integration has grown significantly. In 2024, the country became the United States’ largest goods supplier, driven by strong exports of vehicles, machinery, electronics, and agricultural products. On the import side, Mexico increased its purchases of US gasoline, corn, machinery, and medical instruments. “Over 1 million people cross the Mexico-US border every day, generating over US$1 billion per hour,” said Lorenzo Barrera, President, AMCHAM Northeast Chapter, and President, Banco BASE. While

Canada also plays a central role in North American trade. In 2024, it remained the top destination for US exports, particularly in energy, machinery, and aerospace. At the same time, Canada imported several volumes of US agricultural goods and technology components. It attracted US$50 billion in FDI in 2023, underpinned by its strong institutional framework and competitive market. Nonetheless, trade tensions remain. Disputes around dairy quotas and agricultural access are expected to dominate discussions in the 2026 review of the agreement.

Trade Deficits and Global Economic Context

As USMCA approaches its six-year milestone, officials from all three countries have reaffirmed their commitment to deeper economic integration. However, uncertainty remains as the US administration has signaled plans to renegotiate the agreement, citing unmet expectations.

As the current administration reviews potential changes to USMCA or its longterm direction, C.J. Mahoney, Former Deputy Trade representative in the United

States, emphasizes that a key consideration will be whether the agreement has fulfilled the core objectives set during its original negotiation under President Trump’s first term. When measured by investment growth, job creation, and supply chain resilience, Mahoney says USMCA has delivered tangible and verifiable results.

The US International Trade Commission’s latest report on the USMCA’s provisions highlights that the tightening of rules of origin has effectively reduced US imports of motor vehicle engines and transmissions from nonUSMCA countries. This shift has resulted in increased employment, higher wages, greater capital expenditures, and improved revenues for US-based producers in these sectors.

Nevertheless, some critics argue that USMCA has not succeeded in reducing the United States’ trade deficits with Mexico and Canada. While this criticism is valid to some extent, Mahoney emphasizes that trade balances are largely influenced by broader global economic dynamics. He explained that the United States is among a group of major economies that consistently run persistent trade deficits. Some attribute these enduring imbalances to fiscal and industrial policies in surplus countries that distort global trade dynamics, ultimately to the detriment of US labor markets and manufacturing sectors.

Trade data shows that the US trade deficit with Mexico rose from US$111 billion in 2020 to US$172 billion in 2024. In contrast, the

deficit with Canada increased more modestly, from US$14 billion to US$63 billion over the same period. Despite these widening gaps, Mahoney emphasized that neither Mexico nor Canada are the primary contributors to the US trade imbalance.

Trump’s Tariff Announcements and USMCA renegotiation Plans

Previously, President Donald Trump announced plans to renegotiate USMCA in an effort to prioritize US jobs, signaling a potential shift away from regional cooperation. “I think the president is absolutely going to renegotiate USMCA, but that is a year from today,” said US Commerce Secretary Howard Lutnick, referring to the upcoming scheduled review in July 2026. “He wants to protect American jobs,” Lutnick added. “He does not want cars built in Canada or Mexico when they can be built in Michigan and Ohio. It is simply better for American workers.”

In addition to existing USMCA provisions, President Trump has threatened several new tariffs. This move forms part of a broader strategy aimed at addressing what he views as inadequate progress on border security and the fentanyl crisis. In a letter, Trump asserted, “Mexico has been helping me secure the border, BUT what Mexico has done is not enough. Mexico still has not stopped the cartels who are trying to turn all of North America into a narco-trafficking playground.”

As Trump’s tariff threats resurface, Canada and Mexico are taking steps to protect their shared trade interests. Mexican President Claudia Sheinbaum and Canadian Minister Mark Carney recently met to discuss coordinated responses. “We both agreed that USMCA must be respected, and we shared our experiences about the letter we received from President Trump,” Sheinbaum said.

While Canada and Mexico pursue deeper bilateral relations due to the tariffs, the United States’ tariffs on both countries remain comparatively lower than those imposed on other partners. “Mexico has a tariff rate of about 4% with the United States, while

the European Union has a 9% and China a 40% rate,” said Barrera. This reflects stronger integration supported by exemptions maintained under USMCA, providing a key incentive for both countries to negotiate and reach agreements with the US administration.

“Whatever happens during the USMCA renegotiation, Mexico will continue to be favored over any other country thanks to its large advantages,” said Bringas.

“USMCA is more than a commercial agreement; it is a collaboration framework that has contributed to the economic development of North America”

Annabelle Larouche Consul General of Canada in Monterrey

broader renegotiation of USMCA appears unlikely in the short term. “USMCA helps to bring companies from all over the world, which can take advantage of the region’s robust industrial ecosystem,” said Larouche. “The region is the safest and most competitive economic bloc in the world.”

The anticipated continuation of the agreement aligns with recent remarks from US Treasury Secretary Scott Bessent, who clarified that “America First,” President Donald Trump’s slogan, does not mean “America alone.” Instead, Bessent emphasized, it calls for deeper collaboration and mutual respect among trade partners. Looking ahead, BofA projects that any significant revisions to USMCA will likely occur in 2026, when mandatory review mechanisms take effect. Until then, Canada and Mexico are expected to remain key partners in US trade, despite mounting pressures from Washington.

Canada and Mexico represent 32% and 41% of US trade-related GDP respectively, this reinforces their motivation to stay aligned with US trade regulations. More so, as a

“We have to take advantage of North America’s strengths to position the region as one of the strongest blocks in the world,” said Larouche.

As Mexico collectively aims to become a prime destination for nearshoring, local governments are actively competing to attract Foreign Direct Investment (FDI). Among all states, Nuevo Leon currently stands out as the national leader in receiving FDI within this nearshoring context. Despite facing significant challenges, the state government is focused on infrastructure and talent development to maintain its top position.

Betsabé rocha, Minister of Economy of Nuevo Leon, noted that the state holds the first position nationwide in attracting FDI, totaling US$110 billion. The state is also ranked first in the creation of new companies, totalling 3,914 new employers between October

NUEVO LEON: PREMIER NEARSHORING D ESTINATION

2021 and December 2024. Employment creation totaled 385,000 new jobs from January to April 2025. The unemployment rate stood at 2.8%, the lowest level recorded in the last 20 years. Furthermore, the state records the lowest labor informality in the country at 33.7%.

rocha noted that Nuevo Leon’s economic activity grew by 1.3% in 1Q25 compared to 1Q24. Nuevo Leon was the second entity with the highest contribution to national economic growth in that period. Industrial activity registered growth of 4.5% during 1H25. Exports totaled US$27.7 billion during 1H25, a growth of 3.4% compared to the same period in 2024. The state also ranks first in the reduction of extreme poverty, decreasing from 2.1% to 0.5% between 2020 and 2024. Security-related metrics show a 72.9% reduction in high-impact crimes.

The state confirmed 382 FDI projects between October 2021 and September 2025. This represents 192 new ventures and 190 expansions. The announced investment totaled US$90 billion and is expected to generate over 385,000 jobs. “Nuevo Leon grows at twice the rate of the rest of the country, despite holding only 4% of its population,” rocha said at Mexico Business Summit 2025.

The distribution of FDI by sector demonstrates a focus on industrial and technological areas: Manufacturing accounts for 39%, followed by the automotive sector at 24%. Logistics accounts for 8%, while IT & software and services each account for 6%. Appliances account for 5%, and machinery and equipment account for 4%. The origin of active projects as of September 2025 is led by the United States with 130 projects, followed by Asia with 124 projects, and Europe with 59 projects. The remaining 70 come from various countries, including Argentina, Canada, the UAE, and Tunisia, among others.

Nuevo Leon’s competitive position relies on its infrastructure, location, and talent pool. Monterrey is located only 153 miles from the nearest United States border crossing.

The state features over 250 industrial parks. Logistics are supported by the Port of Colombia-Laredo crossing, which is the second most important border crossing in Mexico. The customs process at the Port of Colombia allows trade with the United States in an estimated 20 minutes, compared to the estimated 5 hours required at other standard ports. The state’s industrial development is fostered by 15 industry clusters that involve the state government, the private sector, and universities.

The state is an educational center, hosting over 150 universities and ranking first in Mexico for dual education. The largest engineering school in northern Mexico is located in the state (UANL). The government is also promoting the Supply Chain Hub, a digital platform that connects over 1,500 registered local suppliers 32 with purchasing companies.

The state government is addressing infrastructure needs through public works investment, projecting a total of MX$105 billion (US$5.7 billion) in infrastructure spending. Projects include the construction of new highways to connect the state, such as the new Nuevo Periferico highway and the new road to the International Airport. A total of MX$37 billion has been invested in the new Metrorrey monorail lines, L4 and L6, intended to connect the metropolitan area and serve an estimated 250,000 daily users. Improvements to the public bus transport system involve an investment of MX$269 billion and have completed the bidding for 1,300 new bus units.

FIFA World Cup an Opportunity for

Nuevo Leon

The local government considers the FIFA World Cup 2026 to be a strategic opportunity for value and employment creation. The event is projected to generate an economic spillover across Mexico exceeding MX$10 billion. Monterrey, as a host city, is estimated to see an economic impact of around US$5 billion and the creation of 7,000 direct jobs.

RESHAPING AUTOMOTIVE SUPPLY CHAINS THROUGH TRADE, TECHNOLOG Y ADOPTION

Mexico is consolidating its position as a strategic hub for North American automotive production amid geopolitical uncertainty and ongoing supply chain challenges. The country has become a top nearshoring destination, supported by the USMCA.

However, the industry faces regulatory and trade pressures. According to INEGI, vehicle production fell 6.1% and exports decreased 0.3% in September 2025, reflecting tariff impacts and weaker US demand. “About 87% of Mexican automotive production is exported, and most of it goes to the United States,” said Julio Galván, Economic Studies Manager, INA, during the Mexico Business Summit 2025.

Mexico’s automotive sector is tightly integrated with the US market. “Every vehicle manufactured in Mexico crosses the border eight times before reaching the final consumer,” said Felipe Villarreal, CEO, Alian Plastics, highlighting the need for flexible supply chains and strategic planning.

The 2026 USMCA review is expected to tighten rules of origin and reduce reliance on Chinese components, increasing compliance demands and reshaping supply strategies. “Tariffs are pushing OEMs to replace imports with local products,” said Manuel Montoya, CEO, CLAUT. He added that sourcing raw materials from the EU or Asia is becoming costlier and more complex, making supply chain flexibility essential.

At the same time, the revised framework is expected to strengthen Mexico’s trade

advantages, deepen regional integration, and prioritize North American content. “regionalizing supply chains is complex and can take one and a half to two years. Starting now is crucial,” said Villarreal.

The sector is also embracing AI, automation, and data-driven operations. “A solid manufacturing base is needed before implementing AI or digitalization,” said Montoya. “Investments in AI must go hand in hand with investments in human talent,” added Villarreal.

Digital integration is increasing exposure to cyber risks. “For suppliers, cybersecurity investments can determine whether they remain Tier 1 partners,” said Galván.

Electrification is transforming Mexico’s industry. Domestic EV sales grew from 24,000 units in 2020 to over 124,000 in 2024, with projections exceeding 130,000 in 2025, according to Latam Mobility. OEMs are expanding EV assembly, and electronics manufacturing services are expected to grow at a 10.6% CAGr through 2030. Developing a local EV supply chain, particularly for batteries, power electronics, and storage systems, remains a priority. “EV adoption will drive the expansion of charging infrastructure,” said Montoya.

Despite challenges, Mexico maintains strong competitive advantages, including a skilled workforce, predictable costs, modern clusters, and proximity to the US market, said Odracir Barquera Salais, Director General, AMIA.”

SWEDISH INVESTMENT STRENGTHENS MEXICO’S AUTOMOTIV E INDUSTRY

Sweden views Mexico as a strategic partner and a key market in the region, says Alexander Peyre, Counselor at the Embassy of Sweden. Swedish companies continue to expand operations in Mexico, deepening supply chain integration and strengthening collaboration in advanced manufacturing and automotive technologies.

“By

sharing best practices and participating in trade programs, we can build a future-ready manufacturing industry in Mexico”

Paolo Veglio Country Manager | Hexagon

in trade programs, we can build a futureready manufacturing industry in Mexico.” He highlights that Mexico’s manufacturing ecosystem provides ideal conditions for developing high-value solutions.

Mexico is now Sweden’s second-largest export market in Latin America. The EU-Mexico Free Trade Agreement and USMCA have boosted trade flows and encouraged new investment, particularly in sectors where Sweden is globally competitive, including automotive, energy, IT, and healthcare. Mexico’s skilled workforce, cost competitiveness, and strategic location continue to attract Swedish companies seeking access to both North and South American markets.

According to the Ministry of Economy, Sweden’s cumulative investment in Mexico reached US$3.047 billion between 1999 and 2024, almost evenly split among new investments, reinvested earnings, and intercompany accounts. In 2024 alone, Swedish firms invested US$42.2 million, with Chihuahua (US$11.9 million), Aguascalientes (US$6.65 million), and Puebla as the primary destinations. More than half of these investments—54%—were directed to manufacturing, particularly transport equipment.

“The Swedish industry is synonymous with innovation and sustainability,” says Helena Carlsson, Trade Commissioner and Country Manager for Mexico, Central America, and the Caribbean at Business Sweden. She notes that this focus aligns closely with Mexico’s push for competitive and responsible industrial growth. “Behind every machine and technology, there are people,” she adds, emphasizing the role of human capital in productivity and collaboration.

“Our challenge is twofold: investing in both technology and talent,” explains Paolo Veglio, Country Manager, Hexagon. “By sharing best practices and participating

Companies such as Autoliv have established a strong manufacturing presence. Autoliv, a global leader in automotive safety systems, operates seven plants in Mexico. “Autoliv invests in Mexico to remain cost competitive. The country is a model for our supply chain,” says Kevin Fox, President, Autoliv Americas. He adds that Mexico’s competitive business environment and collaboration between Swedish and local suppliers have strengthened regional supply chains.

Hexagon, specializing in digital reality and industrial metrology, also regards Mexico as a strategic base for innovation and production, operating two plants serving automotive and aerospace clients.

Bilateral trade reflects these industrial ties. In 2024, Mexico exported US$20.2 million in machinery and data processing units to Sweden, while Sweden imported US$128 million in automobiles and passenger vehicles—9.06% of Sweden’s total global imports in this category.

Peyre emphasizes that the partnership goes beyond investment. “Swedish companies in Mexico uphold the high standards of their home country, supporting the green

transformation of Mexican industry,” he says, highlighting shared commitments to sustainable manufacturing, responsible business practices, and technology-driven productivity.

Mexico’s broader investment climate reinforces this collaboration, with total FDI

reaching a record US$36.87 billion in 2024, up 1.1% from the previous year.

“We were welcomed in Mexico with open arms, reflecting the country’s commitment to innovation,” adds Fox, underlining the longterm alignment between Swedish firms and Mexico’s industrial policies.

BALANCING THE ENERGY MIX FOR SUSTAINABLE MANUFACTUR ING GROWTH

As Mexico accelerates its industrial expansion under the nearshoring wave, the country’s energy system faces a defining test: how to meet rising manufacturing demand without compromising affordability, reliability, or climate goals. For a country where natural gas fuels nearly 60% of total electricity generation, the debate is no longer about replacing fossil fuels overnight but about finding a sustainable balance between gas and renewables that secures growth while advancing decarbonization.

“We are in a new stage in Mexico’s energy history,” said Julio Valle, General Director, Mexican Energy Association (AME) during his participation in the “Balancing the Energy Mix: Natural Gas and renewables for Sustainable Manufacturing Growth” panel at Mexico Business Summit. “We see it with optimism because there are now clear tools that provide opportunities to invest and solve structural issues. The government is learning from these mechanisms too, and everything indicates we will be able to take them where they are most needed. What’s missing is better communication and faster processes, so they are not constrained by rigid structures that no longer follow today’s market logic.”

Mexico’s energy transition is unfolding in real time. renewables accounted for just 21.6% of total generation in 2024, with solar and wind contributing less than 12%. Yet even at these levels, their contribution has already helped offset gas imports worth hundreds of millions of dollars annually. The government’s goal of reaching 45% clean power generation by 2030 reflects both environmental ambition and

economic necessity. However, the speed of industrial growth, particularly in automotive, electronics, and manufacturing corridors, has strained an electricity grid still heavily dependent on imported US gas. To achieve this goal, Mexico’s Ministry of Energy (SENEr) recently launched an open call for private investment in renewable energy projects aimed at adding 5,970 megawatts (MW) of new power generation capacity across six priority regions. The initiative seeks to attract approximately US$7.14 billion in investment.

Mexico’s challenge lies in infrastructure. While generation capacity has expanded, transmission and distribution networks have not kept pace with demand. Grid congestion, especially in the Bajío and northern regions, is limiting the ability to connect new renewable capacity. “The most urgent gap lies in transmission and distribution,” said Mauricio Herrera, Executive Director, Mexican Wind Energy Association (AMDEE). “There is no other way around it. Without sufficient investment, we cannot increase installed capacity, and we won’t be able to deliver energy to where it’s most needed.”

Distributed generation has emerged as a practical solution, allowing industrial users to generate electricity on-site or nearby. regulatory reforms now make it easier for

companies to develop self-supply projects between 0.7MW and 20MW, while smaller installations are exempt from permitting. This decentralization could prove vital to relieving grid stress and enhancing energy security at the local level. Yet scaling these solutions will require faster permitting, streamlined interconnection, and clearer coordination between regulators, utilities, and investors.

“It includes changes in consumption patterns, energy efficiency, and adopting low-emission technologies, concepts that natural gas addresses perfectly as a bridge for the energy transition.”

Jorge Sandoval Director | Mexican Natural Gas Association

and those can only come from natural gasbased projects.”

At the same time, renewables are proving increasingly cost-competitive and geopolitically advantageous. Analysts argue that pairing gas-fired flexibility with renewable capacity and battery storage could deliver a resilient, lower-emission model suited to Mexico’s industrial future. This would also allow the country to meet decarbonization targets while preserving manufacturing competitiveness under evolving global supply chain standards that prioritize clean energy inputs.

“There’s already some light at the end of the tunnel with CFE’s expansion plan,” Herrera added. “It includes an investment of around US$8 billion in transmission, but the question is whether that investment will be enough and whether it’s focused on the regions that need it most.”

The next phase of Mexico’s transition hinges on achieving the right mix between gas and renewables. Natural gas remains indispensable for ensuring reliability, providing stable baseload power that supports manufacturing operations and complements intermittent renewable generation. Since 2009, gasfired plants have steadily expanded their share, now accounting for 58% of electricity output. More than half of that gas is imported from the United States, a dependency that exposes Mexico to cross-border supply and pricing risks.

“What we most urgently need in the next two or three years is reliability in the grid, because we are in a tight spot right now,” said roberto de la Garza, Partner, Mexican Association of Qualified Suppliers (AMSCA). “The government recognizes this and is making significant efforts, but their results will take around five years. For now, what we need are one- to two-year solutions,

“Energy is no longer an issue handled by the maintenance department,” said Daniel Salazar, President, Cogenera México. “Today, it is a topic discussed at CEOs’ tables and is directly linked to overall business development. The government knows this, recognizes it, and is eager to ease the energy stress our country is facing.”

For policymakers and companies alike, the question is not whether to phase out natural gas, but how to use it more strategically. Advocates describe gas as a “transition fuel,” one that can sustain industrial reliability while buying time to expand renewable infrastructure. “The energy transition goes beyond simply switching from fossil sources to renewables,” said Jorge Sandoval, Director, Mexican Natural Gas Association. “It includes changes in consumption patterns, energy efficiency, and adopting low-emission technologies, concepts that natural gas addresses perfectly as a bridge for the energy transition.”

Mexico holds enough proven and probable gas reserves to meet four decades of current demand, but underdeveloped production and storage infrastructure limit its potential to serve domestic needs. “In the natural gas sector, we identify three critical areas: pipeline development, storage, and last-mile distribution networks,” Sandoval added. “The lack of infrastructure is a key issue. Once this development takes place, you’ll see economic growth in the regions where

gas becomes available, creating incentives for further investment.”

reinforcing gas pipelines, storage terminals, and interconnections could reduce import dependence and provide a firmer base for renewable integration. However, environmental scrutiny is intensifying. Methane emissions, which have up to 80 times the heat-trapping power of CO2 over 20 years, are undermining gas’s transitional credentials. Industry leaders are increasingly emphasizing the need for better leak detection, flaring reduction, and carbon accounting to align natural gas operations with global sustainability standards.

The convergence of gas and renewables is reshaping corporate and investment strategies. Utilities are testing hybrid models that combine combined-cycle gas plants with co-located solar or wind capacity, while industrial offtakers are exploring long-term power purchase agreements (PPAs) that blend renewable and gas-backed supply. Advances in energy storage are accelerating this shift, offering the flexibility needed to balance variable solar output and stabilize the grid during demand peaks.

Battery energy storage systems (BESS) are poised to play a central role. By displacing

fossil generation during peak hours and smoothing renewable integration, they could substantially enhance grid stability. CFE’s transmission modernization plan, worth over MX$164 billion, includes digital grid controls, fiber optic networks, and predictive maintenance systems designed to accommodate these new technologies.

Mexico’s ability to sustain industrial growth through 2030 will depend on coordinated planning between the public and private sectors. The nearshoring-driven manufacturing boom has magnified energy demand in regions where infrastructure is weakest. Addressing this imbalance will require new pipelines, transmission lines, and storage facilities, investments that hinge on regulatory clarity and predictable returns.

Think tanks such as the Mexican Institute for Competitiveness (IMCO) are calling for a trinational North American strategy to map critical energy corridors, finance interconnections, and secure gas and power flows for industrial hubs. Expanding pipeline capacity to southern states, developing at least five days of national gas storage, and modernizing cross-border links could help Mexico build the resilience needed for sustained growth.

MEXICO’S ENERGY EQUATION: PRODUCERS, OFFTAKERS, POWER ING GROWTH

Mexico’s electricity system is confronting an inflection point in which producers, industrial offtakers, regulators, and investors must re-think pricing, contracts, and regulations if growth is to be powered affordably and sustainably. The marketplace is being reshaped by recent reforms, evolving demand patterns, and new risk dynamics, all of which are likely to dominate conversation among energy experts in the near term.

As Alejandro Peón, Country Manager, Naturgy, noted during the “Mexico’s Energy Equation: Producers, Offtakers, and the Price of Powering Growth: panel at Mexico Business Summit, “We need to stay positive because we are living in a moment of opportunity. Demand is growing, and it is growing because the market for goods and products is seeing new potential driven by nearshoring and the U.S. market.”

The design of Mexico’s electricity market today strongly influences pricing for largescale generation and distributed generation (DG). Under the Electricity Sector Law (LSE), the government mandates that CFE provides at least 54% of generation injected into the national grid, reserving the remainder for private and mixed investment. Private sector participation is still allowed, but under more constrained structures, including mixedinvestment schemes, long-term contracts

focused on delivery through or to CFE, or self-supply/self-consumption models subject to tighter conditions.

Today we have alternatives we didn’t have before. The policies opened in recent years have allowed us to see energy as something where we can actually reduce costs.”

Norma Rodríguez Energy & Project Procurement Manager | ARZYZ

“the key lies in implementation and in publicprivate collaboration. It is said that 29GW must be installed by 2030, clearly, the public sector alone cannot do it. The private sector will have to collaborate strongly, but for that, we need a system-level plan that ensures the entire system meets its stated goals.”

According to Jonathan Pinzón, VP of External Affairs and Business Development, Valia Energía, “We cannot ignore that the current legal framework redefines how generation capacity expands, introducing binding planning while keeping successful mechanisms like selfconsumption, long-term producer models, and the wholesale market. right now, we have a series of patches, self-consumption works and solves some short-term needs, but we really need to reactivate large-scale investment engines that bring the competitiveness the industrial sector requires.”

The permit exemption threshold for small DG systems has been raised from 0.5MW to 0.7MW, offering modest regulatory relief. Meanwhile, storage systems are now recognized expressly under the new regulatory framework as strategic assets, allowed to participate in the wholesale electricity market, provide ancillary services, and help with system reliability. These legal changes are intended to give some clarity and stability, yet many investors remain cautious because regulatory authority has been centralized under the new National Energy Commission (CNE) and the reforms carry new obligations around permitting, interconnection, and plan alignment with government energy planning instruments. Sources suggest that financing, project structuring, and risk of policy reversal are top of mind.

Javier

Pastorino,

For industrial offtakers, the changing market design is not a passive background; it is actively shaping demand profiles and energy procurement behavior. Many large consumers are building in more flexibility, combining grid power with localized DG (solar, combined heat power, small gas-fired plants or self-supply), often with storage, so that continuity, cost, and carbon goals can be met more reliably.

“The vocation of companies has always been to lower costs, it’s in our DNA,” said Norma rodríguez, Energy & Project Procurement Manager, Arzyz. “Today we have alternatives we didn’t have before. The policies opened in recent years have allowed us to see energy as something where we can actually reduce costs.”

Because of newer rules, surplus energy from self-generation projects (especially those connected to the grid) must often be sold only to CFE under terms defined by the regulator, limiting flexibility but creating clearer counterparties. These offtakers are increasingly demanding contracts that lock in price stability, incorporate fuel or input cost escalators, allow firm availability under reliability metrics, and account for intermittency risk in their supply mix. They favor hybrid supply models in which DG plus storage work together, rather than relying on a single source.

Managing Director of Siemens Energy Latam North,

stressed that

“The key technologies right now, cogeneration, distributed generation, hybrid systems, are not perfect solutions, but they are what we have,” added Peón. “We are in a complex world full of opportunities and deficiencies, and the best we can do is cluster solutions among industries so we find shared efficiencies across logistical hubs rather than isolated fixes for each factory.”

The willingness to invest in DG is rising, especially for industrial users motivated by supply risk, cost volatility, and ESG pressures. Producers and offtakers are co-developing contractual innovations and risk-sharing frameworks to manage uncertainties around permitting, fuel/gas supply, and the inherent variability of renewables.

Alejandro de Keijser, Energy and Sustainability Director, Deacero, pointed out that “one pending issue is enforcing coverage requirements. Each load-responsible entity must guarantee its contracts. Even with binding planning, there is still a market mechanism and contracting freedom. Both sellers and buyers must meet certain obligations for the system to function. Enforcing coverage obligations is essential to guarantee reserve margins and avoid over-contracting.”

“The key lies in implementation and in publicprivate collaboration. It is said that 29GW must be installed by 2030, clearly, the public sector alone cannot do it. The private sector will have to collaborate strongly, but for that, we need a system-level plan that ensures the entire system meets its stated goals.”

Javier Pastorino Managing Director Latam North | Siemens Energy

Long-term PPAs (power purchase agreements) with take-or-pay or minimum delivery obligations are being renegotiated to include clauses addressing force majeure, delays in transmission or interconnection, fuel price variation, or dispatch priority. Some contracts now consider capacity payments, or fixed availability payments, to ensure a baseline revenue stream even when dispatch is low.

In distributed generation or self-supply, agreements may include shared risk on surplus energy valuation, curtailment, or penalty for under-performance. Hybrid deals that bundle DG plus storage or onsite generation help smooth the supply variability, and risk exposure is typically shared between

the producer (who must ensure availability or maintain redundancy) and the industrial offtaker (who must accept certain flexibility or sometimes pay premiums for guaranteed reliability).

Green Premiums: Viable or Not?

The growing corporate focus on decarbonization and ESG compliance is transforming the conversation about energy pricing in Mexico. Many industrial offtakers are increasingly willing to accept, or even budget for, a green premium for clean energy, especially if the premium can be tied to recognized instruments (clean energy certificates, carbon credits) and if there is transparency in pricing. This is particularly the case for companies with export exposure or supply chains in North America or Europe, where ESG metrics affect market access, cost of capital or brand value. The presence of policy incentive tools, clean energy obligations, or regulation that mandates use of cleaner energy or penalizes high carbon intensity make the green premium more credible. Producers respond by designing renewables projects, hybrid plants, or DG offerings whose financing can be justified by this premium, especially when terms allow higher long-term stability or risk-sharing that mitigates technology or regulatory uncertainty.

Strategic investments and policy alignments across the energy ecosystem are essential if Mexico is to deliver competitive, sustainable industrial power. Critical among these are streamlining and clarifying permitting and interconnection rules, ensuring that transmission is expanded where load centers (industrial corridors) are growing, and that grid investment keeps pace with decentralized generation and storage. r egulators must offer stable rules for DG, storage participation, surplus energy valuation, and environmental permitting. Producers need to invest in resilient fuel logistics, flexible generation plants, hybrid systems, digital tools for forecasting and operations optimization. Offtakers should be capable of participating in energy markets or negotiating contracts that reward reliability, carbon performance, and flexibility.

GROWTH PERSPECTIVES FOR NORTH AMERICA’S POW ER MARKETS

As North America enters a decade defined by electrification and surging industrial demand, the region’s power markets are facing a complex mix of opportunity and constraint. In his presentation, “Growth Perspectives for North America’s Power Markets: What are the challenges ahead?”, Juan Pablo Londoño, Principal Analyst for the Americas Power Markets, Wood Mackenzie, examines how structural shifts, from new federal policies to accelerating large-load growth, are reshaping the outlook for generation, storage, and investment across the continent.

Wood Mackenzie’s latest power market outlook projects steady demand growth in the United States, driven by new industrial projects, data centers, and electric vehicle infrastructure. More than 147GW of highprobability new load, equivalent to roughly 20% of current US peak demand, is now in advanced development or near-term forecasts. Utilities have already committed to over 17GW of large loads under construction and another 99GW in the pipeline. This rapid acceleration is testing the flexibility of regional grids, with markets like MISO and SPP better positioned to absorb new demand than more capacity-constrained regions such as PJM, SErC, and ErCOT.

The report also highlights how supply chain constraints are becoming a defining challenge for new generation projects. Global gas turbine manufacturing capacity is now stretched thin, leading to delivery times of up to five years for orders placed in 2024. This tightness limits the ability of North American utilities to bring new gasfired capacity online through the rest of the decade, raising concerns about reliability and reserve margins amid growing demand.

At the same time, clean energy development is being reshaped by US policy. The passage of the One Big Beautiful Bill Act (OBBBA) has muted the near-term outlook for renewables, cutting Wood Mackenzie’s solar forecast by 12%, or about 60 GW, over the next decade.

The onshore wind outlook also declined by 21% after the law ended production tax credits for projects placed in service after 2027. However, developers are racing to meet remaining tax credit deadlines, pushing a near-term surge in installations through 2027 and 2030. For storage, the story is more nuanced: demand remains strong, but the sector faces a major supply chain shift as FEOC restrictions take effect, incentivizing the move toward domestic manufacturing.

The storage market, in particular, illustrates the transition underway. With new tax incentives for domestic content and sustained eligibility for the investment tax credit (ITC), utility-scale and residential systems alike are gaining ground. Developers are accelerating projects to secure Chinese components before tariffs tighten, while United Statesbased suppliers race to ramp up production. Wood Mackenzie forecasts storage additions holding steady even under more restrictive conditions, supported by continued demand growth and renewable integration needs.

Mexico, meanwhile, presents a different but equally complex landscape. Peak demand there is expected to climb from 51GW in 2024 to 90GW by 2050, a 2.6% compound annual growth rate, requiring a balanced mix of new thermal and renewable capacity to maintain CENACE’s planning reserves and clean energy targets. Natural gas generation continues to dominate Mexico’s power mix, but renewables are set to gain traction over the next decade. Still, with turbine delivery backlogs and uncertain compensation mechanisms for grid-injected surpluses under the new Electricity Sector Law (LESE), developers face a challenging investment environment.

There are, however, signs of a more collaborative approach taking shape. “We’re seeing a much more open attitude toward private participation from the government, a real willingness to invite the private sector to collaborate with CFE and ensure that supply

strategies are ready and available on time,” said one industry observer. “It represents a positive change. Much progress has been made, though there are still pieces that need to be fully understood.”

Another key factor underpinning Mexico’s energy outlook is its privileged access to low-cost natural gas, one of the cheapest in the world, thanks to strong commercial ties with the United States. “While that does carry a degree of geopolitical risk, it’s a manageable one that also highlights areas of the industry still needing attention, such as the development of strategic gas storage,” said the same source. “Natural gas will remain a fundamental pillar, not only for new installed capacity but also in how it supports renewable operations. Even as storage becomes an essential part of the market, expected to reach around 30% of

new capacity compared with wind and solar, natural gas, increasingly flexible and efficient, will continue to play a central role in helping the Mexican system integrate clean capacity.”

Taken together, these dynamics suggest a region in transition: a power sector simultaneously expanding and straining under the pressures of policy shifts, industrial demand, and infrastructure constraints. For investors and utilities, the message is clear, planning for the next decade will require agility, diversified portfolios, and a longterm view of technology, regulation, and market fundamentals. As Londoño’s analysis underscores, the path forward for North America’s power markets will depend not just on building new capacity, but on how effectively the region can align investment, policy, and innovation to meet the energy demands of a rapidly electrifying economy.

KEY TRENDS SHAPING AIR CARGO, AIRPORT INFRASTRUCTURE IN MEXICO

As Mexico consolidates its position as a strategic trade hub in the Americas, air cargo emerges as a critical link for high-value and time-sensitive goods. Although it remains a minor component of national freight, representing just 0.12% of Mexico’s total cargo movement in 2023, according to CANACAr, it plays an outsized role in connecting industries, accelerating exports, and ensuring supply chain continuity. Amid the nearshoring wave and regional integration, aviation is becoming indispensable to manufacturing, e-commerce, and cross-border logistics.

The State of Mexico’s Air Cargo Sector

According to the Mexican Institute of Transportation (IMT), 2024 marked the strongest year for air cargo and passenger movement since 2019. Aviation handled 240,420t of domestic and 822,710t of international freight, surpassing prepandemic levels by 23.7% and reaffirming its role as a cornerstone of logistics and trade.

However, data from the Ministry of Infrastructure, Communications, and

Transport (SICT) and the Federal Civil Aviation Agency (AFAC) shows that by August 2025, the sector faced a 4.8% year-on-year decline, totaling 103,576t. Between January and August, cumulative volumes dropped 4.4% to 800,134t, reflecting post-pandemic normalization and capacity shifts within the Metropolitan Airport System (SAM).

The Felipe Ángeles International Airport (AIFA) continues to dominate operations, managing 35,737.8t in August 2025, 34.5% of national air cargo, despite an 8.8% annual decline. The Mexico City International Airport (AICM) followed with 20,486.7t, consolidating its 19.8% share, while Guadalajara and Monterrey remained top contributors. Queretaro, Tijuana, Cancun, and Toluca also play key roles, although Toluca suffered a 25.3% drop.

“OMA operates airports across northern and central Mexico, where about 80% of nearshoring activity occurs. With major hubs like Monterrey, Juárez, and Chihuahua, we are making significant investments to support growing industrial demand,” says

r icardo Dueñas, Director General, Grupo Aeroportuario Centro Norte (OMA).

Infrastructure Expansion and Modernization

The SICT has allocated MX$126.6 billion (US$6.61 billion) to rehabilitate and expand 62 airports. Yet expanding capacity alone cannot resolve the country’s logistics bottlenecks. To truly enhance competitiveness, last-mile and multimodal connections with ports and manufacturing hubs must be strengthened.

AIFA is spearheading this transformation. Its 2025–2030 development plan expands its cargo area from 16 to 22 warehouses, boosting capacity from 570,000t to 810,000t annually. The enlarged parking platform will allow nine freighters to operate simultaneously by 2026, including heavy models such as the Boeing 747-8F. Long-term projections envision three runways, one dedicated to cargo, and a terminal capable of handling up to 3 million t of freight per year.

Meanwhile, AICM is undergoing a MX$8.5 billion (US$460 million) renovation ahead of the 2026 FIFA World Cup. The project, which is 15% complete, aims to reach 70–80% progress by mid-2026. Despite these efforts, AICM remains constrained. “We need to urgently improve infrastructure, terminals, taxiways, and overall facilities,” says Peter Cerdá, regional Vice President, ALTA.

E-Commerce, Nearshoring, and New Trade Dynamics

E-commerce has become a defining force in global air freight. According to The International Air Cargo Association (TIACA), it accounted for about 20% of global air cargo volumes in 2024, a figure expected to double within a decade. Yet regulatory shifts have disrupted the sector. The end of Mexico’s de minimis import exemption in May 2025 made business models used by fast-fashion platforms like Shein and Temu unviable, leading to a 30% drop in cargo capacity. Similarly, the US suspension of de minimis privileges caused an 81% collapse in postal

traffic, with Correos de México among the 88 postal operators suspending their services in the United States.

Despite these setbacks, e-commerce and social commerce continue to fuel longterm demand. In Latin America, over half of shoppers in Mexico, Brazil, and Colombia now use social commerce platforms. New payment models, from digital wallets to convenience store coupons, support sustained demand for fast, cross-border delivery. This evolution has “created sustained demand for efficient air cargo logistics services” throughout the region, reports Mordor Intelligence.

“We use advanced systems not only to track shipments but also to assess their vulnerability to movement, temperature, and humidity, especially for sensitive goods like flowers and raw materials. AI now allows us to monitor these conditions in real time. E-commerce growth has accelerated demand for speed and data-driven logistics. Using predictive consumption models, we anticipate where inventory will be needed, enabling deliveries within hours. Sustainability is a key pillar of our strategy, from more efficient air fleets and electric vehicles to recyclable materials and social initiatives supporting health, education, and disaster relief,” states Jorge Torres, Vice President, FedEx Express México.

At the macro level, Mexico’s manufacturingdriven economy, responsible for 80% of national activity, positions it as a logistics powerhouse. Its 12 free trade agreements and nearshoring advantages have boosted air freight flows connecting North America with Central America and the Caribbean. regional integration efforts underpin US$4.5 billion in annual trade between Central America and the United States, equivalent to 4% of the region’s GDP.

“Our five-year plan includes MX$16 billion in investments across 13 airports, focusing on cargo expansion and industrial park development. Monterrey Airport alone saw cargo traffic rise 14-15% this year, reflecting the region’s strong industrial growth. Nearshoring is a unique, time-sensitive opportunity, but

it also brings infrastructure, energy, and regulatory challenges that we must address now to fully capitalize on it,” says ricardo Dueñas, Director General, Grupo Aeroportuario Centro Norte (OMA).

Digitalization and the Future of Air Cargo

As demand evolves, digital transformation is redefining the logistics equation. IATA’s Vision for the Future of Air Cargo Facilities 2025 calls for a decisive shift toward smart, automated, and sustainable cargo hubs. The next generation of air facilities, IATA notes, will rely on AI, robotics, real-time data visibility, and sustainable design to optimize capacity and efficiency.

The association identifies six key technology pillars: intelligent analytics, robotics, wearables, sustainability, transparency, and digital process automation. AI-driven predictive maintenance and capacity planning will deliver immediate gains, while IoT sensors and zero-emission ground vehicles will transform ground operations.

“In sustainability and digitalization, especially in the air sector, Europe is already ahead, fully paperless since last year and preparing to implement digital negotiable documents expected to take effect next year. For Mexico, moving toward a paperless system will

require deeper digital integration. This means strengthening data traceability, cybersecurity, and end-to-end digitalization across the entire supply chain to ensure transparency, efficiency, and compliance with international standards,” states Victor Cruz, Vice President, Asociación Mexicana de Agentes de Carga (AMACArGA).

Initiatives such as ONE record and Smart Facility Operational Capacity (SFOC) are standardizing data exchange and visibility across the supply chain, improving interoperability among airports, airlines, and freight forwarders. “Technology is not just an enabler of efficiency, it is the foundation of resilience, transparency, and sustainability for the next era of global air logistics,” IATA says.

“Digitalization and data analysis are transforming air cargo operations by reducing paperwork, accelerating processes, minimizing errors, and enhancing customer satisfaction. AI and analytics help forecast demand, optimize routes, manage resources, and enable real-time monitoring for greater supply chain efficiency. At the airport, around 30 systems handle flight operations, access control, security, and logistics. AI-driven automation boosts productivity, improves slot use, and streamlines both passenger and cargo management,” adds General Isidoro Pastor, Director General, AIFA.

OCEAN FREIGHT: MEXICO’S GATEWAY TO THE WORLD

Maritime transport remains the backbone of Mexico’s cargo movement, and now, amid global trade volatility and geopolitical shifts, the country’s ports are stepping up to become engines of national growth and global connectivity.

According to CANACAr, 29.63% of Mexico’s domestic cargo moved by sea in 2023, while ports handled a record 9.38 million TEUs in 2024, up 12% year-on-year, reports SEMAr’s General Coordination of Ports and Merchant Marine (CGPMM). Of this, 99% corresponded to international trade, equivalent to 59.1 million t of containerized cargo, underscoring

Mexico’s deep integration into global supply chains and the strategic role of its maritime gateways.

“In 2024, Mexican ports handled over 272 million tons of cargo, with more than 80% being commercial, showing steady growth. Preliminary 2025 data indicate mixed trends due to global trade disruptions, while the Pacific coast continues to handle 60-70% of total volume. Port modernization boosts economic growth by creating thousands of jobs and driving regional development through expanded infrastructure and logistics services,” says José Manuel Urreta,

President, Cámara Mexicana de la Industria del Transporte Marítimo (CAMEINTrAM).

Global Context: A Fragile Maritime Outlook

Global shipping, which moves over 80% of the world’s merchandise trade, is entering a period of fragile growth, rising costs, and mounting uncertainty, according to UN Trade and Development (UNCTAD). After firm expansion last year, seaborne trade is projected to nearly stall in 2025, with volumes growing just 0.5%. Long-distance rerouting caused by geopolitical tensions drove a record 6% increase in ton-miles in 2024, but this came at the cost of efficiency and stability.

Political tensions, new tariffs, and shifting shipping routes are redefining the geography of global trade. The United States and several trading partners have introduced new measures, including tariffs and port fees for certain foreign-built or foreign-operated vessels, which may further affect costs and routing decisions. These shifts have led to more rerouting, skipped port calls, longer journeys, and higher overall transport costs. Energy shipping is also evolving as coal and oil volumes decline due to decarbonization efforts, while gas trade continues to expand.

Modernizing for Competitiveness

The Mexican government has launched an ambitious national plan to modernize and expand six key ports, Ensenada, ManzanilloCuyutlan, Lazaro Cardenas, Acapulco, Veracruz, and Progreso, combining MX$55.2 billion (US$2.96 billion) in public funding with MX$241 billion (US$12.9 billion) in private investment. The objective: to transform Mexico’s port system into a global logistics leader capable of handling rising trade volumes, attracting new investment, and enhancing regional development, MBN reports.

Digitalization is already playing a key role in Mexico’s port transformation. According to Mexico’s National Customs Agency (ANAM)

data, Maritime single windows and port community systems are reducing bottlenecks and increasing efficiency in leading ports such as Manzanillo and Veracruz, where customs revenue grew 24% year-on-year to MX$493.8 billion (US$26.8 billion) between January and August 2025. Manzanillo alone accounted for MX$124.4 billion (US$6.8 billion), a quarter of all maritime customs revenue.

“Ports must move beyond cargo transfer to become integrated, tech-driven hubs that connect industrial and supply chains. Achieving this requires developing global standards, training specialized talent, and advancing low-carbon maritime infrastructure powered by new technologies to ensure longterm, sustainable growth,” shares Jiawei Mei, Operational Director, COSCO Shipping Lines.

Addressing Bottlenecks and Building Capacity

Despite record cargo volumes, Mexico’s port system remains highly dependent on a few nodes, Manzanillo, Lazaro Cardenas, Altamira, and Veracruz handle over 91% of international container traffic. This concentration poses operational and capacity challenges as demand surges with nearshoring and trade diversification.

Fitch ratings recently downgraded its midyear outlook for North American ports to deteriorating, citing tariff uncertainty and sluggish economic activity. Yet Latin America remains more resilient thanks to long-term contracts and project pipelines. In this context, Mexico’s focus on port decentralization and multi-port investment could mitigate supply chain risks and ease congestion, reports MBN.

Environmental and digital transitions are central to the port agenda. The IMO’s upcoming Net-Zero Framework will introduce a global GHG pricing mechanism by 2028, demanding significant investment in alternative fuels and clean port infrastructure. Only 8% of the world’s fleet is equipped for alternative fuels, underlining the urgency of modernization.

Private operators like APM Terminals are leading with sustainability investments. The company announced a MX$3 billion (US$163 million) modernization plan for Puerto Progreso to enhance efficiency, integrate renewable energy, and generate over 1,300 jobs.

“While there are still bottlenecks and areas for improvement, the key to overcoming them lies in creating conditions that allow cargo to move more efficiently. This requires close coordination among authorities, customs, ports, and customs brokers, to align processes and refine operational details. Strengthening this collaboration is essential to achieving a more agile and efficient flow of goods across the country,” says Emmanuel Neri, Head of

the Investment Promotion and Business Development Unit, Corredor Interoceánico del Istmo de Tehuantepec (CIIT).

Collaboration and Vision

UNCTAD and SEMA r both stress that the future of maritime transport will depend on public-private collaboration, coordinated investment, and digital integration across the logistics chain. For Mexico, this means aligning federal, state, and industry efforts to turn ports into anchors for economic growth, employment, and innovation.

“We must be aware of the impact we leave on the country and local communities. When discussing infrastructure modernization, it is essential to integrate decarbonization into Mexico’s port operations. Moreover, ports should be viewed not only within Mexico’s domestic context but as part of a broader regional supply chain. Given its strategic geography on both the Pacific and Atlantic coasts, Mexico is ideally positioned to become a key regional logistics hub, strengthening its role in global trade,” states Beatriz Yera, Managing Director, APM Terminals.

MEXICO’S MULTIMODAL CAPABILITIES FOR NORTH AMERICAN I NTEGRATION

As Mexico deepens its role within the North American logistics ecosystem, its capacity to modernize and integrate multimodal infrastructure has never been more pivotal. With the trade-corridor momentum triggered by near-shoring and shifting global supply chains, the country stands at a critical juncture: either evolve its transport and logistics framework, or risk being relegated to a peripheral role.

“Every year, companies invest to expand capacity and improve processes, often driven by new technologies. While many claim Mexico lacks infrastructure, the reality is that nearly every logistics company is focused on increasing capacity, developing new business opportunities, and reducing costs through technology and operational efficiency”

Mexico already features prominently in continental trade flows, yet achieving “real” integration into the North American logistics system requires more than volume-handling. It demands interoperability, digital connectivity, and alignment with US/Canadian systems.

Sergio Castañeda Owner BTX

Station El Paso | BTX Global Logistics

“Mexico, the United States, and Canada share highly integrated infrastructure, yet border processes remain a key bottleneck to increasing trade. Efficiency can improve not only through new projects but by optimizing existing capacity with standardized procedures such as joint inspections and international crews. Expanding these models and advancing OEA programs could make Mexico’s border as seamless as Canada’s, where destination-based, non-intrusive inspections enable smooth, highvolume rail crossings,” says Francisco Fabila, Director General, Ferrovalle.

Mexico is investing billions in its transport system, rail, roads and ports, with the explicit aim of boosting trade and economic growth. However, as a proportion of total public spending, physical investment will represent just 9.5% in 2026, up only 0.4% from 2025’s share, reads a report from México Evalua. For context, in 2014 investment accounted for 18% of budgetary outlays, nearly double the current share.

Strengthening Mexico’s Multimodal Capacity

The USMCA provides the framework for a highly integrated continental freight system, and cross-border rail momentum continues to grow. Between January and October, Mexican railroads moved over 1 million carloads and intermodal units, which represents a 4.4% decline compared with the same period in 2024.

To truly integrate with North America, Mexico needs to harmonize freight, customs, and cross-border regulations with the United States and Canada, including technical standards such as signaling systems, container tracking, and security protocols, reports JUSDA.

At the same time, the country needs to expand strategic multimodal corridors that connect industrial hubs with North American markets through efficient combinations of rail, ports, and highways to reduce transit time and costs. Achieving this also requires stronger institutional coordination among federal and state authorities and private logistics operators, ensuring system-wide efficiencies instead of isolated infrastructure improvements.

“Mexico, as part of North America, the world’s most dynamic economic region, maintains the largest trade relationship in history with the United States, nearing US$800 billion annually. Despite challenges, investment and trade keep growing, driven by strong industrial activity. Key opportunities lie in improving infrastructure, regulation, and logistics to enhance interconnectivity and

streamline cross-border processes, shifting inspections to origin and destination points to fully leverage regional integration,” states rodrigo Morales, Vice President of Project Delivery Latin America, AECOM.

Modernizing the Network

For logistic operators, rail remains the backbone of high-volume freight movement, particularly for North American integration. In April, Mexico announced a US$7.72 billion investment to modify its rail network, which includes 774km of new tracks in 2025, 70km of freight rail for the Mayan Train, and 170km of freight rail along the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT).

“Every year, companies invest to expand capacity and improve processes, often driven by new technologies. While many claim Mexico lacks infrastructure, the reality is that nearly every logistics company is focused on increasing capacity, developing new business opportunities, and reducing costs through technology and operational efficiency,” shares Sergio Castañeda, CEO, BTX Global Logistics.

For operators, scaling rail capacity and diversifying routes is critical, says JUSDA. This requires adding kilometers of track, while enabling heavier axle weights and opening new corridors that support Pacific-Atlantic flows and Mexico-US border connectivity. Furthermore, the industry needs seamless intermodal terminal integration so rail links efficiently with ports and industrial parks, since poor first- and last-mile design quickly turns rail into a bottleneck.

“Investment in infrastructure will continue to strengthen Mexico’s already deep integration with North America, a process that began nearly 30 years ago with the privatization of the rail system. The inauguration of CPKC’s second international rail bridge in LaredoNuevo Laredo this year is another clear example of the growing connectivity and evolution of cross-border rail transport,” says Alejandro Doria, President and CEO, Bulkmatic de México

Modern signaling systems, real-time traffic management, and strong maintenance regimes are also necessary to provide the predictable throughput that logistics users demand, along with regulatory clarity on concession access, standardized tariffs, and open-access terminals to reduce fragmentation across the freight system. Operators must also adapt to strategic shifts brought by initiatives such as the CIIT, which introduces an east–west flow that complements the traditional north-south trade axis, reshaping how cargo moves across North America.

“ r ail transport now connects Mexico City to destinations like Toronto within days thanks to growing collaboration among operators across North America, a complex but successful integration that continues to expand,” says Fabila.

Financial and Governance Schemes

The nodes in a supply chain (ports, terminal hubs, and industrial parks) increasingly differentiate logistics competitiveness. Mexico has committed federal investment of MX$55.2 billion for six strategic ports — Ensenada, Manzanillo, Nuevo Manzanillo, Lazaro Cardenas, Acapulco, and Progreso — to modernize capacity and container handling.

“For investors, legal certainty is essential when developing infrastructure, as these projects often span 20 years or more. Clear and stable regulations, and avoiding overregulation, are crucial. When these conditions exist, financing is not an obstacle; there is strong

interest from private banks and infrastructure investment funds. The government’s role should be to set transparent, straightforward rules that provide confidence for developing key logistics infrastructure, port, multimodal, intermodal, rail, and road terminals alike,” states Doria.

Mexico’s industrial parks, with 477 operating across 28 states and more than 100 under development, together generate about 98% of national manufacturing GDP, reports AMPIP. These parks attract 98% of foreign direct investment in manufacturing, and produce 99% of the country’s manufacturing exports.

“Attracting investment is no longer about cheap land or tax breaks but about regulatory efficiency. Companies seek quick, simple permit processes to start operations faster. In Mexico’s three-tiered system, states and municipalities that streamline environmental, construction, and operational approvals gain a clear competitive edge in attracting investors,” adds Morales.

The parks function as critical logistics platforms by offering ready-to-operate infrastructure for OEMs and suppliers, ensuring compliance with security and ESG standards, accelerating facility setup and operational continuity, and concentrating logistics services with customs-ready operations. Wherever industrial parks are established, manufacturing strength follows, and that growth, in turn, drives further expansion of park capacity. They are not only engines of economic development, but structural nodes that shape and enable Mexico’s multimodal logistics architecture.

THE TECH LOGISTICS REVOLUTION: REDEFINING MEXICO’S SUP PLY CHAINS

As the nearshoring boom intensifies, North American trade is driving a profound transformation in Mexico’s logistics sector. The surging volume and complexity of cross-border trade mean that traditional operational models are no longer sufficient. Technology has shifted from a luxury tool to the central nervous system for companies’ logistics. “It is necessary to fully understand an issue to properly tackle it, and technology is essential to do so,” said Paris Guzmán, IT Manager, Solera Omnitracs, at Mexico Business Summit 2025.

This digital revolution is altering the competitive landscape, operational models, and strategic priorities for logistics companies. “Technological adoption is now essential across the supply chain,” said José Liborio Calderón, Country Manager, Geotab. The most significant digital leaps are moving the industry beyond simple asset tracking and toward predictive, automated, and integrated supply chain management. “Companies should not focus on solving issues in isolation; they would benefit from bringing together all issues under a single platform,” said r odolfo Morales Lagos, Country Manager, Drivin.

In this new environment, real-time supply chain visibility is no longer a luxury but a necessity. Advanced digital platforms, fueled by telematics and tools like control towers, GPS-enabled tracking, and analytics dashboards, now provide a transparent view of goods from the factor y floor to their destination.

Operators can now use real-time data to anticipate bottlenecks at border crossings, reroute shipments around security risks, or manage port delays. This allows for proactive, data-driven decisions, moving companies from reactive measures to proactive foresight. Some experts suggest companies using these tools can cut freight costs by 10% to 20% by optimizing routes and resolving problems up to 50% faster,

helping to dodge demurrage and other holdup fees. Investing in visibility can return two to five times the technology’s initial cost. In Mexico, the country’s proximity to the United States, offering 30% shorter lead times and lower logistics costs compared to Asia, compounds this technological advantage, giving companies agile oversight and cost control.

By analyzing historical data, platforms can forecast delivery times with greater accuracy and predict vehicle maintenance needs before a breakdown occurs. This predictive data is also critical for optimizing inventory management, as manufacturers in Mexico are mixing it with past sales, realtime economic info, and even weather patterns to build smarter demand models. This approach keeps inventory costs down, avoids stockouts, and builds a more resilient and reliable supply chain.

Furthermore, Internet of Things (IoT) sensors on trucks, trailers, and even individual pallets provide a constant stream of information. This data goes beyond location to include cargo temperature, fuel consumption, and driver behavior, enabling granular control over operations.

AI and Machine Learning (ML) are becoming the brain of the modern supply chain, analyzing vast data streams from IoT devices. While widely recognized for dynamic route optimization, processing variables like traffic and border times to save fuel and time, AI and ML’s impact extends further. It automates decisions and drives predictive efficiency across the logistics network. Companies use these tools to improve demand forecasting, lower inventory, automate warehouses, and predict equipment failures, shifting the industry from a reactive to a predictive model.

A key area where technology is enabling progress is in green logistics. This is often a direct result of efficiency gains. When

AI-driven platforms optimize routes, they inherently reduce the number of kilometers driven and, consequently, lower fuel consumption and carbon emissions. At the same time, companies are moving toward the electrification of their fleet, which, aligned with the optimization of processes, can lead to further efficiencies. “EVs are the best choice for the logistics sector, as they boost sustainability while reducing the need for gasoline,” Marco Serrato, Co-Founder and CEO, MyShipper.

Telematics and IoT systems contribute by monitoring driver behavior to reduce speeding or excessive idling, as well as ensuring optimal engine health and tire pressure, all of which reduce the fleet’s environmental footprint. This alignment is critical, as sustainability is no longer an option but a core demand from the multinational clients, making green operations a key pillar for long-term growth and global competitiveness.

The Workforce Dilemma

This technological shift is creating a significant gap between the industry’s new requirements and the existing workforce’s skills. Competencies for logistics professionals are no longer

“Companies have to invest in highly qualified personnel who can use state-of-the-art technologies and generate long term value”

Marco Serrato Co-Founder and CEO | MyShipper

centered on manual dispatch but on data analysis, technology management, and software operation. Experts suggest that companies fully assess their processes and capabilities to better integrate tech tools, as they should not adopt technology just to follow the trend; technology must align with a company’s context.

“Before implementing any state-of-the-art system, it is necessary to review whether the company meets the requirements for its successful implementation,” said Morales. “AI can bring numerous benefits, but its implementation requires careful consideration to fully address the needs of the company,” added Morales.

Companies are now seeking logistics professionals who can interpret data dashboards, manage fleet management systems, and understand the basics of data science. To close this talent gap, leading logistics firms need to collaborate with universities and technical institutions to develop new curricula and certification programs, ensuring a future workforce that is as comfortable in a data hub as it is in a warehouse. “Companies have to invest in highly qualified personnel who can use stateof-the-art technologies and generate long term value,” said Serrato.

This evolution must be addressed quickly, as technology and business models are experiencing constant disruptions. “The requirements for talent are changing rapidly. Humans will increasingly take supervisory roles over machines,” said Evaristo Babé, CEO, Pulpo and PulpoPay.

Similarly, developing internal talent is key to ensuring a smoother transition among team members. r ather than replacing experienced staff, many companies are focusing on upskilling and reskilling their current workforce. This internal training is crucial, as it combines valuable, on-theground institutional knowledge with the new digital competencies required, leading to faster adoption of new technologies and improving overall employee retention.

THE LOGISTICS

PLAYBOOK: STRATEGIES FOR THE MARKET O F TOMORROW

As geopolitical shifts redefine global trade routes, logistics leaders in Mexico are adapting their strategies and operational networks to meet the evolving market needs. The nearshoring boom has intensified North American trade, creating new opportunities despite market volatility. To capitalize on this new dynamic, the sector is re-evaluating its investments, business models, and client relationships, moving from traditional transport to integrated supply chain management, said experts at Mexico Business Summit 2025.

Mexico’s recent status as the main US trade partner has resulted in the intensification of North American trade, and capital investment is being directed toward critical infrastructure to build a more resilient cross-border logistics network. “There are many inefficiencies in how Mexico distributes products to the United States, as Mexico overrelies on points that are becoming saturated,” said Luis Ángel Mera, Managing Director, Vertice Worldwide.

While infrastructure limitations pose a challenge in Mexico, experts believe companies with a creative approach can still find significant growth opportunities. “Mexico’s opportunities are hidden behind challenges, and those who are prepared will be able to capitalize on them,” said Paulo Biazotti, President, ONE Mexico.

In this context, investment in digital assets is considered essential. “Long ago, logistics operated as a closed system; now clients value transparency throughout the process,” said José García, Director of New Business Development, Onest Logistics.

“If Mexico generates more added value, it will create more jobs and promote development, while attracting more companies and opportunities.”

Paulo Biazotti President | ONE Mexico

Building an efficient network requires realtime, end-to-end visibility, as investing in visibility can bring back up to five times the investment, depending on volumes and frequencies. Capital is flowing into technology platforms, including Transportation Management Systems (TMS), customs automation software, and predictive analytics. These digital tools allow operators to anticipate bottlenecks and proactively manage freight flows, turning data into a key asset for resilience. “Businesses need to invest in digitization and technology, as they would greatly benefit from merging all processes into a single system,” said Jean Paul Sarrapy, Vice President Global Business, GP Logistics.

This focus on technology is part of a broader strategy to evolve Mexico from a low-cost labor market toward technology-driven competitiveness. As exemplified by Alfonso López, Vice President and Director General, CEVA Logistics, through partnerships with research institutions and internal innovation, the company tests and implements cuttingedge solutions. By integrating proven innovations from high-labor-cost countries, the company can help customers to stay ahead through automation rather than relying solely on manual processes.

Finance, Technology to Make Logistics More Accessible

In the current trade context, a convergence between logistics and finance is generating new business models. Mera considers there is an opportunity for startups to finance smaller companies, as there are companies with more restricted financial arms. “Many companies in Mexico cannot grow because they do not have access to financing; there is a great opportunity for new financing startups, which can help finance these companies,” Mera stressed.

Third-party logistics (3PL) and fourth-party logistics (4PL) providers are no longer just

managing the physical movement of goods; they are also managing the associated financial risks. “Logistics operators have a responsibility to help clients with their regulatory and compliance matters,” noted García.

Innovative solutions are emerging where operators integrate supply chain finance and advanced insurance products. This convergence is also seen in the management of customs and fiscal compliance, where logistics partners provide services like IMMEX support, fiscal deposits, and strategic customs-bonded warehouses to manage a client’s immediate tax and duty burdens.

One emerging model involves the logistics provider financing a client’s inventory while it is in transit or in storage, improving the client’s cash flow. Another is the development of integrated insurance products that go beyond basic cargo coverage to include supply chain disruption risks. “There are many lessons that Mexico can learn from Brazil and Colombia to prevent cargo theft, such as giving transporters a stake in the cargo they transport,” Mera suggested to

combat one of the main risks associated with operating in Mexico.

These strategies optimize Mexico’s role by allowing operators to act as integral partners who not only move goods but also mitigate their clients’ financial volatility. This trend is expected to evolve toward digital ecosystems where financial services are fully embedded within logistics management platforms.

Mexican logistics stakeholders need to find creative ways to operate efficiently within the existing infrastructure framework, focusing on adding tangible value to attract and retain foreign investment amid ongoing global shifts. “The sector will see significant volatility in the coming years due to geopolitical issues. To overcome this challenge, Mexico needs to improve its processes to add more value,” Mera concluded. This focus on value creation is not just about efficiency, but about fostering broader economic benefits.

As Biazotti highlighted, “If Mexico generates more added value, it will create more jobs and promote development, while attracting more companies and opportunities.”

MEXICO’S AUTO AND AEROSPACE SECTORS NAVIGATE TARIFFS, TALENT GAPS

Mexico’s automotive and aerospace industries are undergoing significant adjustments due to new US tariffs and shifting trade conditions. Between January and September 2025, light vehicle exports fell 0.9%, according to INEGI, while aerospace sector growth slowed to 9%, below post-pandemic averages, according to FEMIA. Tariffs of 25% on vehicles and parts with non-US content, and 50% on steel and aluminum, are reshaping cost structures and prompting companies to rethink supply chains and production strategies.

Jorge Mario Martínez Piva, interim director, CEPAL in Mexico, noted that the nearshoring window for Mexico is narrowing, shifting investment priorities toward domestic production. “This does not imply a decline in investment but the start

of a new phase focused on strengthening national development,” he said, amid global geopolitical uncertainty. Still, he warned that Latin America risks remaining on the global periphery in advanced services, artificial intelligence, and Industry 4.0. INEGI reported a 1.3% decline in manufacturing activity in September 2025.

The Mexican government is promoting initiatives such as “Hecho en México” under Plan México to strengthen domestic production, reduce unnecessary imports, and leverage USMCA rules of origin for tariff-free access to the US market. r egulatory alignment and infrastructure development—including logistics hubs and industrial parks—are key to supporting high-value manufacturing.

r &D and innovation are increasingly important. Projects such as the TT (Totalmente Tlaxcalteca) electric vehicle and startups like Zacua demonstrate efforts to build local capabilities. In aerospace, Halcón 2 and Pegasus PE-210A exemplify domestic r&D aimed at reducing import reliance and strengthening supply chains.

Talent development remains a critical challenge. Digitalization, automation, and the shift to electric vehicles are driving demand for specialized skills. Industry clusters in Queretaro and Oaxaca are

partnering with universities and technical institutes to train workers for emerging needs. Yet a 2025 ManpowerGroup study found that 70% of Mexican employers struggle to fill key roles in engineering, IT, operations, and logistics.

Despite these pressures, Mexico remains an attractive investment destination. The aerospace sector ranks fifth globally for foreign direct investment and twelfth for exports, while automotive production surpassed 3 million units between January and September 2025, according to INEGI.

MANUFACTURING REINVENTED: DISRUPTIVE TECH BOOSTS COMPE TITIVENESS

The integration of disruptive technologies is transforming Mexico’s manufacturing sector, with the automotive industry leading adoption and setting the pace for other high-tech segments such as aerospace. Automation, robotics, and Industry 4.0 tools are reshaping production systems, improving efficiency, and redefining competitiveness in the country’s industrial base, agreed experts at Mexico Business Summit 2025.

“Cobots

are helping companies balance labor shortages with productivity goals. They handle repetitive or hazardous tasks so human workers can focus on operations that require adaptability”

According to the International Federation of robotics (IFr), 5,832 industrial robots were installed in Mexico in 2023, 70% of them in automotive plants. An additional 5,600 units were added in 2024, underscoring Mexico’s steady integration of robotics despite a slight year-over-year decline. This sustained growth reflects how automation has become a central pillar of Mexico’s industrial strategy.

Uriel Fraire RSM Latam

| Universal Robots

The shift is particularly evident in automotive manufacturing, where robot density and human-machine collaboration have accelerated. “We are seeing robotics applied in welding, painting, and material handling. It is about consistency, safety, and creating flexible systems that adapt to demand changes,” said Christopher Hernández, Director General, KUKA. He also highlighted that cobots and automation cells are improving cycle times while maintaining worker safety standards.

“Automation is no longer an option—it’s essential for remaining competitive,” said Cecilia Díaz, r egional Director Mexico, r ockwell Automation. She emphasized that rising global demand for productivity, precision, and traceability is pushing manufacturers to rethink production systems from the ground up. Digital integration, she added, allows companies to make real-time decisions that directly impact quality and throughput.

The role of software and open systems has also grown. “Open-source platforms are allowing manufacturers to connect machines and systems that traditionally operated in isolation,” said Gerardo Pazos, Country Manager, SUSE Mexico & r est of Latin America. “That visibility makes it possible to predict maintenance needs, prevent downtime, and optimize production without increasing complexity.” He added that edge and cloud solutions are key

enablers of scalable automation for both large and small manufacturers.

This evolution is not limited to large-scale automotive facilities. “The idea is to integrate automation where it adds the most value,” said Gerardo Pazos. “You do not need a complete overhaul to improve productivity; starting with critical processes can already deliver measurable gains.”

The same principles are expanding into aerospace and other advanced manufacturing industries. Mexico’s aerospace market, valued at US$2.58 billion in 2024, is projected to reach US$2.96 billion by 2029, according to Zeitgeist Consulting Group. While robot adoption remains limited compared to automotive, automation is becoming crucial in precision machining, component testing, and quality assurance for aerospace exports.

“Cobots are helping companies balance labor shortages with productivity goals. They handle repetitive or hazardous tasks so human workers can focus on operations that require adaptability,” said Uriel Fraire,

r SM Latam, Universal r obots. This shift aligns with national data showing that manufacturing labor productivity reached 102.3 in 2023 (2018=100), highlighting how automation complements, rather than replaces the workforce.

Broader adoption of Industry 4.0 technologies reinforces this trend. Mexico’s Industry 4.0 market reached US$2.47 billion in 2024 and is forecast to surpass US$8.33 billion by 2033, according to IMArC Group. These technologies, ranging from machine vision and advanced sensors to artificial intelligence, are enabling real-time monitoring, predictive analytics, and improved resource allocation.

As global supply chains continue to regionalize and labor costs rise, automation offers a sustainable path to competitiveness. Mexican manufacturers are investing in technologies that integrate hardware, software, and human expertise to deliver faster, safer, and more resilient production. “Automation is not just about replacing manual work. It is about building the foundation for long-term industrial competitiveness,” said Díaz.

TRANSFORMING THE FUTURE OF RETAIL TALENT

To thrive in the shifting labor market, companies should focus on anticipating future workforce needs and fostering the professional growth of their employees, says Walmart Mexico and Central America. This approach requires a structured model that connects business strategy, market trends, and leadership development.

Walmart is advancing its talent development strategy in the region to align workforce planning with business growth, aiming to strengthen leadership and operational

“We

aim for everyone to have opportunities for development and growth, because at Walmart, the associate is always at the center of every decision”

Yolanda Rodríguez Head of HR for Bodega Aurrera | Walmart

capacity across its over 3,000 stores and 180,000 associates in the country, says Yolanda rodríguez, Head of Hr for Bodega Aurrera, Walmart.

“In the next five years, we will continue expanding our stores across all formats, and it is very important for us to have the best talent to operate and lead them,” says rodriguez. In the next three years, the company expects a 20% increase in leadership positions while 8% of current leaders approach retirement. This dynamic underscores the need for continuous investment in skills development and succession planning.

Future operations are expected to involve career paths that allow cross-banner mobility, competency assessments, and leadership development aligned with digital transformation and technical growth initiatives. Through its Technical Ladder

model, Walmart encourages development and creates learning opportunities that enhance professional mobility and sustainability within the company.

To ensure operational excellence, Walmart is building technical competencies among store associates in areas such as supply chain management, strategic sourcing, compliance, and organizational development. These capabilities are essential for maintaining efficiency and customer satisfaction in an increasingly complex retail environment, says rodríguez.

Leadership training remains a cornerstone of Walmart’s talent strategy. The company is developing leaders equipped with competencies in strategic planning, omnichannel vision, customer-centricity, and agility. A structured performance and potential evaluation matrix helps

align leadership development with store performance, operational complexity, and people management indicators.

“We want to anticipate talent needs to bridge the gap between our workforce and business strategy,” says rodriguez.

With more than 180,000 associates serving over 6 million families in Mexico, Walmart’s workforce development efforts are central to its goal of ensuring sustainable growth while empowering its employees, says rodríguez. As the company adapts to market changes and digital evolution, it continues to position its associates as the core of its operational and business transformation.

“We aim for everyone to have opportunities for development and growth, because at Walmart, the associate is always at the center of every decision,” says rodriguez.

COLLECTIVE GROWTH, VIRTUE SHAPE THE LEADERS O F TOMORROW

Collective growth and community play a key role in building the future of leadership and achieving long-term success, explains Gonzalo Díaz-Báez, Founder, WeforLife. r esults and progress define evolution, he says, adding that well-being should be treated as a strategic priority rather than a luxury.

Talent is not an inherent trait but rather something to be uncovered, cultivated, and utilized for the benefit of others, says DíazBáez. Consequently, profound connections, both self-reflective and with peers, are essential for progressing “beyond tomorrow.”

Central to his approach is a model outlining the dimensions of virtue: intellectual, emotional, motivational, and behavioral. Leaders who align these dimensions are better equipped to foster positive workplaces. He also explains that connecting positive individuals, microcultures, and integrated communities contributes to collective development and societal evolution.

When 80% of emotions in an organization are positive, a healthy work environment emerges, says Díaz-Báez. He adds that the next generation of leadership will not only rely on accumulated knowledge or learning speed, but also on the ability to continuously reinvent oneself while applying wisdom effectively.

THE EFFECT OF TRUST AND THE INVISI BLE CRISIS

In the modern organizational landscape, trust has emerged as a pivotal yet often overlooked element that directly influences productivity, talent management, and overall business performance. referred to as the “invisible currency of organizations,” trust functions as a unifying factor, underpinning employee engagement, loyalty, and operational efficiency.

“Trust is the real currency that unites topics beyond finance. According to the Great Place to Work model, trust is built when organizations value the employee’s opinion and create environments where people believe the company has solid business practices,” says renán González, CEO Mexico, Caribbean, and Central America, Great Place to Work.

recent analyses reveal a global decline in organizational trust, underscoring what has been termed a “silent crisis.” Across multiple regions, indicators of organizational trust show a downward trend. Globally, 58% of certified companies tracked by Great Place to Work reported an average decrease of 1.8 percentage points in the Trust Index between 2023 and 2024. Mexico mirrors this trend, with its Trust Index falling by two percentage points over the same period, from 85% to 83%. Concurrently, INEGI’s Business Confidence Index recorded 48.7 points in June 2025, entering the “pessimism zone” and reflecting a 13% decline since 2021.

“Mexico’s main commercial partner is the United States, where tariffs can change every 120 days. If the confidence index continues to decline year after year, we must

“On a personal level, trust takes time to earn. As employees, we build trust with our leaders through consistent work and integrity. When leaders act with transparency, that trust naturally extends to the entire organization”

Renan González CEO Mexico, Caribbean, and Central America | Great Place to Work

ask ourselves what structural changes are needed to rebuild trust,” says González. He notes that this macroeconomic uncertainty intensifies the need for organizations to focus on strengthening internal trust dynamics.

Trust is not an abstract concept but a measurable outcome of the Sustainable Equation, which links productivity, talent retention, and loyalty to confidence.

Organizations that maintain high levels of trust tend to exhibit stronger productivity metrics, more engaged employees, and higher retention rates. In this framework, trust acts as both an input and a result of effective leadership, organizational practices, and collaborator engagement. “One of the strongest investments we can make to reverse these numbers is implementing effective talent and productivity practices that help leaders truly understand performance across their teams,” says González.

Three primary drivers underpin trust in organizations: leaders, practices, and collaborators. Leadership credibility, transparency, and consistency directly influence employee confidence and organizational resilience. Operational policies, recognition programs, and communication strategies reinforce trust at a structural level. Finally, employee behavior and engagement are the most efficient drivers of trust, as peer-to-peer interactions and internal networks amplify or undermine confidence within teams.

“Trust is fundamental. The challenge for any company today is to determine whether the essential elements of productivity, talent management, and leadership are being fulfilled — and to actively promote them within every area,” says González. “Development is a powerful word, especially when it becomes part of a company’s culture.”

Beyond internal morale, declining trust carries tangible consequences for innovation, talent acquisition, and cultural sustainability. Organizations experiencing

low trust levels are more likely to encounter reduced productivity, higher turnover, and diminished performance outcomes. González emphasizes that “organizations that achieve high levels of certification and performance tend to have stronger results. Simple structures and a culture that empowers people to create, innovate, and develop projects lead to deeper commitment and engagement.”

He also points out that trust must be nurtured at every level of the organization. “On a personal level, trust takes time to earn. As employees, we build trust with our leaders through consistent work and integrity. When leaders act with transparency, that trust naturally extends to the entire organization,” says González.

Addressing the invisible crisis, therefore, requires concrete actions rather than mere

communication. Practical strategies may include revamping leadership training, introducing transparent operational practices, and fostering a culture where employees are empowered to actively shape trust dynamics. “In a world where trust shifts daily and uncertainty is constant, the challenge is to ensure that every organization builds a model of trust that becomes a shared value across all its people,” says González.

The invisible crisis of declining trust represents both a challenge and an opportunity for organizations. By systematically addressing the drivers of trust, businesses can reinforce confidence, enhance performance, and sustain competitive advantage. As organizations navigate an increasingly complex environment, trust is not optional; it is an essential currency for long-term success.

TENT PARTNERSHIP FOR REFUGEES: THE WIN-WIN OF HIRIN G REFUGEES

As migration patterns in the Americas shift, more companies in Mexico are turning to refugee and migrant talent to address labor shortages and promote inclusion. The Tent Partnership for r efugees (Tent), a global network of more than 500 companies, is leading this effort through its local coalition, Tent México, which includes over 80 national and international corporations, explains Arturo rocha, Deputy Director, Tent Partnerhsip for refugees.

“As the Mexican economy continues to grow, companies have an incredible opportunity to meet their labor needs by hiring these workers,” says Gideon Maltz, CEO, Tent.

As of 2024, 46 Mexican companies had committed to reduce the traditional barriers refugees and migrants face when attempting to participate in the job market.

Consumer sentiment in Mexico aligns with these efforts, reveals a study published by Tent. The study found that 74% of Mexican consumers across all age groups are more likely to buy from companies that hire

refugees. This strong support for companies aiding refugees surpasses that seen in other markets studied by Tent, including the United States, Spain, and Germany.

According to Tent, about 1.2 million international migrants live in Mexico, with more than 115,000 in irregular situations as of 2024. recent data from the International Organization for Migration (IOM) shows that 46% of migrants intend to remain in Mexico and rebuild their lives. This has opened the door for companies to play a role in economic integration.

“There has never been a greater migration flow through Mexico than during the 2022–2023 period. And here we can find the answer to our talent needs,” says Arturo r ocha, Deputy Director Partnership for refugees, Tent.

Major corporations are already demonstrating the model’s potential. FEMSA has hired more than 1,500 refugees across its OXXO stores nationwide, Marriott is integrating refugee

“There has never been a greater migration flow through Mexico than during the 2022–2023 period. And here we can find the answer to our talent needs”

Arturo Rocha Deputy Director | Tent Partnership for Refugees

employees across its hotels, and Grupo Comercial Chedraui aims to employ 200 refugees and migrants by 2025.

Founded by Hamdi Ulukaya, CEO, Chobani, Tent supports businesses in connecting refugees and migrants with formal employment opportunities. Its work focuses on helping companies recruit, train, and integrate this workforce while offering guidance, training, and best practices at no cost.

Tent’s services for member companies include personalized advisory on hiring processes, partnerships with civil society organizations,

and training for human resources teams. The organization also provides mentorship opportunities and helps match refugee and migrant talent with suitable positions in supply chains or client networks.

The benefits extend beyond social impact. Companies that employ refugees and migrants often experience lower turnover rates and improved organizational performance. Consumer sentiment also favors inclusion: 74% of Mexican consumers say they are more likely to buy from companies that hire refugees, according to a 2023 survey conducted by GBAO.

Tent’s approach aims to deliver a “quadruple benefit,” helping migrants, businesses, Mexico’s economy, and local communities. As migration policies evolve and new opportunities arise, Tent encourages companies operating in Mexico to join its coalition and take part in building a more inclusive workforce.

UNLOCKING POTENTIAL: THE FUTURE OF N EARSHORING

Mexico is increasingly positioning itself as a strategic hub for nearshoring, leveraging its geographic location, skilled workforce, and established industrial base to attract international trade and investment. Over the past decade, Mexico’s international trade has experienced robust growth, with exports and imports rising significantly. This trajectory underscores the country’s potential to consolidate its role in global value chains, particularly in manufacturing and logistics-intensive sectors, says Paulina Aguilar, Co-Founder and CrO, Mundi.

“Geopolitical or logistical risks are harder to control, but our best protection lies in quality and value creation. The more we innovate and truly transform what we produce, the more resilient our economy becomes. We must ensure that Made in Mexico means transformation, not just transit.”

“The time has come for Mexico to move from a position of dependency to one of leadership. We need to step forward and take a more proactive role in shaping global value chains,” says Aguilar. “The opportunities are clear: expanding our supply chain networks, integrating more companies — especially SMEs — into global trade, attracting new investments, and strengthening the quality and sophistication of products made in Mexico.”

Paulina Aguilar Co-Founder and CRO

| Mundi

Mexico’s exports remain highly concentrated in North America, with the United States representing the vast majority of shipments, followed by Canada. Imports are comparatively more diversified, originating from the United States, China, Taiwan, and other partners. This configuration reflects Mexico’s strategic integration with North American markets while maintaining access to Asian supply chains. These dynamics position Mexico as both a principal commercial partner to the United States and a top 10 global exporter, highlighting its industrial capacity and trade balance strength.

Nearshoring in Mexico offers multiple structural advantages, explains Aguilar. Proximity to key markets reduces logistical complexity and transportation costs, while natural resources and a skilled workforce enhance the country’s manufacturing capabilities. The transition from a traditional maquila model to a value-added industrial system allows companies to optimize production processes, enhance product quality, and strengthen regional supply chains.

“Over the past decade, Hecho en México has evolved significantly,” says Aguilar. “We used to be a country where parts arrived, were assembled, and then exported. Today, in industries such as automotive and aerospace, we are seeing genuine innovation: components are being designed and manufactured locally. Original designs and intellectual property are being generated here, adding real value within global supply chains.”

The economic benefits of nearshoring are tangible. Trade within North America has exceeded US$1.6 trillion, supporting strategic sectors and improving labor conditions for millions of workers. Aguilar points to recent data to illustrate Mexico’s growing competitiveness: “Mexico’s exports grew 4.3% in the first half of 2025. Banxico has revised its growth forecast upward to 0.6%, while the IMF projects 1.1%, and the OECD forecasts 1.6% for 2026. The IMF has even positioned Mexico as a key epicenter in the global industrial realignment. These projections show strong international optimism, but we must act now to make these forecasts a reality.”

Despite the clear advantages, Mexico faces several risks. Trade tensions and tariff fluctuations have historically affected economic growth and employment, particularly in the maquiladora sector. Political and regulatory uncertainties, including potential changes under USMCA 2.0 and nationalist policies, could create fragmentation in supply chains or hinder investment flows.

“Potential bottlenecks in nearshoring pose real risks and must be mitigated through investment in infrastructure, supply chain

visibility, technology, and skilled labor,” says Aguilar. “Geopolitical or logistical risks are harder to control, but our best protection lies in quality and value creation. The more we innovate and truly transform what we produce, the more resilient our economy becomes. We must ensure that Made in Mexico means transformation, not just transit.”

risks coexist with opportunities. reinforcing value chains, incentivizing two-way investments, and upgrading production capabilities can position Mexico to capture long-term nearshoring gains. Companies that proactively address these challenges by diversifying supply chains and leveraging regional policies are better equipped to navigate uncertainty.

Aguilar emphasizes that to sustain momentum, Mexico must take decisive steps in five key areas: “First, establish a clear and reliable regulatory framework that provides legal certainty for both domestic and foreign investors. Second, develop regional industrial policies that build on proven models. Third, strengthen strategic infrastructure. Fourth, develop specialized human capital through investment in education and technical training. And finally, integrate more SMEs into global value chains. SMEs are the main employers in Mexico, and their inclusion is essential if we want the benefits of globalization and nearshoring to be broadbased and sustainable.”

Financial services tailored to support export operations can also accelerate nearshoring adoption. Flexible financing solutions, competitive rates, and customizable services help businesses manage liquidity and optimize their foreign trade activities. These tools complement operational strategies and enable companies to scale efficiently within Mexico’s nearshoring ecosystem.

“Mexico has the chance to lead North America’s next growth cycle, but that requires collective action from both the public and private sectors, aligned under a shared vision. It is not a task for tomorrow; it is one we must tackle today,” says Aguilar.

ELECTRICITY MARKET: SUPPLY, DEMAND, TECHNOLOGY A ND FINANCE

As Mexico redefines the future of its electricity market, the conversation around supply, demand, technology, and finance becomes more urgent than ever. Industrial expansion, rising power consumption, and global decarbonization targets are converging at a time when the national grid faces mounting strain and investment needs. The government’s new planning and regulatory framework has set out to strengthen state oversight while seeking coordinated private participation, shaping the next chapter of the country’s energy evolution.

Mexico’s decarbonization challenge is both structural and economic. Natural gas continues to dominate generation, supplying about 58% of the country’s electricity in 2024, compared to less than 20% at the turn of the century. The majority of that fuel, over 6.4Bcf/d, is imported from the United States, a twenty-two-fold increase since 2000. r enewables, while growing, accounted for only 21.6% of total generation last year, with solar and wind representing just over half of that share.

This imbalance underscores the scale of opportunity. Expanding renewable capacity not only supports Mexico’s climate goals but also enhances energy sovereignty and financial stability. If today’s solar and wind output had been replaced with gas, Mexico would have required an additional 1.1Bcf/d

in imports, equivalent to roughly US$729 million in extra costs. Collaboration between producers and industrial offtakers is therefore central to achieving cleaner, traceable supply chains, agreed experts at Mexico Business Summit 2025.

Many large manufacturers are already seeking long-term clean energy contracts, but grid access, permitting, and infrastructure remain bottlenecks. “Authorities must incentivize private investment so transmission and generation projects can be developed,” said Leopoldo Salinas, Director of r enewable Asset Holding Company, Capwatt Mexico, underscoring the importance of policy-driven collaboration to expand capacity.

Mexico’s industrial surge, fueled by nearshoring and new manufacturing investments, is accelerating electricity demand in key corridors. regions hosting data centers, automotive clusters, and export assembly plants are approaching the limits of grid capacity. Analysts have warned that consumption is rising faster than infrastructure expansion, increasing the risk of localized bottlenecks and outages during peak demand periods. “Data centers are driving significant demand for energy, which the existing infrastructure is unable to handle,” said José Buganza, Director General, Enegence.

r ecent heatwaves have pushed national consumption to record highs, with thin operational margins exposing vulnerabilities in transmission and distribution. These pressures highlight the urgency of expanding and modernizing the grid to support industrial competitiveness while maintaining reliability. Coordinated planning between federal, state, and private stakeholders will be critical to ensuring sufficient capacity, particularly in areas targeted for industrial growth.

Digitalization is emerging as a cornerstone of Mexico’s energy modernization. CFE is implementing a MX$164 billion transmission

expansion program that includes smart grid technologies, digital transformers, hightemperature cables, and advanced sensors. These upgrades aim to reduce losses, improve real-time control, and enhance resilience.

Artificial intelligence is also gaining traction across the electricity value chain. For generators, AI tools optimize dispatch and detect faults before they cause disruptions. For industrial offtakers, they enable precision energy management and predictive maintenance, reducing costs and emissions. According to the International Energy Agency, widespread AI adoption could deliver energy savings greater than Mexico’s total current electricity consumption, while cutting outage durations by up to half.

Improving Mexico’s energy infrastructure will require innovative financing models and greater regulatory certainty. Project finance mechanisms are evolving to accommodate both state-led and independent developments, with investors increasingly focused on risk mitigation through legal and contractual clarity. “Private investors and banks have shown significant appetite for financing energy projects,” said Buganza, underscoring the momentum behind clean infrastructure and financing availability.

“Data centers are driving significant demand for energy, which the existing infrastructure is unable to handle”

Leopoldo Salinas Director of Renewable Assets Holding | Capwatt

to attract capital. “Five-year contracts are not enough to manage 25-year projects; PPAs have to be long term again.”

For Mexico’s electricity ambitions to materialize, public-private cooperation must extend beyond capital deployment, as well. It requires shared accountability in project planning, risk allocation, and execution timelines, particularly as new renewable capacity and industrial energy needs expand in parallel. Yolanda Villegas, Energy Expert, pointed to the government’s Plan México as a key step toward meeting this demand: “Plan México aims to build capacity for 28GW, to add to the 89GW the country already has.”

The regulatory landscape is undergoing one of its most significant transformations in a decade. The updated regulation of the Electric Industry Law (rLSE), published in October 2025, introduced new parameters for generation, transmission, distribution, and storage. The framework strengthens state participation while preserving pathways for private sector involvement, signaling a shift toward coordinated, planned development of strategic projects. The regulation also introduces streamlined permitting, new social and technical safeguards, and mechanisms for storage and strategic project designation. For developers and industrial consumers alike, alignment with national planning instruments will be crucial. Compliance and coordination will determine which projects move forward under the new framework and how quickly.

recent shifts in the legal framework have improved alignment between constitutional and legislative provisions, reducing uncertainty. New mechanisms, such as trusts that guarantee transparent income distribution between public and private partners, are helping banks and funds assess long-term viability. However, investors continue to weigh regulatory stability and access to transmission capacity as key risk factors. Diego Arriola, Partner, NXT, highlighted the need for longer-term certainty

Ultimately, Mexico’s electricity market stands at an inflection point. The government’s push for a more coherent and state-led system, paired with industry efforts to modernize and decarbonize operations, could reshape the market’s structure and investment landscape. The success of this transition will depend on how effectively both sides, public and private, align around shared goals: reliability, sustainability, and competitiveness. “The sector is eagerly waiting for updated regulations; it also needs faster responses from authorities,” added Salinas.

POTENTIAL TO POWERHOUSE: ACCELERATING SOLAR DEPLOYMENT IN MEXICO

As Mexico moves toward 2030, the country’s energy agenda is reaching a defining crossroads. The federal government has launched an ambitious roadmap to accelerate renewable generation, expand grid capacity, and strengthen the role of domestic industry under the global nearshoring wave. Yet the pace and shape of Mexico’s solar transition will depend on how effectively the public and private sectors align strategy, regulation, and investment over the next decade, agreed experts at Mexico Business Summit 2025.

“Having available energy is no longer enough; now that energy must be renewable,” says Ian de la Garza, CEO of Finsolar. “Many businesses are interested in investing in Mexico, and see great potential in renewable projects.”

The Ministry of Energy’s new mechanism for prioritizing generation permits signals a shift in the way Mexico plans and approves clean energy projects. The ministry’s call for private sector collaboration, issued in October, outlines the development of 34 renewable plants totaling more than 6GW, about two-thirds solar and one-third wind, representing investments of roughly US$7.1 billion. The process aims to streamline project evaluation, group developments by region, and reinforce critical transmission infrastructure. The initiative is part of a broader effort to meet Mexico’s 2030 goal of sourcing at least 38% of its electricity from renewables, while maintaining state utility CFE’s majority role in the national grid.

“Storage will play a key role in making the grid more reliable and in achieving the country’s energy goals. The combination of storage and solar projects will create attractive projects that will boost Mexico’s economy”

Juan Pablo Sáenz Mexico Country Manager | Atlas Renewable Energy

Policymakers have framed the plan as a turning point for coordination between government and industry, with faster permitting, defined evaluation timelines, and a focus on transparency. But achieving scale will also require long-term resilience, reducing exposure to global supply chain shocks, stabilizing input costs, and ensuring that energy infrastructure keeps pace with industrial demand. The nearshoring boom has amplified Mexico’s need for reliable, competitively priced electricity, especially in manufacturing corridors across the north and center of the country.

While the policy framework has become more centralized, Mexico’s solar market remains dynamic. The country added 1.6GW of new photovoltaic capacity in 2024, pushing total installed capacity to 12.6GW. Most of this growth came from small and mediumscale rooftop systems, reflecting growing confidence among businesses and consumers. Distributed generation surpassed 1GW in new annual additions for the first time, driven by falling costs, corporate sustainability targets, and electricity price volatility.

Since 2017, distributed PV has grown at an average annual rate of nearly 40%, and projections suggest it could reach 8GW by 2030 if current momentum holds. However, the utility-scale segment has expanded more slowly. Developers face grid congestion and planning restrictions that limit flexibility under CFE’s 54% generation share mandate. While recent reforms provide legal certainty on paper, investors remain cautious about how centralized oversight might affect project timelines and access to transmission capacity.

“Mexico was once one of the largest markets for energy renewables. Nine years ago the country had everything. Now, to reach its 2030 objectives, it has to return to the basics,” said Alberto Cuter, Vice President of Latam and Italy, Jinko Solar. He noted that enabling industries to generate more of their own energy will be key to progress. “By

allowing manufacturing plants to increase the amount of energy they can produce, businesses will save money while easing up pressure on the grid.”

At the same time, Mexico’s solar potential continues to attract attention from analysts and technology developers worldwide. Mexico ranks among the world’s most promising solar regions. With sufficient battery storage, solar could supply up to 90% of national electricity needs while occupying less than 0.3% of the country’s land area. Expanding renewable generation could reduce dependency on imported US natural gas, which currently fuels more than half of Mexico’s power generation.

Scaling solar capacity to 47GW by 2030 could cut gas imports by 20%, saving around US$1.6 billion per year, according to Ember’s analysis. The broader economic implications go beyond cost savings: a more self-sufficient power system would enhance Mexico’s energy security, strengthen its industrial competitiveness, and align with the administration’s climate targets.

“Mexico has significant potential for renewable energies. To achieve it, the sector needs a stable regulatory and legal environment, so companies can invest in long-term projects,” says Luis Quero, Mexico Country Manager, Atlantica.

Tapping that potential will also require urgent progress in grid modernization. Transmission remains one of the country’s biggest bottlenecks. Many renewable projects are

located in resource-rich but remote areas with limited interconnection capacity. Building new transmission lines has proven slow, weighed down by environmental permitting and coordination hurdles.

“Storage will play a key role in making the grid more reliable and in achieving the country’s energy goals. The combination of storage and solar projects will create attractive projects that will boost Mexico’s economy,” said Juan Pablo Sáenz, Mexico Country Manager, Atlas renewable Energy. “The grid has not received significant investments in recent years, and new projects will arrive slowly. For that reason, it is necessary to invest in storage projects.”

Distributed and self-consumption models are emerging as practical solutions to grid woes, particularly for industrial users seeking to stabilize energy costs and hedge against grid constraints. Combining on-site solar generation with battery storage is becoming increasingly viable as technology costs fall. “A large part of a company’s energy bill corresponds to consumption during peak hours. By using batteries during those hours, clients can save money, while taking pressure off the grid,” said Quero. These hybrid models can also help manage peak demand, enhance reliability, and reduce strain on the national grid.

Authorities have begun to recognize the potential of self-consumption systems paired with storage as part of Mexico’s broader energy transition. “Storage will help Mexico to avoid blackouts and guarantee the energy the country needs,” said Miguel Medina, Managing Director, Corey Solar.

While regulatory clarity remains a work in progress, there are signs of gradual alignment between policy and market practice. Still, the challenge lies in implementation. Laws and targets can guide the direction of travel, but real progress depends on execution and on whether administrative processes, financing frameworks, and technical standards evolve quickly enough to match the market’s pace. “The final goal should be to guarantee the provision of inexpensive, renewable energy to the final user,” said Medina.

INDUSTRIAL INFRASTRUCTURE KEY FOR MEXICO’S ADVANCED MAN UFACTURING

The nearshoring trend could position Mexico as a key destination for global manufacturing; however, attracting traditional manufacturing is not as much of a priority as attracting advanced manufacturing. This demand, driven by automation, technology, and complex supply chains, requires a different class of industrial infrastructure and, critically, stable investment conditions.

“We are in a delicate geopolitical situation, facing tariff wars between the United States and its partners and non-partners, alongside the conflicts in Ukraine and Israel. This, compounded by the USMCA review in July 2026 and the US midterm elections, positions trade in an interesting yet challenging situation,” said Salomon Noble, CEO, Intermex, during the Mexico Business Summit 2025 in Monterrey, Nuevo Leon.

“Advanced

manufacturing consumes 60% of Mexico’s energy, and demand is expected to increase by 40% by 2037. However, this statistic does not even account for the necessary demand from data centers supporting AI; we need to co-invest”

Javier Lomelin Managing Director | Colliers Mexico

Key requirements now include robust power capacity to support automation, data redundancy for “smart” factories, and facilities that meet high ESG standards, which is reshaping investment strategies. The focus is moving away from purely speculative, basic warehouses and toward complex Build-to-Suit (BTS) projects. “Pre-leasing rates are at 70% has caused a shift from speculative construction to BTS projects,” noted Javier Lomelin, Managing Director, Colliers Mexico.

Some other developers opt for a spec-tosuit approach, which combines the speed of a turnkey project with the customization of a BTS. Developers start construction on a speculative building with a general design and then make specific adjustments midway through the process to meet a tenant’s needs. These customizations often include technical specifications like higher-than-standard roof heights, reinforced foundations for heavy machinery, and flexible layouts easily adapted for different industries.

Financing Industrial Assets: ESG Matters

To meet this new standard, tenants in advanced manufacturing, including the automotive, medical devices, and electronics sectors, are seeking facilities with higher technical specifications. “If we wait for companies to set up silicon chip manufacturing plants, we are still very far off,” Noble noted, “realistically, Mexico can and should focus on attracting Assembly, Testing, Packaging (ATP), which requires specific infrastructure.” Consequently, investment is shifting to build the infrastructure they need for larger parks and technologically advanced, sustainable, and integrated ecosystems.

Building this new class of infrastructure is capital-intensive, so developers and Mexican real Estate Investment Trusts (FIBrAs) are utilizing different models to fund these projects sustainably. Experts stress that capital for Mexico’s industrial infrastructure is available, but investors universally demand clear and reliable conditions. Noble says this includes certainty, security, and equity for private capital, warning that not having these undermines investment. He noted that the continued participation of FIBrAs, which are largely funded by AFOrEs, is fundamental, and these funds require confidence to keep committing capital.

Furthermore, given the complexity and scale of the required infrastructure works to sustain industrial investment, financing structures like Public-Private Partnerships (PPPs),

similar to the existing FIBrA E structure, must be utilized. “The key element is certainty; you cannot invest money in a project if the rules change while you are in the middle of executing it,” stressed Noble.

There is a growing convergence of finance and sustainability. Instruments like green bonds and sustainability-linked credit lines are being used more frequently. This is not just a general trend; according to the Mexican Association of FIB r As (AMEFIB r A), 39% of all debt issued by its members between 2020 and 2025 was linked to green bonds or sustainable performance indicators.

Investors are increasingly linking capital to developers who build energy-efficient, water-saving, and low-emission facilities. These financial instruments often directly tie a loan’s terms, such as its interest rate, to the developer achieving specific KPIs. Tracking these KPIs is yielding tangible results: AMEFIBrA members have already certified over 8 million m² with international environmental standards, increased renewable energy use in their portfolios from 16% to 21%, and are advancing toward a Net Zero goal. This is becoming both an environmental and a financial imperative, as multiple leaders have noted that companies with strong ESG practices tend to be more profitable and sustainable long-term.

Financing models are also evolving to include more partnerships and de-risking structures, such as joint ventures and longterm lease pre-commitments, to ensure projects are viable and aligned with longterm market demand.

Parks as Integrated Ecosystems

To attract and retain advanced manufacturing, operators are transforming their properties from simple collections of buildings into integrated service ecosystems. “Advanced manufacturing consumes 60% of Mexico’s energy, and demand is expected to increase by 40% by 2037. However, this statistic does not even account for the necessary demand from data centers supporting AI; we need to co-invest,” Lomelin said.

To address these risks, industrial users are becoming more active energy managers, exploring solutions that provide autonomy and resilience. This includes adopting risk mitigation strategies like backup generation and energy storage, and exploring behindthe-meter or isolated supply models. In response, power producers are designing hybrid models that combine renewable generation with storage, moving beyond traditional, fixed-price contracts toward more modular and flexible Power Purchase Agreements (PPAs).

Beyond this power component, other valueadds are becoming standard. Lomelin emphasizes that this requires the optimization of processes, permits, and licenses through the reduction of time and costs for project development. “We can achieve this through industry associations and interaction with authorities,” he said. These value-adds include private water treatment plants to address scarcity, 24/7 security with advanced monitoring, and high-capacity fiber optic networks to support data-heavy operations.

BUILDING MEXICO’S NEXT-GEN INDUSTRIAL INFR ASTRUCTURE

The nearshoring boom is accelerating the evolution of Mexico’s industrial landscape, shifting demand from just more space to a

new class of infrastructure. This transition is forcing developers, investors, and builders to redefine the standards for a modern

“Buildings must be physical digital ecosystems that self-optimize over time, meaning they must be very flexible to integrate future requirements, such as small modular reactors for the digitalization era”

Juan Paulo Mendoza Managing Director Work Dynamics - Industrial | JLL

industrial park. Delivering the industrial space, this nearshoring boom will demand broad collaboration to address significant technical and regulatory challenges, said experts during the Mexico Business Summit 2025 in Monterrey, Nuevo Leon.

“In practice, next-generation infrastructure in Mexico means Class A industrial buildings with technical specifications that can accommodate heavy automation, and industrial parks with robust infrastructure, services, and administration,” said Javier Llaca, COO, Fibra MTY.

Industrial park managers note that tenants are demanding buildings with sophisticated roofing and wall systems that use high-performance insulated panels to ensure thermal efficiency, reduce energy consumption, and lower operational costs.

“The most common construction method in Latin America is concrete; an insulated metal panel offers a more attractive speed of construction and circularity. Unlike concrete, a panel like this is practically completely recyclable, with the technology available locally,” said Guillermo Hornelas, Director General, IsoCindu, adding that the energy efficiency insulated metal panels offer is highly relevant in Mexico, a country with large bonded assembly plants and energy hurdles, directly impacting operation costs.

Beyond the building shell, specifications include stronger foundations to support automation and heavy machinery, higher clear heights, and robust power and data/ resource redundancy to support modern

factory operations. These features are baseline requirements, often tied to global LEED or EDGE certifications as tenants push to meet their own corporate ESG goals. “Nearshoring requires faster, smarter, and more sustainable infrastructure. The challenge is not just attracting investment, but delivering the infrastructure at the correct cost and time, and with global standards,” Mario Salazar, Executive Liaison Coordinator of Institutional relations, CMIC.

To anticipate these and other trends, managers maintain strong communication with clients about their short-to-mediumterm plans, as well as with brokers and industry associations. This proactive management extends to infrastructure like water and electricity, where managers must adapt to the available infrastructure in high-demand areas. In terms of water, this includes installing low-consumption systems and analyzing the possibility of treating and reusing water to offer a second or third use to clients.

r egarding electricity, the challenge is more complex. In areas with high demand and low supply, the primary strategy is to make that limited supply flexible. Managers work with tenants to understand the exact capacity they need and develop a plan for how they can grow once they are operating. This often involves securing agreements for energy supply to provide gradual increases in capacity based on a client’s scaling needs.

However, clients increasingly understand that if a zone does not have sufficient energy, they may have to produce it onsite. To do this sustainably and without affecting the operation’s economy, the most viable option is often natural gas. “Infrastructure is a bottleneck, primarily energy,” Llaca confirmed. “We are investing in turbines, something I had not seen since the start of FMTY. Isolated supply is, in some cases, the only solution to the energy shortage,” he noted.

Expanding the natural gas network is seen as a key strategy that would solve many

of these energy problems and eliminate doubts for potential clients. At the same time, it is also necessary to improve the existing electrical grid’s efficiency to avoid power cuts, spikes, and voltage variations.

However, the sheer speed of this new demand is creating bottlenecks in project execution. Factors such as protracted permitting times, limited skilled labor availability, and supply chain disruptions for critical construction materials can all contribute to project delays. “The construction industry is the second most inefficient, surpassed only by agriculture in terms of efficiency and innovation. Nine out of ten projects globally are delivered behind schedule and over budget, and 30% of the work on any construction site is rework,” noted Eduardo Orozco, regional Business Director, Trimble.

To overcome these hurdles, leading firms are implementing strategies centered on digital technology and project management. The most critical tool is the adoption of digital construction technology, such as Building Information Modeling (BIM). “If we use BIM methodologies, we can begin designing with the intent of impacting the operation phase, which carries the greatest cost in the life cycle,” said Orozco.

These platforms allow teams to create a complete digital twin of a project before breaking ground. This digital-first approach enables better collaboration, identifies design clashes early, optimizes material procurement, and provides clear data analytics for project managers. “Any error corrected in the design phase increases the cost 10 times over; in the construction phase, it is 100 times that, and in the operation phase, it is 1,000 times that,” Orozco noted.

Designing Future-Proof Industrial Ecosystems

The strategic focus is also expanding from the individual building to the entire industrial park. Leading developers are implementing collaborative design and construction strategies to create futureproof ecosystems, ensuring parks are ready for the challenges of tomorrow.

This means moving beyond simply offering serviced land. The new model involves deep collaboration between developers, Engineering, Procurement, and Construction (EPCs) and utility providers to plan and integrate essential infrastructure from even before day one. “The bottleneck is that buildings are designed thinning in the operation, but not in the maintenance phase. Every dollar spent in the design phase thinking about long-term maintenance can save up to US$10 in operational costs,” said Juan Paulo Mendoza, Managing Director Work Dynamics - Industrial, JLL.

Furthermore, this ecosystem approach now includes human infrastructure. Parks are increasingly designed to attract and retain skilled talent by incorporating public transportation access, green spaces, and worker amenities, making them true centers of competitiveness. “Buildings must be physical digital ecosystems that self-optimize over time, meaning they must be very flexible to integrate future requirements, such as small modular reactors for the digitalization era,” concluded Mendoza.

OPTIMIZING FREIGHT MOVEMENT: THE FUTURE OF INTERMODAL LOGISTICS

Mexico’s logistics landscape is evolving as global disruptions push manufacturers to strengthen supply chain resilience. Companies are moving away from the traditional Just in Time model toward strategies that include greater inventory protection, diversified routing, and multimodal redundancy. This shift is reshaping service expectations and risk management requirements for transport operators, particularly those involved in cross-border logistics.

Freight transport stands as the backbone of Mexico’s foreign trade, trucking accounts for 3.78% of the GDP and moves 81% of land cargo and 57% of domestic freight, connecting production sites, ports, customs facilities, and consumer hubs. Without adequate drivers, industries like construction, electronics, and automotive, which heavily rely on trucking, face potential supply chain disruptions. Its performance directly influences national competitiveness, security, and economic stability. Heading into 2025, the sector faces a convergence of pressures: tariff volatility, geopolitical uncertainty, driver shortages, inflationary dynamics, and persistent security risks on key freight corridors, writes Augusto ramos, Vice President, rAME Autotransportes.

“Understanding the shifting paradigms in intermodal transport is crucial. r ising pressure on inventory management and storage costs, along with growing demand for traceability and compliance, make resilience more vital than ever. reliability has become a key expectation. Intermodal transport is not a substitute for trucking but a multiplier that enhances overall efficiency and connectivity across the logistics network,” says ramos.

North America Trade: Growth and Uncertainty

Maintaining efficiency at the Mexico-US border has become central to national competitiveness. Although Mexico remains the United States’ top trading partner,

infrastructure constraints continue to generate operational frictions. From January to July 2025, Mexico’s exports to the US increased 6.5% year-on-year to US$309.7 billion, driven by automotive and electronics manufacturing. This growth places added pressure on intermodal capacity, inspection systems, and customs procedures, MBN reports.

However, recent tariff measures in the United States have raised costs across supply chains. Import duties of 100% on semiconductors, 50% on steel and aluminum, and 25% on vehicles have already contributed to profit declines exceeding 30% for General Motors, while Stellantis has reported multimillion-dollar losses. Analysts warn that these conditions may tighten further as the USMCA undergoes review, potentially affecting rules of origin enforcement and inspection protocols.

Infrastructure and Intermodal Strategy

Government policy aims to support logistic integration. The 2026 Federal Expenditure Budget allocates MX$104.5 billion (US$5.59 billion) to rail development to reinforce freight mobility and strengthen Mexico’s role in North American supply chains. Funding also advances south-southeast connectivity projects, including MX$30 billion (US$1.61 billion) for the Mayan Train freight service and MX$25 billion for the Interoceanic Corridor of the Isthmus of Tehuantepec. These projects seek to establish new intermodal hubs linking ports, railways, and industrial centers.

Complementary investments in highways such as Ciudad Valles–Tampico and Saltillo–Monclova, combined with the rollout of 15 regional Well-Being Hubs, reflect a broader infrastructure modernization agenda. These initiatives are aligned under Plan México, a federal strategy focused on logistics, energy distribution, regulatory simplification, and financial incentives to support nearshoringdriven industrial expansion.

Customs modernization plays a critical role in enabling seamless freight movement. Mexico’s Senate recently approved reforms to strengthen digitalization, traceability, and trade enforcement without introducing new taxes. The changes will take effect on Jan. 1, 2026 and aim to reduce border delays, improve transparency, and streamline documentation. Both Mexico and the United States are exploring interoperable platforms for real-time tracking, digital pre-clearance, shared databases, and mutual recognition of compliance programs.

“The most important thing is alignment between the public and private sectors. Mexico’s progress and modernization depend on coordinated infrastructure investments placed where they are truly needed. There’s no point in having a state-of-the-art port if the connecting roads are in poor condition. While Mexico has evolved, demand has outpaced progress, and we must move faster. Connectivity is key, progress will only come if both sectors invest strategically and jointly, integrating technology to ensure cohesive and sustainable development,” explains Verónica González, Director, North America Surface Transportation Mexico, CH robinson.

Cross-Border Challenges: Workforce, regulation, and Security

While the opportunities are significant, the sector must also grapple with major challenges, such as a shortage of operators,

changing regulations, and a rise in cargo theft. In 2023, the sector had a deficit of 56,000 positions, which is projected to nearly double to 106,000 by 2028, according to the National Chamber of Cargo Transportation (CANACAr). This shortage poses significant risks to Mexico’s road freight transport market, which is expected to grow from US$43.13 billion in 2024 to US$59.02 billion by 2030 at a CAGr of 5.37%.

“Freight transport in Mexico faces highly complex conditions in three main areas: competitiveness, asset security, and road safety. Companies struggle to access the resources needed to remain competitive, while cargo theft, now at crisis levels, represents losses equivalent to nearly 2% of GDP. road safety is another major concern, with Mexico ranking second globally in the growth of traffic accidents, despite international efforts to reduce them. However, these challenges also present opportunities. By leveraging innovation, particularly artificial intelligence, Mexico can strengthen competitiveness, enhance security, and turn these systemic weaknesses into long-term advantages,” shares Omar Camacho, General Manager Latin America, Motive.

Stakeholders also point to regulatory pressures affecting cross-border trucking. In the United States, intensified enforcement of English-language requirements has resulted in Mexico-domiciled drivers accounting for about half of all 27,971 US Federal Motor Carrier Safety Administration (FMCSA) violations recorded in 2025. Non-compliance can trigger Out-of-Service Orders that halt freight and disrupt delivery schedules.

Greg Arndt, Co-President, Jade Transport and Chair of the Canadian Trucking Alliance (CTA), calls for greater digitalization of crossborder documentation, proposing a regional single-window system and joint customs inspections to reduce administrative burdens and eliminate penalties for minor errors.

Meanwhile, cargo theft is escalating in sophistication, with criminals using tactics such as fake checkpoints, armed convoys, and

signal jammers. Federal initiatives including the “Zero Theft” plan have targeted highrisk corridors such as Mexico-Queretaro and Mexico-Puebla. However, stakeholders underscore the need for intelligent surveillance and secure transport zones, coordinated enforcement among federal and state authorities, and private sector co-investment in defensive technology, says ramos.

“Mexico cannot rely on a single highway or one border crossing like Laredo for most of its trade. Diversifying routes and modernizing border infrastructure are essential for efficiency. Domestically, distribution models must evolve, moving beyond the

concentration of warehouses in Mexico City and adopting more strategic, regionally balanced logistics networks adapted to Mexico’s realities, states Walter Campos, Executive Director General, GlobalTranz.

The future of intermodal logistics in Mexico will depend on the coordination of multiple factors: infrastructure expansion, regulatory alignment, digitalization of border processes, and operational modernization. As nearshoring accelerates, ensuring capacity for rail intermodal flows, port handling, and terminal operations is a pressing priority for both public authorities and private logistics providers.

UNLOCKING MEXICO’S RAIL LOGISTICS POTENTIAL

Mexico’s freight and logistics industry is approaching a major inflection point.

Diversification of supply chains and sustained industrial growth are driving a reconfiguration of cargo flows across the country.

The country’s logistics backbone remains disproportionately dependent on trucking. According to CANACA r , roads handled 57% of domestic freight in 2023, while rail contributed just 13.25%. “The growth of Mexico’s export capacity is significant and continues to rise,” says Paul Hirsch, AVP Mexico Business Unit, BNSF r ailway.

“Mexico’s GDP growth over the last 10 years has averaged 1.5% or 1.6%. However, looking specifically at the exports we move

to the United States over that same period, our growth has been 7%, four times more than Mexico’s GDP growth,” he added. This export dynamism, coupled with the reliance on trucking, strains highway infrastructure, increases emissions, and drives up logistics costs that ripple through the broader economy. This imbalance strains highway infrastructure, increases emissions, and drives up logistics costs that ripple through the broader economy, MBN reports.

Scaling Intermodal Transport to Strengthen Competitiveness

Intermodal transport is gaining momentum as a viable counterweight to road-dominated logistics. “We have to divide train cargo into two types: commodities, which grow slowly, perhaps 1% or 2% annually, tied closely to consumption; and intermodal, which can have a much more significant growth expectation, even double digits, depending on the new products and new sales offered,” said Francisco Fabila, President, Association of Mexican r ailroads. By enabling sealed containers to seamlessly transfer across rail, truck, and maritime modes, intermodal expands reach while reducing theft, handling, and fuel consumption. “There is a clear opportunity for intermodal growth, as many goods currently moved by truck could shift to rail,” says Hirsch. He explains that rail’s

competitive advantage lies in intermodal, which utilizes fast, scheduled container trains designed to challenge trucking directly.

In March 2025 alone, Mexico’s rail network moved 81,598 containers, equivalent to 0.82 million t, reports ArTF. Ferromex and Kansas City Southern de México accounted for nearly 97% of this activity. Ferrovalle handled 550,000 TEUs in 2024 and now manages the largest inland intermodal terminal in Latin America. Shifting long-haul cargo to trains while reserving trucking for first and lastmile delivery has already driven double-digit growth along key corridors such as Mexico City-Mexicali.

Intermodal transport can reduce logistics costs by up to 70% depending on the route, and lower environmental impact by up to 75%. Theft risk can fall to 0.5% on secured rail corridors. In parallel, the trucking workforce deficit, which stands at 56,000 drivers now and could exceed 100,000 by 2028, creates freight bottlenecks that rail can offset. A single train can replace up to 240 trucks on highways.

“Intermodal is a more cost-effective, scalable, and secure alternative that improves operating margins and inflation outcomes,” says Diego Anchustegui, Commercial Director, Transportes EASO, and President, AMTI.

Structural Barriers Slowing Adoption

Despite its numerous benefits, intermodal progress remains limited at just 5% of Mexico’s logistics market. Knowledge gaps, coordination challenges, and customs

“We have to divide train cargo into two types: commodities, which grow slowly, perhaps 1% or 2% annually, tied closely to consumption; and intermodal, which can have a much more significant growth expectation, even double digits, depending on the new products and new sales offered”

Francisco Fabila President | Association of Mexican Railroads

complexity continue to slow adoption. “One of the biggest barriers is that customers expect the same speed and processes as trucking. Intermodal requires collaboration and different planning,” says Adriana Muñoz, General Director Mexico, Matson Logistics.

Inland customs clearance remains a major hurdle for cargo owners accustomed to borderbased processing. rail operators emphasize the need for greater digitalization, automation, and shared platforms to support seamless intermodal networks. “It is hard to believe that, to this day, a paper-based customs declaration still has to be presented for a container movement. The customs requirements in a terminal in Monterrey are different from those in Silao, despite the cargo being the same commodity going between the same two countries. We need to simplify and homologate these processes,” Hirsch stressed.

“Customs must maintain the same regulatory standard and be seen as allies and hubs of efficiency, not just national security. We see that one customs office can be more efficient or better equipped than another,” Fabila further stressed. Furthermore, intermodal terminals serve regional markets rather than full end-to-end logistics, requiring additional infrastructure planning for distribution within a 200km–300km radius.

Cross-Border Integration Under USMCA

USMCA provides the framework for a highly integrated continental freight system, and cross-border rail momentum continues to grow. Between January and October 2025, Mexican railroads moved over 1 million carloads and intermodal units, which represents a 4.4% decline compared with the same period in 2024, according to AAr

Growth will be propelled by new services that elevate speed, visibility, and reliability. Schneider has cut transit times between Mexico and Chicago by 50% on CPKC rail. J.B. Hunt, BNSF, and GMXT launched Quantum de México in May 2025, offering real-time visibility, 24/7 oversight, and a 95% on-time

performance. Additional opportunities lie in streamlining customs processes, improving interchange coordination, and expanding rail-served industrial space at strategic border nodes.

Experts agree that while authorities have made efforts, they are often isolated. “There are positive efforts in terms of improving regulation, but they are isolated efforts. The next challenge is to standardize these small achievements across all customs offices and internal processes nationally,” Fabila noted, stressing the importance of taking into account the effects on the private sector of every change to avoid restrictive regulations.

Interoceanic Corridor’s roll

Led by the Mexican Navy (SEMA r ), the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) is emerging as an effort to reshape the country’s logistics geography through 1,200km of rehabilitated rail, modernized ports in Coatzacoalcos, Salina Cruz, Dos Bocas and Puerto Chiapas, and a network of industrial development poles offering tax incentives to attract investment.

The corridor’s long-term strategy, set out in the Institutional Program of the

Interoceanic Corridor of the Isthmus of Tehuantepec (PICIIT) 2025-2030, targets stronger multimodal connectivity, new high-value manufacturing hubs, and greater policy coordination across four southern states that together represent a population of more than 5 million.

The plan aims to position Mexico as a competitive global bridge, offering shippers a cost-efficient alternative to congested California gateways and a more reliable option than the drought-constrained Panama Canal. Emmanuel Neri, Head of the Investment Promotion and Business Development Unit, CIIT, noted the project has 10 Development Poles along the 300km route, nine of which are already conceded. “By the end of the next year, Puerto Chiapas will be connected to Coatzacoalcos, and by mid-2027, Dos Bocas will be connected with a new 98km stretch that will join the FA line,” Neri added.

Since 2019, the region tripled formal employment and lifted 2.3 million residents out of poverty, while the four CIIT ports now move nearly one-fifth of all cargo handled nationwide. Officials expect future capacity to reach 13 million TEUs per year once fully operational.

POWERING INDUSTRIAL GROWTH: ENERGY SOLUTIONS FOR MAN UFACTURERS

Mexico’s manufacturing footprint is being reshaped by nearshoring, expanded industrial park investment and longer production runs that push utility demand both upward and toward greater continuity. recent estimates and market reports show the combined heat and power (CHP) market for Mexico growing at a mid single-digit CAGr and global CHP investment accelerating as manufacturers seek higher thermal and electrical efficiency. At the same time, industrial park investment and the opening of new manufacturing capacity across the Bajío, Nuevo León and border regions are creating concentrated nodes of very high and predictable load growth. Those two dynamics together explain why reliability and integrated energy

services have moved from “nice-to-have” to core operational priorities for manufacturers.

According to Guadalupe Paredes, Director at Luxem, one of the main challenges for companies lies precisely in energy availability. “Companies want to increase their consumption, but the grid itself does not allow them to. We face an infrastructure gap that must be addressed so industries can continue growing their production and meet their longterm plans,” he said.

The technical evolution of manufacturers’ energy and utility demands is clear and measurable. Modern production lines require power with narrow voltage and frequency

tolerance, predictable harmonics, and immediate response to transient events as automated robotics, precision processes and continuous thermal stages are sensitive to even brief anomalies. Manufacturers now quantify energy risk in terms of yield loss per minute of outage, lost contractual hours, and increased maintenance costs from repeated brownouts. Furthermore, thermal loads, steam, process heating, hot water, and chilled water are no longer separable from electrical needs: integrated heat and power capability directly influences process efficiency, footprint, and emissions accounting.

A number of recent industry deployments show CHP being used not only to cut energy cost per unit produced, but also to reduce greenhouse gas intensity while delivering baseload resilience. In many cases, these systems form the bridge between current energy realities and the future of cleaner, distributed generation.

As Edmond Grieger, Partner at Von Wobeser y Sierra, observed, “Mexico’s energy sector is evolving into one with clearer rules. There is still uncertainty, as we are in the midst of an energy transition, and all transitions are complex—but the key is to navigate it with the right allies.”

Specific on-site solutions that manufacturing operations increasingly view as non-negotiable include gas-fired CHP, dedicated natural gas generation with fast-start reciprocating engines or small gas turbines, hybrid microgrids that combine gas generation and battery storage, and dual-fuel capability for critical units. CHP delivers the combined value of electrical output and captured thermal energy, raising overall site efficiency from typical separate generation and boiler systems of 40 to 60% up to 70 to 85% in many installations. For manufacturers that depend on uninterrupted steam or hot water

simultaneously with power, CHP is functionally a reliability and competitiveness lever, not just an efficiency project.

Where pipeline access and firm gas supply exist, on-site gas generation can be sized to carry entire critical loads or to run in parallel with grid service under islanding arrangements. For industrial corridors where pipeline constraints remain, companies are adopting redundant gas supply contracts, onsite storage or CNG solutions for transportable backup supply. Eugenio Fernández, COO of Legand, explained that the core problem is not technical but structural. “The main challenge is where the energy actually is. More than an issue of steel, lines or generation plants, it’s the lack of coordination between federal authorities, CFE, CENACE, SENEr, and the industries. There’s a total disarticulation between where transmission lines are built and where new investment is taking place.”

Securing future-ready power supply in Mexico’s high-growth corridors requires addressing three interlinked challenges: pipeline and fuel availability, regulatory clarity, and interconnection capacity. Energy intermediaries and retailers such as Luxem are playing an increasing role in packaging stable electricity and gas supply contracts that smooth exposure to US gas index volatility while offering bundled energy services. “In the new regulation, we are seeing emerging figures such as self-consumption,” added Paredes. “I think it’s the government’s initial patch because energy infrastructure takes time to develop. The quickest way to help industrial users meet their consumption needs was through this selfconsumption model.”

Legal and regulatory advisers such as Von Wobeser y Sierra are becoming indispensable partners where complex permitting, contracts for interconnection or offtake, and evolving secondary laws can materially change project economics. As Grieger emphasized, navigating that complexity requires collaboration. “Transitions are complicated, but with the right partners, it is possible to manage risk and take advantage of the new clarity emerging in the sector,” he said.

All parties must collaborate early: manufacturers, gas suppliers, IPPs, and industrial park developers need joint feasibility studies, coordinated interconnection planning, and shared long-term offtake structures to make pipeline builds and compression investments bankable. Fernández added that “for companies entering Mexico, finding an expert consultant is essential to secure the infrastructure and energy supply they need efficiently. Sometimes companies overrequest and saturate the system, removing capacity from other potential users. Energyas-a-Service can be a good option—having a third party that mitigates risk with PPA contracts, giving industrials certainty without requiring CAPEX, while ensuring reliable supply.”

Financially, manufacturers are abandoning one-size-fits-all procurement and shifting to blended models that align capital, operations and risk allocation. Successful arrangements observed in practice include build-ownoperate models for on-site CHP or generation assets, long-term energy service agreements with guaranteed availability and performance metrics (availability, heat delivery, ramp rates), and captive co-investment where manufacturers own equity in a plant located inside an industrial park. Third-party PPA models remain attractive where balance sheet or operational bandwidth is constrained, because they transfer construction, permitting and fuel contracting risk.

Project finance with take-or-pay clauses for gas deliveries and availability payments for dispatchable capacity are becoming common, and some manufacturers are obtaining preferential financing from development banks when energy projects incorporate measurable emissions reductions. These financing structures allow manufacturers to treat energy as an asset that supports throughput and margin rather than an unpredictable cost center.

A frequent communication gap between energy technology providers and manufacturing operations teams is rooted in different languages and success metrics.

Operations teams speak of mean time between failures, quality yield thresholds and allowable process excursion durations. Energy providers often present capacity, heat rates, levelized cost and emissions intensity. The practical solution is to start with joint load profiling, thermal mapping and failure mode analysis so that design targets are defined by production pain points rather than by generic efficiency metrics.

Energy providers must invest time in factory floor walkthroughs, test scenarios, and reliability simulations. Manufacturers must accept lifecycle O&M realities, fuel quality constraints and permitting timelines. When both sides commit to transparent KPIs, projects are far more likely to meet production reliability targets. “For industrials, having a strategic energy ally is crucial,” Paredes added. “What matters is staying close and forming partnerships so these companies have the support of experts who understand the sector. It’s also important to consider the end user’s role. The government is now including controllable demand in regulations, giving weight to what end users do to help stabilize the grid.”

Beyond technical concerns, the largest nontechnical risk remains policy and regulatory uncertainty. Mexico’s evolving secondary laws and changes to market roles create potential shifts in tariffs, interconnection rules and permitting pathways that can change project bankability over a plant’s multi-decade lifespan. Gas price linkage to US indices, social acceptance for new pipelines, and possible changes in environmental or emissions rules further complicate long-term planning.

The most effective strategy manufacturers are using is diversification: combining longterm firm contracts, local or CNG backup, modular CHP that can be scaled, and active regulatory engagement or legal hedging. Panel participants agreed that bringing together regulatory, supply, commercial and legal perspectives is the only way to design resilient packages that align legal structure, gas logistics and plant reliability with the exigencies of modern manufacturing.

SMART FACTORIES, SMARTER TALENT: BRIDGING THE DIGITAL SKILLS GAP

Mexico’s advanced manufacturing sector is undergoing a profound shift driven by automation, AI integration, nearshoring, and emerging technologies such as EVs and robotics. While the country benefits from a young, technically skilled workforce and the largest STEM talent pool in the Americas, structural gaps persist, agreed experts at Mexico Business Summit 2025. Many professionals hired do not fully meet role requirements, and talent remains concentrated in major urban centers.

“Mexico has a historic opportunity. The country is a manufacturing pillar in Latin America,” said r odrigo García, General Manager, GA r OCE, highlighting the strategic importance of the sector.

These dynamics are reshaping workforce expectations: companies now require employees with advanced technical competencies, strategic problem-solving abilities, and adaptability to continuously evolving digital tools. The automotive and aerospace industries illustrate the urgency: manual tasks are declining, while innovation-oriented roles demand engineers and technicians capable of sustaining high-tech production, design, and r&D initiatives.

“Supply chains, broken by the pandemic, remain broken due to wars and other disruptions. This demands an increase in productivity, which in turn calls for adaptability in human talent,” explained Pablo Sillas, Human r elations Director, Grupo DEACErO.

Essential digital skills in advanced manufacturing include AI and machine learning, data science and analytics, cybersecurity, software development, robotics, and digital project management. Organizations prioritize acquisition through upskilling, reskilling, and cross-skilling existing employees, while also recruiting specialized talent externally.

Effective strategies combine the “Build, Buy, Borrow” model: developing internal talent, hiring strategically, and leveraging projectbased or fully outsourced professionals for immediate needs. Digital learning platforms and AI-powered talent ecosystems provide personalized training paths, micro-credentials, and direct employment connections. Collaboration with universities, industry clusters, and public institutions ensures that curricula and programs align with practical manufacturing requirements, including hands-on technical training in EV, aerospace, and automation technologies.

“Long ago, employee training used to take place every year or every six months. Now, Industry 4.0 demands continuous training,” noted rafael Navarro, CEO, Human Quality, emphasizing the need for ongoing skill development.

Organizations face multiple barriers: regional talent imbalances, limited access to training for under-resourced employees, resistance to cultural change, and integration with legacy systems. Highly skilled professionals increasingly expect flexible roles, global career pathways, and access to innovationdriven projects, complicating talent management, shows data from the ILO.

Beyond technical skills, fostering a culture of continuous learning and digital adoption is critical. Change management strategies include promoting inclusivity, supporting multi-generational learning, leveraging AI for objective talent assessment, and implementing predictive analytics for retention and workforce planning. These approaches help align employees with organizational digital objectives while supporting operational agility.

“It is not possible to implement AI without a robust data system. It is like constructing a building without foundations,” stated rodrigo Piña, Chief Human resources Officer, Ternium. However, technology is not a one-size-fits-all,

nor the end goal. “Technology is not an end in and of itself; it is necessary to adapt it to the needs of every company,” said García, underlining the importance of practical implementation over technological hype.

“Supply chains, broken by the pandemic, remain broken due to wars and other disruptions. This demands an increase in productivity, which in turn calls for adaptability in human talent”

Pablo Sillas Human Relations Director | Grupo DEACERO

hubs, particularly in EVs, aerospace, and automation. “Mexico is closely competing with China, which has 800 robots for every 10,000 workers,” highlighted Sillas, illustrating the competitive pressures driving digital talent investment.

Adopting technology, however, does not mean disregarding talent. “When using AI, a human is always necessary to ensure that the information it reports is correct,” said rodrigo Carrasco, Business Development Leader for Latin America, UKG. Adaptation is crucial: “Technology should be easy to use. An ideal scenario would be to allow employees to work from their mobile phones,” reinforcing the need for accessible, human-centered tools.

Mexico’s manufacturing sector is moving from production toward r&D and innovation

Investments in digitally skilled talent are expected to improve productivity, operational efficiency, and decision-making. Metrics for measuring impact include reduced time-to-hire, lower turnover, increased skill proficiency, enhanced workforce traceability, and faster adoption of AI-enabled processes. Public-private partnerships, talent tech platforms, and AIdriven upskilling ecosystems are expected to continue strengthening the pipeline of digitally capable professionals.

By integrating workforce readiness with strategic innovation, companies can sustain competitiveness, enable technological autonomy, and maximize the r OI of their talent development programs.

“AI and data are not at the center, humans are. These are just tools meant to support humans,” concluded Sillas, underscoring the essential role of people in driving digital transformation. HOLISTIC

Mexico’s workforce is at a critical crossroads. Long working hours, rising stress levels, and chronic health conditions are not only affecting employees’ well-being but also eroding productivity and increasing costs for businesses. Organizations can no longer treat wellness as an optional perk; embedding holistic well-being into corporate strategy has become a business imperative, highlighted experts at Mexico Business Summit 2025.

“Mental health is not an additional benefit, but a critical factor for companies’ operations and long-term sustainability objectives,” said Beatriz r obles, Director, Manpower LATAM. Companies that proactively address physical, mental, and financial health are seeing measurable

gains in engagement, retention, and overall performance, making well-being a key driver of resilience and competitiveness.

Mexicans are among those that work the longest hours globally, and roughly onethird report work-related stress or burnout. This has steep economic consequences: stress and health-related absenteeism in Mexico can erode productivity by about 40%. At the same time, chronic illnesses, such as obesity and cardiovascular disease, and rising healthcare costs impose growing burdens on employers.

Mental health awareness is surging, and employees now expect more than basic benefits. “A satisfied and happy person will do a better job, which will benefit the

company,” says Óscar García Zato, Director General Mexico, Grupo EU-len.

In this context, integrating preventive health and holistic well-being into corporate culture has shifted from a “nice-to-have” perk to a strategic business priority. Companies investing in comprehensive wellness see lower healthcare costs, reduced absenteeism, higher engagement, and greater ability to attract and retain top talent. A healthier workforce, in turn, drives innovation and productivity, boosting longterm financial performance.

Industry leaders in Mexico are responding with multi-faceted wellness strategies. Telehealth platforms and wearable fitness devices make preventive care more accessible, allowing employees to consult doctors or track health metrics from anywhere. “Employee health has become a key imperative for companies. It is no longer enough to address health matters, they must be prevented,” emphasizes Beatriz robles, Director, Manpower LATAM.

Companies are forging partnerships to provide on-site screenings and early disease detection directly at workplaces. Holistic wellness programs now bundle physical fitness, nutrition, mental health support, and even financial counseling into a unified benefit. “At Grupo Comercial Control, we work to increase awareness among employees of the benefits of prevention. We also invest strongly on training,” explains Alejandro Hernández, Chief People Officer, Grupo Comercial Control.

For smaller suppliers, social responsibility has become a differentiator. “Small suppliers interested in working with major companies must now focus on deploying

“The higher the employee’s well-being, the higher the productivity. The higher the productivity, the more the company grows”

José Manuel Bas Human Resources Director | GNP Seguros

social sustainability practices,” says Juan Carlos Meade, Director of Strategic Alliances, Ministry of Equality and Inclusion Nuevo Leon.

Companies wanting to improve their wellness approach can take different routes:

+ Embedded daily practices: Integrate wellness into routines, such as walking meetings, group fitness breaks, or stress-relief events, so health becomes part of the workday.

+ Proactive care programs: Offer regular checkups and screenings on-site to catch issues early and promote a culture of self-care.

+ Digital and innovative benefits: Expand telemedicine, mental health apps, and flexible insurance covers. “Insurance costs are skyrocketing and keeping them down is a priority. Prevention is essential to address this problem,” notes José Manuel Bas, Human resources Director, GNP Seguros.

+ Data-driven customization: Use analytics to understand employee health risks and preferences. Wellness firms leverage usage data to personalize offerings and address barriers, increasing active engagement.

Transitioning to proactive well-being poses practical challenges. Employee engagement is a common hurdle: in Mexico, only about 40% of adults exercise regularly, often citing lack of time. Employers must overcome such barriers by making wellness convenient and culturally relevant. r esource constraints are another challenge: companies need to balance up-front wellness program costs with the promise of long-term rOI. Hr teams and leadership must collaborate closely with insurers, tech vendors, and medical providers to align goals. results can be measured with different approaches:

+ Leadership buy-in and culture change: Company leaders model healthy habits and openly prioritize well-being so programs feel genuine.

+ robust metrics and feedback loops: Track key indicators such as

absenteeism rates, turnover, employee Net Promoter Score (eNPS), and survey feedback to measure impact. “Companies often do not consider that once an employee leaves a company, their knowledge and experience also leaves,” warns Óscar García Zato, Director General Mexico, Grupo EU-len. Firms monitor how wellness policies affect productivity and retention. reducing stress-related absenteeism, which alone can slash productivity by roughly 40%, is a clear target.

+ Cross-functional coordination: Hr must develop new competencies in data analysis and change management to guide wellness strategy. Collaborating with operations and finance ensures programs scale effectively.

+ Addressing diversity of needs: Programs must be inclusive of all worker groups, such as caregivers and different generations. Flexible benefits and multilingual support ensure broad participation. “The best social labor is employment, as it changes lives and helps people to grow,” adds Hernández.

The long-term trajectory points toward wellness becoming a core pillar of H r strategy. Companies that embed holistic health practices are likely to see sustained gains in resilience and talent competitiveness. Projections suggest that organizations

prioritizing employee well-being will enjoy higher productivity and innovation, and substantially lower long-term healthcare costs. Leading indicators in Latin America show that emotional well-being initiatives can raise productivity and cut absenteeism. As younger generations enter the workforce, benefits aligned to lifestyle are expected to increasingly differentiate employers. research shows many Mexican workers now demand personalized wellness perks, and companies responding to these expectations report better retention.

Looking ahead, preventive health alliances and smarter insurance products will continue to grow. Digital health tools, AI-driven wellness coaching, and integrated platforms will become standard. The role of H r will further evolve: Hr leaders will need skills in data analytics, design thinking, and emotional intelligence to curate holistic health solutions.

By making holistic well-being a strategic constant, Mexican healthcare and corporate organizations can build a more resilient, innovative workforce ready for future challenges. “The higher the employee’s wellbeing, the higher the productivity. The higher the productivity, the more the company grows,” emphasized Bas, underscoring that investing in employee wellness is not just beneficial but essential for sustained business growth.

ECONOMIC IMPACT OF LATI NOS ABROAD

The Mexican diaspora represents a substantial and dynamic component of the global workforce, with implications for business strategy, labor markets, and economic growth. While over 11.2 million

“the need to take care of mental health has steadily increased since COVID-19. To help Mexicans living abroad, we developed an app that uses AI to support migrants,”

Tatiana Clouthier Head | Instituto de Mexicanas y Mexicanos en el Exterior

Mexicans reside outside of Mexico, with approximately 80% of them living in the United States, representing roughly 10.82 million, the Mexican population in the United States has contracted by 7% since 2019, reflecting demographic shifts and migration policy dynamics.

The Mexican government manages mobility and diaspora matters through three primary channels: the Institute of Migration, Consulates, and the Institute of Mexicans Abroad, providing oversight and support for migrant communities worldwide. Within the United States, Mexicans predominantly originate

from Guerrero, Michoacan, and Oaxaca, she adds, highlighting the regional origins that influence labor patterns, community networks, and economic contributions.

Mexican immigrants in the United States play a critical role in the labor market, especially in construction, manufacturing, accommodation, and food services, with construction remaining the largest employer. Despite some recent challenges, including declines in employment and wages in the food and hospitality sectors, Mexican workers continue to drive economic activity. Clouthier points out that Mexicans living in the United States make a significant contribution to the country’s GDP, underlining their economic relevance.

Fiscal and entrepreneurial contributions of the diaspora are also notable. Latinoowned businesses in the United States have expanded substantially in recent years, and undocumented immigrants contribute billions in taxes through ITIN filings. These

contributions, coupled with participation in key industries, position the Mexican diaspora as a critical economic driver in multiple regions.

Education and skill development are increasingly prominent within the diaspora. Tatiana Clouthier, Head, Institute of Mexicans Abroad, observes that Latinos in the United States increasingly obtain university degrees and occupy advanced positions, positioning them to participate in knowledge-intensive industries and support innovation-driven growth. This trend enables businesses to access a more skilled and diverse workforce capable of contributing to higher-value sectors.

In parallel, attention to mental health has become a critical concern for Mexicans abroad. According to Clouthier, “the need to take care of mental health has steadily increased since COVID-19. To help Mexicans living abroad, we developed an app that uses AI to support migrants,” she added at Mexico Business Summit 2025. These initiatives illustrate innovative approaches to community well-being and workforce resilience, which can indirectly enhance productivity and engagement for businesses leveraging diaspora talent.

In summary, the Mexican diaspora plays a pivotal role in shaping labor markets, entrepreneurship, and economic growth across multiple regions. For companies operating in North America and beyond, understanding these dynamics provides a foundation for strategic workforce planning, talent development, and inclusive business strategies that leverage the economic potential of Latinos abroad.

NORTH AMERICAN SUPPLY CHAINS ARE MASTERING CROSS-BORDER LOGISTICS

Despite ongoing uncertainty in North American trade relations, Mexico has consolidated its role as the United States’ top trading partner, underscoring the growing interdependence of cross-border supply chains amid tariff tensions and impending

USMCA renegotiations. Yet, this leadership also comes with significant logistical challenges, including persistent congestion at key border crossings, uneven infrastructure capacity, and regulatory gaps that strain efficiency and resilience across the region.

Cross-Border Trade Under Pressure

Mexico’s exports to the United States rose 6.5% year-over-year in the first seven months of 2025, reaching US$309.7 billion, according to the US Census Bureau. Automobiles, freight vehicles, auto parts, computers, wiring harnesses, and medical devices continued to drive growth, reinforcing Mexico’s position in high-value manufacturing and logistics integration, MBN reports.

In contrast, Canada’s exports to the United States fell 4.4%, and China’s plunged 18.9%, reflecting a structural reorientation of US trade toward nearshoring partners. In July alone, Mexico shipped US$45.37 billion worth of goods northward, an 8.2% annual increase that helped offset fluctuations earlier in the year. US exports to Mexico also climbed modestly by 1% to US$28.99 billion, highlighting the deep, two-way nature of supply chain interdependence.

“We need to make greater progress in technology, customs processes, and addressing the bottlenecks we have faced throughout the transportation process. In our sector, the key priority is improving the flow of goods across all customs points. While modernization has begun, we still need to move further toward a more advanced and efficient future”

million loaded truck containers crossed the US-Mexico border between January and August 2025. Laredo, Texas, handled nearly half, 2.95 million containers, confirming its status as North America’s busiest land port. Otay Mesa (815,510) and Hidalgo (606,668) followed as critical gateways linking California and Texas with Mexico’s manufacturing heartlands.

“It is essential to have contingency plans. When bottlenecks arise at border crossings, we need reliable alternatives to keep cargo moving. Infrastructure is crucial, but the solution goes beyond building more bridges, it is about creating resilient, trustworthy logistics systems that can address challenges such as security and efficiency. Several industry programs already help ease congestion and streamline cross-border operations. Initiatives like CTPAT in the United States, its Canadian counterpart PIP, and Mexico’s Authorized Economic Operator (OEA) program enable companies to use fast lanes and expedite crossings, significantly reducing waiting times,” shares Alfonso Ortiz, Crossborder Director, rhenus Logistics.

Ultimately, mitigating risk requires collaboration with trusted logistics partners certified under programs like CTPAT, ensuring safer, faster, and more reliable trade flows across North America.

Rómulo Mejía Delegate of

Nuevo Leon | CANACAR

Mexico now accounts for 15.3% of total US trade, 13% ahead of Canada and nearly 8% above China, though bilateral deficits remain substantial. The US trade deficit with Mexico widened 17.7% to US$112.6 billion through July, driven largely by automotive and electronics imports.

Bottlenecks at the Border

Even as trade volumes grow, the physical limits of border infrastructure remain one of the greatest threats to supply chain fluidity. Data from the US Department of Transportation (DOT) reveals that over 6.3

Yet August data pointed to temporary slowdowns: Laredo’s truck volumes fell slightly from 429,410 in July to 421,810 in August, and Otay Mesa from 124,785 to 121,692. These month-on-month dips underscore the fragile balance between capacity and demand, where even minor disruptions, weather, inspections, or policy shifts, can ripple through regional supply chains.

Meanwhile, data from Mexico’s National Customs Agency (ANAM) shows a 2.4% drop in road exports to the United States during the same period, with total customs operations down 4.2% year-over-year. Six border customs, Nuevo Laredo, Tijuana, Ciudad Juarez, r eynosa, Nogales, and

Colombia, handled 80.5% of all transactions, underscoring both their dominance and their vulnerability to congestion.

“We need to make greater progress in technology, customs processes, and addressing the bottlenecks we have faced throughout the transportation process. In our sector, the key priority is improving the flow of goods across all customs points. While modernization has begun, we still need to move further toward a more advanced and efficient future,” says rómulo Mejía, Delegate of Nuevo Leon, CANACAr

Infrastructure Expansion and Modernization

“Of the 50 bridges connecting Mexico and the US, only 20 to 22 handle cargo, and just one, the World Trade Bridge in Nuevo Laredo, moves half of all cross-border trade. Globally, it ranks as the seventh-largest port, even surpassing Long Beach. Yet, trade flow depends on much more than building bridges. It involves a complex ecosystem centered on risk management, security, insurance, data integration, and coordination between two different regulatory systems. Despite growing trade volumes, no new bridge has been built in 30 years, and crossborder infrastructure remains outdated. Projects like Otay are steps forward, but full integration, such as aligning Mexico’s Carta Porte with the US Bill of Lading, is still pending,” states Alonso Pedrero, CFO, Puerto Verde Global Trade Bridge.

r ecognizing these pressures, both governments have accelerated cross-border infrastructure projects. In Tamaulipas, the World Trade Bridge Expansion Project is adding eight new toll booths and eight additional northbound lanes, along with multi-energy inspection portals designed to streamline customs clearance. A new bridge, Laredo 4/5, is also in development, planned to handle pedestrian, vehicular, and commercial traffic in a single multimodal facility that will relieve congestion at existing crossings. Together, these investments target congestion at Nuevo Laredo, a corridor that processed over US$339 billion in trade in 2024 alone.

Further west, the Otay Mesa East Port of Entry and Douglas Land Port of Entry are part of the United States’ border modernization program, funded by federal and state partnerships to boost security and efficiency. In Texas, new works at the Kika de la Garza Land Port of Entry in Pharr and the Anzalduas International Bridge expansion aim to strengthen regional connectivity and accommodate growing truck traffic from central Mexico.

Nuevo Leon, meanwhile, is pioneering a next-generation logistics model through its Green Corridors Initiative, a binational project developed with Laredo, Texas. Backed by a US$17 billion investment, the plan envisions Intelligent Freight Transportation Systems (IFTS), automated terminals, elevated freight guideways, and autonomous shuttles, designed to reduce crossing times at the Colombia Bridge from 45 to under 10 minutes.

In Coahuila, Puerto Verde Global Trade Bridge (PVGTB), a bi-national developer based in the United States, is initiating an infrastructure project to fortify supply chains and enhance trade efficiency along the US-Mexico border through its Puerto Verde Coalition. This endeavor brings together public and private stakeholders to establish a resilient, secure, and sustainable commercial trade corridor connecting Eagle Pass, Texas, and Piedras Negras, Coahuila.

Toward Harmonized Standards and Shared Data Systems

As trade integration deepens, aligning data, inspection, and compliance systems between Mexico and the United States remains essential. Duplicated inspections, manual documentation, and fragmented databases contribute to delays and congestion. Both countries are exploring interoperable platforms for real-time cargo visibility, digital pre-clearance, and mutual recognition of trusted-trader programs.

“Digitalization and interoperability among customs systems are essential, particularly for sharing information efficiently. These elements are already part of the USMCA, yet implementation has fallen short of expectations. With the upcoming USMCA review next year, it will be crucial to stay alert and proactive in addressing these issues to ensure the agreement fulfills its potential in facilitating trade and border efficiency. While Mexico’s export momentum underscores its competitiveness, persistent chokepoints at land ports remain a strategic vulnerability. Addressing them will require coordinated action from governments, investors, and logistics operators alike,” shares Alfonso Ortiz, Crossborder Director, rhenus Logistics.

Experts emphasize that technological synchronization, rather than additional infrastructure alone, will determine future efficiency. Harmonizing customs risk models, digitizing certificates of origin, and integrating blockchain-backed tracking systems could significantly reduce bottlenecks while reinforcing supply chain security.

“At AmCham, we closely monitored the entire process of the new Customs Law, conducting a technical analysis through our committees and submitting detailed proposals to legislators. Our goal was to ensure the reform goes beyond words on paper and truly delivers on the promise of digitalizing customs procedures to achieve real efficiency. We seek safer, more transparent, and more agile customs processes that enhance trade facilitation and competitiveness. This reform represents a significant step toward transforming cross-border operations; however, further actions are still needed to achieve full modernization of Mexico’s customs system,” says Grace Lingow, Director General, AmCham MexicoMonterrey Chapter.

Building Strategic resilience

Ultimately, resilience in North American supply chains depends on balancing infrastructure investment with operational innovation, writes Augusto ramos, Vice President, Grupo rAME. Physical expansions, bridges, inspection lanes, logistics parks, must be matched by digital and regulatory modernization. This includes strengthening multimodal connectivity between ports, rail, and highways; investing in secure, well-equipped rest stops and driver support infrastructure; streamlining customs processes through automation and data sharing, and incentivizing private-sector investment in logistics corridors.

HOW TO BUILD A HIGH-VALUE COMPANY WITHOUT INVEST OR CAPITAL

The traditional image of entrepreneurship often involves seeking investors, launching an app, or utilizing AI. Yet, more than 95% of these projects do not succeed and entrepreneurs and investors are left frustrated

and with a lot of debt. This is not the only path to success, however.

“A company does not need investors, if instead it focuses on organic, sustainable

growth,” said Javier García, CEO, IOS Offices, at Mexico Business Summit 2025.

García’s strategy for successful entrepreneurship stands on four interconnected pillars that can transform a business into an “initiative factory.”

1. Organizational Culture: Empowering Action Through Trust

“How can we shift the culture from fear to empowered, so people can act when they need to without being hindered by fear of getting fired or getting in trouble?” asked García. An organizational environment built on fear, where the survival mechanism takes control, hinders growth and initiative.

Approximately 70% of employees do not feel committed to the company they work in, shared García. Discontent is often caused by factors like salary, job security, working conditions, and policies. However, satisfaction is generated by intrinsic factors, such as contribution and recognition, responsibility and taking on challenges, and personal development and a sense of belonging. “We need to foster initiative, creativity and execution, so that people within a company can improve their dayto-day activities and, in the long-term, the company itself,” he said.

2. Heed the Money: Value Over Income

If an organization focuses its resources on what it obtains in return, rather than what

it spends, income will follow naturally. This is evident in the approach to operational spending; the most effective budget is one focused entirely on measurable returns. Creating value first is the engine that drives natural, sustained financial results. “The underlying truth is that money is the echo of value,” said García. “If you do not hear it, you are listening in the wrong direction.”

“When we stop chasing money for money’s sake and focus on generating real value, earnings become a natural consequence,” he shared.

3. Quality: resolve Once, Apply Always

When things are done with a focus on quality, everything is done well. “If you are going to do something, do it well the first time,” García noted. “And when something goes wrong, fix it once: change the process, change the order of things, or the resources, and then replicate it.” In the long run, doing this is cheaper as you retain clients, you make fewer mistakes, and make things a lot easier,, states García.

Instead of rushing to market, he recommends to “be the best, not the first.” This focus on initial quality drives efficiencies and generates the momentum often described as the Flywheel Effect. High-quality, repeatable solutions reduce friction and accelerate organic scaling.

4. reputation: Defined by Problem resolution

In business, problems are inevitable. It is how an organization resolves those problems that defines its reputation. “Today, reputation is one of the most important things for a company to monitor due to social media and reviews,” said García. “With a single bad client experience, your reputation is hit.”

A commitment to solving inevitable problems expertly transforms a negative experience into a powerful reputation builder. “If we deal with the issue head on, we can keep a happier client than before, one that can become a brand ambassador,” said García.

GLOBALIZATION, REGIONALIZATION, NEARSHORING & TARIFFS

Since early 2025, a wave of US tariffs has disrupted key trade sectors in Mexico, from steel and aluminum to automotive products and industrial imports. These measures have shaken export markets and increased uncertainty for investors. While USMCA exemptions have provided limited relief, Mexico continues to negotiate with Washington to protect its industries and jobs.

Martín Toscano, President, CAMEXA, shared a balanced view of Mexico’s current landscape and the upcoming USMCA review. “Depending on the industry or sector, the situation varies,” Toscano said. “But overall, our most recent survey among member companies shows slightly better results than the previous one regarding Mexico’s economic outlook, which is an encouraging sign.” He described the business sentiment as one of measured realism: “It is not euphoric, but it is far from apocalyptic either.”

US Tariffs Shake Mexican Exports

In February, just days after his inauguration, President Donald Trump imposed 25% tariffs on imports from Mexico and Canada, citing both countries’ alleged failure to address illegal migration and fentanyl trafficking. While an exemption was later granted for products meeting USMCA rules of origin, the 25% tariff still applies to goods without certification. Mexico viewed this as a sign of constructive engagement, while Canada responded with a firmer stance, signaling possible retaliatory measures.

On March 12, a 25% tariff was applied to all steel and aluminum imports, which rose to 50% on June 4. Mexico reported a 60% drop in steel exports to the United States in April, prompting urgent appeals from the government. Minister of Economy Marcelo Ebrard and other officials are leading efforts to secure exemptions, while President Claudia Sheinbaum emphasized defending jobs, supporting industry, and pursuing fair trade conditions.

In April, Trump announced the so-called “Liberation Day” tariffs, introducing a baseline 10% levy on imports from most countries, later targeting 60 nations with higher tariffs, subject to a 90-day deferral for all but China. As USMCA members, Mexico and Canada were exempt from these additional tariffs.

Automotive imports also faced pressure. On April 2, a 25% tariff on foreignmanufactured vehicles was imposed, later expanded to engines and components. Mexico negotiated a reduction to approximately 15% for vehicles assembled in Mexico using domestic content. Despite relief, rising costs remain a challenge, with Ford projecting US$1.5 billion in reduced earnings due to tariffs.

In July 2025, the United States proposed a 30% tariff on other Mexican imports, temporarily suspended for 90 days while Mexico addresses non-tariff barriers. These include regulatory delays in pharmaceuticals and medical devices, bans on pesticides and glyphosate, and restrictions in energy, lithium, agriculture, and transport sectors. The measure also addresses monopolistic practices in telecommunications, limitations on genetically modified crops, and enforcement gaps against piracy and smuggling. Unlike existing tariffs of 25% on automobiles, 50% on steel, aluminum, and copper, and a 17.09% duty on tomatoes, the new 30% tariff is conditional and targeted, designed to incentivize reform rather than act as a blanket levy.

Most recently, the United States announced a new tariff structure for medium- and heavyduty vehicles (MHDVs) and key components, effective Nov. 1, 2025. Under USMCA rules, a 25% tariff applies only to non-US content of qualifying vehicles, while trucks or parts failing to meet origin requirements face the full 25%. Buses will carry a flat 10% tariff, and critical components such as engines, transmissions, tires, and chassis are also included. US manufacturers assembling

vehicles domestically may claim a 3.75% tax credit on light, medium, and heavyduty vehicles, extended through 2030. Between January and July 2025, the US imported US$32.41 billion in trucks, buses, and specialty vehicles, with Mexico as the top exporter at US$25.86 billion, a 13.8% decline year-on-year.

In Business, Money Always Wins

For Jorge Sánchez, International Trade and Customs Partner, KPMG Mexico, economics will ultimately outweigh politics. “In business, money always wins,” Sánchez said. “No matter the political narrative, economic interests lead the way. The proximity between Mexico and the United States, and the strength of Mexico’s internal market, make it very hard to unwind that relationship.”

He added that companies must now operate under two mindsets, pursuing growth and efficiency while also protecting against regulatory and geopolitical risks. “Foreign trade is no longer just transactional, it is strategic,” he said.

Mexico’s response and Nearshoring Opportunities

Despite these headwinds, Mexico remains a top global investment destination, ranking 11th worldwide in 2024 with US$37 billion in foreign direct investment (FDI), up from US$36 billion in 2023. While foreign investment in the industrial sector fell 17.5% in

1Q25, companies like Ford and Seojin Mobility continue to expand operations.

Minister of Economy Marcelo Ebrard confirmed that talks with the United States over the 30% tariff proposal are 90% complete, with expectations of a stable bilateral agenda ahead of the 2026 USMCA review. He reaffirmed that the treaty will remain trilateral, despite occasional political speculation about bilateral alternatives.

Ebrard also noted ongoing negotiations over steel and aluminum tariffs, as well as 1,776 active projects worth US$297 billion in Mexico’s investment pipeline. “No project has been canceled; on the contrary, we keep adding new ones,” he said, adding that Nvidia’s CEO will visit Mexico in November for the launch of the country’s “Mexican Artificial Intelligence Language” initiative.

resilient Outlook

Francisco González Díaz, Director of Economic Analysis for Mexico, Banorte, acknowledged that nearshoring in Mexico remains active, though at a slower pace than during the post-pandemic surge. “Nearshoring is still happening, but the pace has definitely slowed,” he said. “The Trump factor, without a doubt, has put the brakes on several investments.”

González pointed to Plan México, presented in April, as a clear indication that the government aims to strengthen North American supply chains and reduce dependence on China. The

reform to the General Import Tariff Law, which introduced 1,463 new tariff categories, “sends a strong signal: China is no longer seen as an alternative or an ally. The United States will remain Mexico’s main trade partner,” he said.

Despite the uncertainty, business leaders agree that Mexico’s economic fundamentals remain robust. Trade between the United States and Mexico now exceeds US$2 billion per day, underscoring North America’s unmatched economic integration.

“restructuring it would require infrastructure, investment, talent, and raw materials; an entire ecosystem that cannot be easily replaced,” said Martín Toscano, President, CAMEXA. As Mexico navigates tariff pressures and shifting global dynamics, its resilience, strategic location, and industrial strength continue to position it as a cornerstone of the region’s competitiveness.

“There is no other region as economically relevant as North America,” he concluded.

RELIABLE POWER FOR INDUST RIAL PARKS

At Mexico Business Summit 2025 in Monterrey, Bergen Engines and Sampol presented their joint approach to delivering reliable and efficient energy for industrial parks, emphasizing modular generation, medium-speed engines, and turnkey project integration. The session, titled reliable Power for Industrial Parks, showcased how both companies combine engineering expertise and proven technology to address power reliability challenges in Mexico’s industrial and commercial sectors.

“Mexico has tremendous room for growth, and there is no doubt it will achieve it through external and internal investment”

Facundo Gatica Proposal Manager Latam | Sampol

Flex (15MW), FEMSA ( MW), Granjas Carroll (9MW), and two power plants in Sonora (29MW combined). Other installations across Latin America include facilities in Guatemala (CEC, 45MW), Honduras ( r ECO, 25MW), Colombia (Tecnoglass and Grupo Oben), Peru (P r OMIGAS and Grupo Oben), and Puerto rico (Johnson & Johnson, 13.2 MW).

Bergen’s technology portfolio includes the B35:40 and B36:45 engine series, designed for natural gas operation at 720rpm. These medium-speed engines offer high efficiency, low operating costs, reduced emissions, and reliable performance under variable loads. Their modular and scalable design allows them to adapt to diverse industrial needs, while their compact footprint supports distributed or on-site generation strategies.

Founded in 1855 and headquartered in Bergen, Norway, Bergen Engines specializes in medium-speed power generation systems ranging from 3 to 12MW per unit, which can be configured in modular plants of up to 100MW. The company, owned by Langley Holdings, has more than 5,000 engines in operation worldwide and maintains an installed Base of 300MW across Latin America. In the region, Bergen operates 15 plants with 28 engines, totaling 210MW of capacity.

In Mexico, Bergen’s presence spans 76MW of installed capacity, including projects with major industrial players such as Orbia (18MW),

Addressing Mexico’s energy landscape, Aldrich richter, Managing Director Latam, Bergen Engines, noted that regional competitiveness is becoming increasingly complex as Mexico contends with surging demand north of the border. “We are competing against enormous energy demand in the United States, largely driven by data centers,” he said. “In Texas alone, 7GW of additional gas-fired capacity is under construction in the short term to supply data centers, and by 2030, estimates point to another 20 to 30 GW. That is an enormous amount of energy consumption, and that’s what we are competing against, gas availability, regulatory speed and accessibility, decision-making agility, and the availability of

generation equipment. This should serve as a reminder for Mexico to act now and start making decisions quickly.”

Complementing Bergen’s generation expertise, Sampol brings nearly 90 years of experience in engineering, energy, and sustainability projects. The company employs more than 1,500 professionals, including over 300 engineers, and operates in 15 countries. Sampol’s portfolio includes over 4,000 completed projects and more than 1,000MW of installed power capacity, with a focus on energy, industrial, transport, and hotel sectors. Around 40% of its revenue is generated internationally.

Facundo Gatica, Proposal Manager Latam, Sampol, emphasized that Mexico’s power market holds significant growth potential

supported by both domestic and foreign capital. “Mexico has tremendous room for growth, and there is no doubt it will achieve it through external and internal investment,” he said. “There must be constant communication between companies and suppliers to deliver exactly what businesses require in their decision-making process and to assist them throughout that process.”

During the presentation, both companies emphasized their collaborative consortium model, which integrates Bergen’s motorgenerators with Sampol’s engineering, procurement, and construction (EPC) capabilities. This partnership allows for the development of turnkey power plants, covering the full project lifecycle, from equipment supply and plant balance to construction and intelligent operations and maintenance (O&M). The joint approach aims to ensure technical clarity, cost transparency, and streamlined execution for industrial clients.

Bergen and Sampol also highlighted their capacity to design hybrid microgrids, combining medium-speed engines with renewable sources to deliver stable, dispatchable, and lower-emission power. These systems are particularly suited for industrial parks and private energy users seeking independence from grid fluctuations while maintaining high operational reliability.

OPTIMIZING PROJECT DEVELOPMENT FOR MEXICO’S ENERGY INFR ASTRUCTURE

Mexico’s quest to attract foreign investment over the past couple of years has been pressured by the country’s ability to supply enough power to incoming investors. Grid saturation and blackouts have undermined the expansion of renewable energy and remain a major concern for companies seeking to relocate or expand operations into the country.

Industrial electrification is a key component of Mexico’s strategy to reduce carbon emissions and enhance competitiveness. To ensure that electrification supports both decarbonization

targets and industrial growth, it is crucial to develop policies that incentivize the adoption of energy-efficient technologies, promote the use of renewable energy sources, and provide support for industries transitioning to electric-based processes. This may involve offering tax credits, subsidies, or low-interest loans to companies investing in green technologies and infrastructure.

Fernando Tovar, CEO of Mitsui & Co., emphasized that Mexico must think about energy and infrastructure as part of a broader,

interconnected system. “One of the things we would like to propose is that when we talk about infrastructure, we should not separate energy, water, and digital connectivity as isolated issues. A modern economy needs all of them, they are complementary and necessary for the success of an integrated system,” he said. His view reflects an emerging consensus that next-generation energy planning cannot occur in silos but must coordinate across industrial, digital, and resource infrastructure.

Optimizing project development for Mexico’s next-generation energy infrastructure requires a multifaceted approach that includes providing regulatory certainty, attracting long-term capital, integrating advanced technologies, addressing technical priorities, and supporting industrial electrification. By focusing on these areas, Mexico can build a resilient, sustainable, and competitive energy system that meets the needs of its growing economy and contributes to global environmental goals.

“Every project, regardless of its sector, must be viewed from multiple perspectives: technical, financial, legal, risk, and business benefit. Ultimately, projects exist to generate value, and they must be designed holistically from the start. Too often, one of these perspectives is missing in the early stages, which later triggers issues in subsequent phases”

Alejandro

Villareal General Director | Esvicon

Alejandro Villarreal, General Director at Esvicon, noted that ensuring project success requires early and integrated thinking across all dimensions. “Every project, regardless of its sector, must be viewed from multiple perspectives: technical, financial, legal, risk, and business benefit. Ultimately, projects exist to generate value, and they must be designed holistically from the start. Too often, one of these perspectives is missing in the early stages, which later triggers issues in subsequent phases,” he explained.

To attract long-term capital for hybrid or storage-integrated projects, Mexico must provide a stable regulatory environment that assures investors of the viability and profitability of such ventures. This includes clear policies on power purchase agreements (PPAs), feed-in tariffs, and incentives for renewable energy projects. The issuance of green bonds and other sustainable financial instruments can also play a crucial role in mobilizing funds for these projects.

Villarreal added that better coordination among technical, financial, and legal advisors is also vital for public-sector initiatives. “When projects are structured or assessed, especially on the public side, we often see different consultancies working in isolation. Instead of moving together in the same direction toward the project’s overall benefit and bankability, each focuses on its own angle. That lack of alignment can undermine the entire structure,” he said.

In this context, CFE’s 2025-2030 expansion plan outlines an ambitious investment strategy, allocating US$31.5 billion to bolster generation, transmission, and distribution capacities. This initiative aims to address the growing demand for electricity, particularly in industrial corridors, and to support the country’s decarbonization objectives, albeit under a new model for private-public participation where the state holds preference.

With CFE’s expansion plan in progress, several technical and planning priorities must be addressed to optimize new generation and transmission capacity. These include enhancing grid connectivity to accommodate the influx of renewable energy sources, upgrading transmission lines to reduce losses and improve efficiency, and expanding substations to meet the increasing demand in urban and industrial areas. Additionally, integrating energy storage solutions can help balance supply and demand, mitigate intermittency issues associated with renewable energy, and improve grid stability.

From a project design perspective, modularity and standardization can reduce risk and cost. Santiago ramos, Executive Director at SMBC SOFOM, explained that modular systems and global standardization can yield significant advantages. “We’ve seen that standardization enables optimization. If manufacturers and investors focus r &D on fewer, modular equipment types, it creates economies of scale and efficiency. Modular construction, building blocks of 20 MW or more in parallel, also reduces risk and shortens project timelines. If one block faces delays, others can enter partial commercial operation, minimizing exposure and generating earlier returns,” he said.

ramos also highlighted the role of remote monitoring in maintaining reliability. “remote energy monitoring helps maximize asset lifespans, extend online availability, and minimize preventive or corrective downtime. Centralized global procurement can also deliver fiscal efficiencies that lower total project cost,” he added.

Integrating advanced technologies like predictive maintenance, digital twins, and smart-grid systems is essential for

optimizing the performance and reliability of Mexico’s energy infrastructure. Predictive maintenance utilizes data analytics and machine learning to anticipate equipment failures before they occur, reducing downtime and maintenance costs. Digital twins create virtual models of physical assets, allowing for real-time monitoring and simulation of various scenarios to enhance decision-making processes. Smart-grid technologies enable two-way communication between utilities and consumers, facilitating demand response, integration of distributed energy resources, and improved grid management.

Implementing these technologies can lead to more efficient energy use, lower operational costs, and a more resilient energy system, especially when coupled with early-stage alignment between stakeholders, crosssector planning, and modular construction approaches that mitigate project risk. In the end, Mexico’s energy future depends not only on building more infrastructure, but on building it smarter, faster, and in full coordination with the industries that depend on it.

HYBRID ENERGY: TRANSFORMING PROJECTS FOR A SUSTAINA BLE FUTURE

At the Mexico Business Summit 2025 in Monterrey, Aggreko presented its strategy for helping industries transition toward cleaner and more flexible power generation. The

“With this shift in technologies, mining companies position themselves as leaders in environmental responsibility and compliance with international regulations. In Mexico, the mining sector represents around 6% of industrial CO2 emissions, so adopting cleaner technologies directly supports sustainability targets. Moreover, lower operating costs and improved energy reliability are now key factors for competitiveness.”

session, titled Hybrid Energy: Transforming Projects for a Sustainable Future, was led by Nicté Ovando, Business Developer, Aggreko, and focused on how hybrid systems, battery storage, and adaptable fuel solutions can reduce emissions and improve reliability for large-scale operations.

Nicté Ovando Business Developer |

Aggreko

Aggreko, a global leader in mobile and modular energy solutions, operates in 75 countries through 238 locations, serving around 13,000 clients worldwide. In 2024, the company reported US$2.9 billion in revenue and an EBITDA of US$1.1 billion, supported by a global workforce of more than 6,900 employees and an inventory of 85,000 active assets. This extensive network enables Aggreko to provide rapid-deployment power systems that

can evolve as customer needs and energy markets change.

The presentation outlined Aggreko’s fuel transition roadmap, which guides clients through a gradual evolution from traditional fuels to cleaner alternatives. The process begins with diesel or heavy fuel oil (HFO) for short-term or fast-deployment projects, then shifts to dual-fuel solutions, such as the company’s ADDGAS system, which mixes diesel and natural gas when gas supply is intermittent. As infrastructure improves, Aggreko facilitates transitions to liquefied petroleum gas (LPG) via virtual pipelines, followed by natural gas (LNG or CNG), and ultimately green hydrogen for renewablebased operations. The company also envisions dual green-fuel systems combining natural gas and hydrogen.

Ovando emphasized that these transitions are not only about efficiency, but also about advancing Mexico’s environmental and competitiveness goals. “It is important to highlight both the environmental impact and the competitive advantages,” she said. Switching to gas not only reduces costs and carbon footprint, but also decreases noise and improves air quality. “With this shift in technologies, mining companies position themselves as leaders in environmental responsibility and compliance with international regulations. In Mexico, the

mining sector represents around 6% of industrial CO2 emissions, so adopting cleaner technologies directly supports sustainability targets. Moreover, lower operating costs and improved energy reliability are now key factors for competitiveness.”

Aggreko’s approach demonstrates how hybrid and transitional energy systems can support decarbonization without depending exclusively on solar or wind resources. Hybrid configurations integrate storage, efficient thermal generation, and digital management systems to deliver immediate emissions reductions while maintaining reliability in off-grid or remote environments.

The company’s hybrid offering includes battery energy storage systems (BESS) that serve as spinning reserve, replacing standby generators and reducing engine wear. Its energy management software optimizes generation sources, minimizes unnecessary fuel consumption, and improves system planning. Together, these tools enhance efficiency and stability while lowering operating costs.

One of the most notable examples shared in the presentation was Aggreko’s implementation of Mexico’s first virtual gas pipeline for the mining sector. The project was designed to ensure energy continuity at a remote site with an unstable grid and no immediate access to traditional infrastructure. By deploying a flexible, gasbased power solution, Aggreko enabled the mine to maintain continuous operations, improve process performance, and reduce its energy cost (COE) by 33%, while significantly lowering emissions.

Through such initiatives, Aggreko is demonstrating how hybrid and transitional energy models can bridge the gap between conventional and renewable power. Its technology portfolio, spanning generation, storage, and fuel management, allows industrial clients to adopt cleaner energy progressively, without compromising operational continuity.

EXPANDING GAS AVAILABILITY FOR REGIONAL INDUSTR IAL GROWTH

Mexico’s industrial expansion is increasingly tied to the availability and reliability of natural gas. As manufacturing hubs grow, energy planners face the dual challenge of meeting surging demand while supporting a strategic energy transition. Natural gas is positioned as a cornerstone fuel in Plan México, serving both as a bridge toward decarbonization and as a driver of industrial competitiveness. The country’s extensive pipeline network, combined with emerging interconnection projects, aims to expand access to regions that historically faced supply constraints, including the south, southeast, west, and central states. For industrial consumers, ensuring energy availability is not only a matter of operational continuity but also of cost efficiency and long-term planning.

r eliance on natural gas spans physical pipelines and flexible virtual pipeline solutions. While physical pipelines provide a stable and continuous supply, virtual pipelines offer mobility and adaptability, compressing gas at transfer centers for truck-based delivery to areas without direct infrastructure. During the “Expanding Gas Availability for regional Industrial Growth” panel at Mexico Business Summit 2025, Juan Paulo Cervantes, Commercial Director, SOLENSA, emphasized that these models are not rivals but complementary. “Pipeline gas and virtual pipeline solutions like LNG or CNG do not compete, they complement each other,” he said. “Industries are growing faster than infrastructure investment in many

regions. LNG allows gas to reach remote zones quickly and with low startup cost, while pipelines remain more cost-effective once the demand is justified.”

Each approach carries trade-offs: pipelines demand high upfront investment and longer timelines but offer predictable pricing and capacity, whereas virtual solutions allow faster deployment but depend on robust logistics, regulatory compliance, and safety standards. Industrial users weigh these factors when planning their energy procurement, balancing reliability, cost, and scalability against market volatility and infrastructure gaps.

Pipeline expansion remains a critical lever for regional development. Key opportunities exist in the south and southeast, where demand is growing rapidly and supply remains constrained. Projects such as the Puerta al Sureste pipeline and the Mayakan system expansion aim to strengthen delivery to the Yucatán Peninsula and surrounding areas. Sergio Charles, Energy Director at Protexa, noted that the complementarity between pipeline and virtual supply is also strategic. “Pipelines drive regional development by bringing clean, low-cost energy and helping communities grow,” he said. “Virtual pipelines, meanwhile, are driven by business decisions, fast, flexible, and controlled directly by industry. One responds to state development strategy, the other enables immediate competitiveness.”

However, these initiatives face hurdles including land access, regulatory approvals, financing, and construction timelines. Beyond expanding the network, strategic investments in gas storage are essential. Current reserves cover just two to three days of consumption if US supply is disrupted, highlighting Mexico’s vulnerability to external shocks, such as the February 2021 winter storms that forced rolling blackouts across 26 states.

Domestic production offers another pathway to secure the energy supply. Mexico holds

significant unconventional reserves, including shale resources capable of reshaping the country’s energy outlook. Unlocking these reserves requires overcoming technical, environmental, and regulatory barriers, while ensuring sustainable extraction practices. Strengthening domestic production could gradually reduce reliance on US imports, improving energy sovereignty and providing a stable base for industrial growth.

“Industries are growing faster than infrastructure investment in many regions. LNG allows gas to reach remote zones quickly and with low startup cost, while pipelines remain more cost-effective once the demand is justified.”

Juan Paulo Cervantes

Commercial Director | SOLENSA

logistical barriers make pipeline connection unfeasible.”

LNG terminals, storage hubs, and other innovative distribution methods are increasingly critical to bridging regional gaps. Carlos Boone de Nova, Director of Corporate Affairs at Enestas, described the role of LNG as a solution designed for areas beyond pipeline reach. “We bring natural gas to regions where pipelines do not exist,” he said. “LNG is more expensive than pipeline gas, but there is no gas more expensive than the one you do not have. We are a bridge solution while pipelines arrive, but also a permanent answer where geographic, economic, or

Small and medium-scale LNG facilities, compression and decompression plants, and interconnection branches support the deployment of virtual pipelines, enabling flexible last-mile delivery. These solutions not only increase regional coverage but also create resilience against seasonal or logistical disruptions. Combined with continued investment in physical infrastructure, they represent an integrated approach to expanding natural gas availability while supporting Mexico’s industrial and economic ambitions. “Transporting gas by pipeline is inherently tied to long-term planning, substantial investment, and regulatory coordination,” noted Napoleon Cantú, General Director of TUBACErO. “Virtual pipelines, meanwhile, get to market faster. For Mexico’s long-term needs, both must move in parallel, one enabling immediate access, the other defining structural growth.”

As industrial demand continues to rise under nearshoring and export-driven growth, balancing pipeline expansion, virtual delivery, and storage solutions will define Mexico’s ability to sustain manufacturing competitiveness. Strategic planning, publicprivate collaboration, and timely investment remain essential to ensure that the country can leverage its natural gas resources efficiently while laying the groundwork for a cleaner, more resilient energy system.

DRIVING DECARBONIZATION VALUE CREATION THROUGH ENERGY EFFICIENCY

Mexico’s pursuit of industrial competitiveness is now inseparable from its decarbonization strategy. Over the past five years, following the pandemic and as global supply chains recalibrated toward nearshoring, Mexican manufacturers and energy-intensive sectors have faced a new imperative: to grow production while sharply reducing emissions and energy waste. The shift has pushed corporate leaders to integrate electricity procurement, renewable generation, and energy efficiency programs into core

business planning rather than treating them as separate compliance exercises.

According to José González, Vice President of AMENEEr , even if global sustainability messaging appears to have quieted down, Mexico’s private sector continues to see decarbonization as a critical driver for competitiveness. “Although sustainability has globally entered a bit of a recession, we must keep working,” he said. “For Mexico, an export-oriented country, decarbonization is

not just about selling more, it is about staying in business. Even if national regulation has not been as strong, market trends are pushing companies to decarbonize.”

In Mexico’s industrial sector, the adoption of energy efficiency technologies and digital tools is gaining momentum. Energy management systems (EMS), artificial intelligence (AI), and the Internet of Things (IoT) are being employed for real-time monitoring and performance optimization. For instance, METrON’s Energy Management and Optimization System (EMOS) is utilized across various industries, including pulp and paper, glass, iron and steel, food and beverage, and electronics, to enhance energy efficiency and reduce carbon impact.

Francisco Villarreal, Founder of Kinenergy, highlighted the growing importance of integrating monitoring, measurement, and verification tools from the early design stages of projects. “It’s essential to start adopting digital twins and BIM models to track energy performance from the beginning,” he said. “That allows companies to establish baselines and compare real-world behavior against expectations without waiting a year for data. These digital tools also help evaluate energy availability and infrastructure early on, reducing uncertainty and improving project efficiency.”

These technologies enable businesses to identify inefficiencies, predict maintenance needs, and optimize energy consumption without compromising production levels. The return on investment (rOI) from these solutions is often realized through cost savings, improved operational reliability, and alignment with decarbonization and ESG disclosure strategies.

Andrés Friedman, Co-Founder and CEO of Solfium, noted that despite political backand-forths around sustainability on the global stage, Mexico’s corporate leaders continue advancing their renewable and efficiency goals, though with less fanfare. “We’re seeing two realities,” he said. “Globally, sustainability discourse may have retreated, but in Mexico, many leading companies, in

banking, consumer goods, and automotive sectors, are still pushing forward. They’ve moved from greenwashing to ‘green hushing,’ but the strategies continue. They do so because it’s the right long-term decision for their stakeholders and because it’s profitable. Solar energy is now the cheapest energy source in Mexico and globally, and investing in renewables and efficiency directly improves operational savings while boosting competitiveness.”

Private financing models and innovative investment strategies are essential to drive the adoption of sustainable electricity and comprehensive energy efficiency solutions in Mexico. Businesses are leveraging internal capital allocation, market-driven incentives, and external private funds to scale these initiatives, like Mexico’s Development Bank’s Eco Crédito Sustentable program to support the financing of energy efficiency projects for SMEs nationwide. Similarly, the Climate Investment Funds’ US$1 billion initiative aims to reduce industrial emissions in Mexico by providing access to low-cost financing, with each dollar from the fund expected to leverage an additional US$12 from development banks and private investors. These financial mechanisms are crucial for overcoming capital constraints and accelerating the transition to a lowcarbon economy.

However, Aquiles López, President of CANAME, pointed out that many industrial players still face significant financial and structural challenges in deploying renewable solutions at scale. “At the industrial level, the financial structure remains a challenge to make full use of alternatives such as solar

energy,” he said. “Although distributed generation limits were increased to 750 kW, that is still not enough. Companies face additional challenges not only with distributed generation but also with electromobility. The opportunity lies in allowing closed-loop solar generation systems to feed these emerging charging needs, producing a strong impact in reducing carbon footprints.”

Beyond direct operational shifts, companies are deploying market-driven strategies and commercial models to scale sustainable electricity and energy efficiency solutions in Mexico. These strategies include creating new demand, leveraging carbon credits, and utilizing international reporting requirements

to finance green projects. Mexico is preparing to relaunch its national carbon market with an ambitious plan that combines unlimited use of carbon offsets under its emissions trading system (ETS) and the creation of a new national registry to strengthen transparency and supply.

This development provides companies with opportunities to generate revenue from carbon credits, which can be reinvested into further sustainability initiatives. Additionally, international corporations are entering into agreements to purchase carbon credits from Latin American forestry projects, demonstrating the growing demand for highquality offsets in the region.

MEXICO’S AVIATION FRONTIER: FORGING CONNECTIVITY FOR GROWTH

Mexico’s aviation and airport system is undergoing a critical transformation to meet rising passenger demand, strengthen connectivity, and enhance competitiveness in logistics and tourism.

“OEMs

are making significant investments to make aircraft more sustainable. Modern aircraft are far more energy efficient than they were 10 or 20 years ago”

Carlos

Campillo

Partner

| Sierra Latam

City, Cancun, Guadalajara, Monterrey, and Tijuana—underscoring the need for expanded infrastructure. Cargo operations show a similar pattern, with “90% of Mexico’s air freight moving through Mexico City, Guadalajara, and Monterrey,” Martínez added. Addressing tariff challenges and trade headwinds, r icardo Campos, Director General, Grupo OMA, noted, “Cargo will continue to grow rapidly thanks to nearshoring, regardless of what happens in the United States.”

Between January and August 2025, more than 128 million passengers traveled through Mexican airports, putting the country on track to surpass the 186.6 million record set in 2023, according to the Federal Civil Aviation Agency (AFAC). “President Sheinbaum aims to position Mexico among the world’s Top 5 tourism destinations, but this can only be achieved through the right infrastructure investments,” said Cintya Martínez, Country Manager, IATA, at the Mexico Business Summit.

However, 63.6% of passenger traffic remains concentrated in five airports—Mexico

Amid congestion at key hubs such as Mexico City International Airport (AICM), the Ministry of Infrastructure, Communications, and Transport (SICT) implemented new regulations for allocating takeoff and landing slots at saturated airports, effective Oct. 15, 2025. Air traffic is also being redirected from AICM to Felipe Ángeles International Airport (AIFA). “AIFA currently has capacity for 20 million passengers and aims to double that to 40 million,” said Lieut. Colonel Héctor reyes, Director of Strategic Planning, AIFA.

These measures seek to optimize airspace, improve safety, and prepare for major events such as the 2026 FIFA World Cup, which could bring an additional five million visitors, according to Mexico City Mayor Clara

Brugada. ricardo Dueñas, Director General, Grupo OMA, emphasized that “infrastructure investments are long-term decisions— airport groups plan for the next decade, not year to year.” Ongoing projects include terminal expansions, runway rehabilitation, and improved ground connectivity to accommodate growing demand.

Airport modernization investment has reached record levels, with MX$134 billion allocated to upgrade 62 airports between 2025 and 2030, according to the federal government. The program aims to handle an additional 32 million passengers over five years and create more than 200,000 jobs. Key projects include Guadalajara’s second runway—which will boost capacity by 70%—and Monterrey Airport’s expansion to serve 18 million passengers annually through an MX$8 billion investment. AICM is also receiving MX$8.5 billion in upgrades to sustain operations near saturation levels.

Technology has become a strategic pillar for competitiveness and passenger experience. “Digitization is the only way to optimize existing infrastructure without increasing costs for the end user,” said Dueñas. Major airports are deploying digital systems, biometric security, self-check-in, automated baggage handling, and intelligent signage. “AI has now become a necessity, but its implementation requires careful risk analysis,” added reyes. According to SITA’s Air Transport IT Insights 2024 report, 74% of airlines and 72% of airports expect their IT spending to rise over the next two years.

“OEMs are making significant investments to make aircraft more sustainable. Modern aircraft are far more energy efficient than they were 10 or 20 years ago,” said Carlos Campillo, Partner, Sierra Latam. In 2024, total industry investment in technology reached approximately US$37 billion for airlines and nearly US$9 billion for airports.

ARTIFICIAL INTELLIGENCE: OPERATIONAL EFFICIENCY FO R BUSINESS

The influence of Artificial Intelligence, especially Generative AI, is fundamentally reshaping the global economy and enterprise operations. AI is no longer a peripheral technology but the base of corporate competitiveness and the primary platform for productivity, said Bruno Pancica, Business Growth Leader, IBM, at Mexico Business Summit 2025.

“Generative AI will have an impact equivalent to 7% of global GDP, about four times Mexico’s GDP, driven by productivity gains from automation, workforce upskilling, and the creation of new products, services, and business models,” he said.

The speed, scale, and reach of Generative AI’s impact are unprecedented. In terms of productivity, AI enables the automation of non-routine cognitive tasks like coding, data analysis, and text drafting, tasks that previously required specialized human intervention.

Generative AI also introduces the concept of the Hybrid Workforce, marking a shift in how operational structures are designed. “In a few years, the first point of contact of a company will be a digital worker, meaning tech that is now doing a repetitive task,” said Pancica.

Approximately 25% of current work tasks could be automated by Generative AI. “This allows human workers to focus on highervalue activities such as strategy, innovation, and leadership.” By simulating human behavior and integrating AI into real-life

scenarios, a new operational model emerges, orchestrating the interaction between human and machine across departments like Procurement, Accounting, Human resources, and Accounts Payable/receivable.

The Impact and results of Intelligent Automation

Industrial companies are among the most aggressive adopters, betting on AI, automation, Internet of Things (IoT), and the cloud to drive operational improvements. Over the next three years, 76% of industrial companies plan to implement AI and Machine Learning in their projects. Their most important business objectives, according to an IBM Institute of Business Value report, include improving operational efficiency (92%) and operational resilience (81%).

Intelligent automation delivers tangible results across the enterprise. “In IBM, we have saved billions in our processes across

our areas, like procurement or analytics, by using this technology,” said Pancica.

In manufacturing, smart automation has reduced scheduled downtime by 75% and increased asset availability by 50%. This led to an added capacity to manufacture 70,000 additional vehicles per year in one example.

In procurement, applying AI in purchasing led to a 20% reduction in personnel costs and a reduction of US$2 billion (MX$36.7 billion) in supplier spending year-over-year.

For AI adoption to succeed at an enterprise scale, organizations must choose a technology platform that addresses costs, intellectual property, and g overnance.

“Technology is no longer a cost center; it is the platform that enables companies to increase efficiency, innovate, improve customer experience, and streamline decision-making,” says Pancica.

INTEGRAL DEVELOPMENT OF THE PROJECT TREN MAYA

The Mayan Train has transported 1.7 million passengers since the start of its operations in 2023. The federal government considers the project still holds potential for further development in the tourism and freight sector to transport goods to North and Central America.

“We are also trying to consolidate this as a mobility system, and not just as a tourist train. We are aiming for people to adopt it as an alternative to road travel, as the train offers many more advantages than the bus, for example”

Gral. Brig. E.M. Germán Redondo Head of the Corporate and Commercial Strategy Unit | Tren Maya

1,735,405 passengers since the start of its operations on Dec. 16, 2023. r edondo noted the 1,554km railway, which features 34 stations, was executed over four years. “Four years is a very significant timeframe. No project of this magnitude has ever been developed in such a short period of time. Not only was it constructed, but it is already operational,” redondo notes.

Operational data from Dec. 2023 to Oct. 24, 2025, shows that national tourists make up the largest share of passengers at 37.75%, followed by local passengers at 28.42%, special ticket holders at 27.41%, and international passengers at 6.42%. The two most successful routes are Merida–Cancun Airport and back.

During the Mexico Business Summit 2025 in Monterrey, Nuevo Leon, Brigadier General Germán redondo, Head of the Corporate and Commercial Strategy Unit, Mayan Train, reported that the train has transported

The passenger service currently runs 20 daily services across seven routes, utilizing a portion of its 42-train fleet. The fleet, which is being built in Ciudad Sahagun, Hidalgo, with 70% national content, includes 32 hybrid trains and 10 diesel trains. These are divided

into regular, long-distance, and restaurant car configurations. “We are also trying to consolidate this as a mobility system, and not just as a tourist train. We are aiming for people to adopt it as an alternative to road travel, as the train offers many more advantages than the bus, for example,” redondo added.

The project also includes a security plan, with 3,200 elements from the National Guard dedicated to securing the infrastructure and passengers through patrols, onboard surveillance, and security checkpoints. Environmentally, redondo says the project includes 546 fauna passages and the creation of four new national parks.

Freight Integration and Investment Plan

r edondo outlined a two-phase plan for integrating a freight service, designed to connect the entire North American rail

system and align with the Interoceanic Corridor (CIIT).

Phase one, from 2025 to 2026, includes the construction of multimodal terminals at Palenque, Progreso, and Cancun, and a distribution terminal at Poxila. This phase also involves establishing fuel transport capabilities to the Cancun International Airport. Phase two, expected to be deployed in 2027, will add a multimodal terminal in Chetumal and operation patios in Valladolid, Escarcega, Xpujil, and Pomuch. The freight network is intended to transport fuel, steel, cement, grains, and intermodal services.

The government is also promoting investment opportunities in two priority areas: tourism, including hotel infrastructure and tour packages, and industry, focusing on logistics, agro-industry, and manufacturing, with opportunities for public-private partnership (PPP) schemes in industrial parks.

BRIDGING THE TALENT GAP: STRATEGIES FOR MEXICO’S FUTURE WORKFORCE

Mexico has emerged as a global hub for advanced manufacturing. This growth generates strong demand for specialized engineers and technicians. Yet many companies report a skills gap, as graduates often need extra training to meet modern factory requirements. Alignment between academia and industry is crucial to developing professionals who can adapt to increasingly complex production environments, according to experts at Mexico Business Summit 2025.

“The key is to be close with companies, which arrive with very different talent needs,” said Carlos Atoche, Dean of the School of Engineering and Technology, UDEM.

“The lack of specialized talent is not a problem exclusive to Mexico; it is affecting all countries in the world”

Óscar Santos Founding Partner | Santos&Becker

Advanced manufacturing requires crosscutting competencies such as complex problem-solving and systems thinking; proficiency with digital tools, such as CAD/ CAM, simulation, and data analytics; handson experience with automation and robotics systems; and a lean manufacturing mindset and continuous-improvement orientation.

Mexican universities and companies are co-developing new training approaches. Academic programs now include hands-on labs and courses in automation, robotics, AI, and the Internet of Things (IoT). Engineering departments offer modules on programmable logic controllers (PLCs), predictive maintenance using machine learning, and collaborative robots (cobots). Joint initiatives, such as industry-sponsored living labs and innovation centers, allow students to work on real manufacturing projects. Some programs even align coursework with industryrecognized certifications or international standards, ensuring graduates gain skills

immediately valuable to employers. “The main skills the education sector needs to teach are digitalization and the English language,” said Enrique Sosa, Dean, UNAQ. He emphasizes that these two competencies have become essential across all industrial roles.

However, that is not the whole picture. Emphasizing lifelong learning, certification of practical skills, and cross-sector collaboration will help attract and retain the specialists needed for future innovation. “Beyond technical capabilities, it is necessary to build up students’ soft skills, which alongside continuous learning will allow them to prepare for the future,” added Sosa.

As universities integrate emerging technologies, companies are also evolving their hiring priorities. “Students must now understand how to work with AI, as companies will demand them to know how to use it,” said Juan rebolledo, Chief Strategy Officer, Lottus Education. Collaborative curriculum design ensures that programs reflect these rapid changes in digital transformation. “The main reason that leads foreign companies to choose a location to build a plant is talent availability,” added rebolledo, highlighting the direct link between talent development and foreign investment.

Updating labs and curricula rapidly is difficult due to budget constraints and red tape, however. Smaller universities or suppliers may lack resources to join partnerships. Aligning academic and industry priorities can be complex, as each has different timelines and metrics. regional disparities also mean some areas have limited access to advanced

training facilities. This on top of challenges for students themselves. “One of the main challenges in training modern professionals is mental health. Many individuals enter the workforce suffering from anxiety or depression, which heavily affect company productivity,” warned Sosa. Addressing this human factor is becoming as critical as technical training.

To overcome structural limitations, shared centers of excellence can pool resources from government, industry, and academia. Modular courses and online learning extend training beyond campus labs. Government incentives, such as tax credits or grants for industry–university projects, encourage collaboration.

Looking ahead, a robust talent pipeline will be essential for Mexico to remain competitive in global automotive and aerospace markets. “The lack of specialized talent is not a problem exclusive to Mexico; it is affecting all countries in the world,” noted Óscar Santos, Founding Partner, Santos&Becker. He argues that global competition for talent underscores the urgency of strengthening local education systems and partnerships.

The international competition for skilled engineers and technicians is intense, so Mexico must emphasize its strengths. “Mexico was previously seen as a talent exporter, but during the past four years, it has become a talent importer,” said Gustavo Solares, Managing Partner Monterrey, Korn Ferry. This shift reflects the country’s growing attractiveness as a professional destination. “Mexico will continue being an attractive investment destination for many companies,” added Santos.

MEXICO’S BLUEPRINT FOR ADVANCED MANUFACTURING, R&D, INNOVATION

Mexico is redefining its industrial landscape, transitioning from a manufacturing powerhouse to a hub for advanced research and innovation. In 2024, the country attracted US$36.87 billion in foreign direct investment (FDI), with 54% directed to manufacturing, primarily in transport equipment, according to the Ministry of Economy. The automotive sector alone accounted for US$23.98 billion, reinforcing its role as the backbone of Mexico’s advanced manufacturing capacity.

“We must invest in strategies that increase emotional salaries—professional development, work-life balance, and a sense of belonging— which are becoming as valuable as compensatio”

Ricardo Apaez CEO | DRIVEN / CLAUT Innovation Center

exist, so the country’s value proposition has emphasized manufacturing over innovation and differentiation,” he noted. Limited public investment compounds the issue: “Historically, Mexico has invested only 0.5% of GDP in r&D. To compete globally, investment must reach at least 2%.”

Industry leaders stress that innovation today extends beyond products—it shapes how manufacturing is executed. At ZF Group, initiatives focus on sustainable, data-driven production. “Many suppliers in Mexico cannot work with major companies because they lack a sustainability strategy,” says Jorge Vázquez, r&D Head Mexico, ZF Group. Integrating sustainability and r&D is increasingly essential for Tier 1 suppliers to remain competitive in the global value chain.

Yet as Mexico strengthens its industrial footprint, it faces the challenge of building a robust innovation ecosystem. “Despite close commercial ties, North America still experiences significant disruptions and gaps in supply chains,” says Eugenio Marín, CEO, FUMEC. He emphasizes that enhancing r&D integration and regional coordination will be key to sustaining long-term competitiveness.

Technological and research activity is concentrated in Mexico City, Guadalajara, and Monterrey, where corporate r &D centers, innovation clusters, and universities collaborate to foster engineering talent. However, innovation has lagged behind industrial growth. “Mexico has extensive experience in automotive and manufacturing, but it has fallen behind in innovation,” says r icardo Apaez, CEO, D r IVEN/CLAUT Innovation Center.

Apaez explains that Mexico’s development model has historically relied on its manufacturing strength rather than knowledge creation. “Few private innovation centers

Human capital is also pivotal. “Advanced manufacturing requires high specialization, which demands changes in company culture and internal paradigms,” says rebeca Parra, CHrO, ArTIGrAF Group. She highlights that innovation depends not only on technical skills but also on knowledge management and leadership practices.

The COVID-19 pandemic reshaped labor expectations, prompting companies to rethink retention strategies. “Many employees now value benefits such as spending more time with family,” Parra explains. Organizations increasingly offer flexible work arrangements and non-monetary incentives to attract and retain talent.

Apaez notes that Mexico may not compete with US salaries but can offer alternative motivators: “We must invest in strategies

that increase emotional salaries—professional development, work-life balance, and a sense of belonging—which are becoming as valuable as compensation.”

Balancing technology and human talent is critical for strengthening Mexico’s innovation ecosystem. Parra adds that knowledge continuity remains a challenge: “We must

improve the transfer of knowledge from senior employees to younger generations.” Mentorship programs and lifelong learning initiatives are central to maintaining competitiveness in high-tech manufacturing.

“Long ago, many in the United States questioned the technical capabilities of Mexicans. Now, nobody does,” says Jorge Vázquez.

CHALLENGES AND OPPORTUNITIES FOR THE DATA CENTER SECTOR IN MEXICO

As Mexico emerges as a primary data center hub for Latin America, accelerated by the dual drivers of nearshoring and widespread digitalization, the country needs to address critical challenges to sustain growth. The sector’s long-term viability depends on solving infrastructure constraints, particularly in energy and water, as noted by industry leaders.

“Without data centers, we will not be a competitive country because we will not be able to respond to the same dynamic that is taking shape in the digital era globally,” noted Adriana rivera Cerecedo, Executive Director, MEXDC, at Mexico Business Summit 2025.

The Mexican Data Center Association (MEXDC) estimates the sector could reach 1,516MW of installed capacity by 2030, attracting over US$18.1 billion in direct investment. This expansion is expected to create over 20,700 direct and nearly 76,000 indirect jobs, aligning with national digitalization and employment efforts. The current operational market is estimated at approximately 235MW, with another 74MW under construction. The planned capacity pipeline, however, now exceeds 700MW, reflecting intense investment.

This demand is driven by two main forces. First, companies participating in the nearshoring trend require low-latency data processing for new manufacturing plants, which increasingly rely on automation, AI, and industrial IoT. The rise of AI is a particularly intense energy driver; according to MEXDC, a single training of a large-scale

AI model can consume as much energy as 100 homes in one year. Second, domestic data consumption, cloud adoption, and data residency rules are making in-country infrastructure a requirement.

Major cloud providers are investing heavily. Amazon Web Services (AWS) is investing US$5 billion in a new region in Queretaro, while Microsoft and Google have also established or announced new regions. New entrants like CloudHQ have announced a 900MW campus in Queretaro, securing 200MW of initial power.

Geographically, Queretaro is the established hub. However, saturation and infrastructure constraints are encouraging the development of secondary hubs in Monterrey and the Bajio region, though these markets also face energy and water challenges.

Challenges for Data Center Development

The sector faces critical infrastructure hurdles, being energy a key challenge. The projected 1,516MW of capacity by 2030 is nearly equivalent to the entire energy demand of Queretaro. Without solutions to these energy bottlenecks, MEXDC warns that future investment may be diverted to other regional hubs such as Chile or Colombia. “Our data center infrastructure today is not sufficient to enable autonomous vehicles, for example. A car of this type cannot have delays, it cannot be left ‘thinking.’ Data centers are the backbone of all this,” rivera exemplified.

the most attractive destination for foreign investment and advanced manufacturing in Latin America.

With growth of 5.8% according to INEGI, Nuevo Leon is recognized as Mexico’s most competitive region and one of North America’s most dynamic industrial hubs. The confirmation that USMCA guarantees dutyfree access to the world’s largest market has further strengthened Nuevo Leon’s appeal as an investment destination.

The first wave of nearshoring established Nuevo Leon as Mexico’s leading state in attracting foreign investment. Under the current trade scenario, a second, larger wave is expected, with companies worldwide relocating production within the USMCA region to avoid additional costs and maintain competitiveness. Efforts are being strengthened to attract companies currently operating in countries affected by new tariffs, including China, Vietnam, South Korea, Indonesia, Malaysia, and Switzerland. With the USMCA providing at least 16 years of trade certainty, Nuevo Leon offers a stable and competitive environment for investment relocation.

Made in Nuevo León, Logistics Hub

The Nuevo Leon Ministry of Economy has reinforced the “Made in Nuevo Leon” strategy, which focuses on integrating fully local supply chains in the production of goods for the North American market. This ensures that companies operating in the state comply with USMCA rules of origin and avoid the tariff costs now faced by other countries., “What is made in Nuevo Leóo, with supply chains made in Nuevo Leon, is the best option for companies seeking stability, competitive advantages, and unrestricted access to the North American market,” said Emmanuel Loo, Acting Head, Ministry of Economy.

Nuevo Leon’s growth as an international trade hub has also attracted leading global logistics companies, including rhenus, Fracht, MSC, DSV, CEVA, and Traxión. These firms view the state as an ideal platform to connect

manufacturing with the US and Canadian markets, reinforcing the region’s export and distribution infrastructure. The combination of a duty-free environment, privileged access to the USMCA, robust local supply chains, and advanced logistics infrastructure positions Nuevo Leon as a prime location for companies seeking to compete in the North American market without additional costs.

Trade, Labor, and Investment Data

In 2024, Nuevo Leon recorded exports totaling US$66.46 billion, a 4.57% increase from the previous year. Leading products were machines and data processing units not specified elsewhere, automobiles primarily designed for passenger transport, and automotive parts and accessories. The United States was the primary destination, accounting for US$58.47 billion, followed by Canada with US$1.39 billion and Brazil with US$605 million. Imports reached US$65.88 billion, up 2.28% year-over-year, led by intermediate iron or non-alloy steel products, automotive parts, and integrated electronic circuits. Most imports originated from the United States (US$24.85 billion), followed by China (US$12.50 billion) and South Korea (US$4.92 billion).

In May 2025, international sales totaled US$5.83 billion, with purchases at US$5.35 billion, resulting in a positive net trade balance of US$480 million. The main export remained machines and data processing units, while automotive parts and accessories dominated imports. The primary trading partners continued to be the United States, Canada, and Brazil for exports, and the United States, China, and South Korea for imports.

Foreign direct investment in Nuevo Leon reached US$2.10 billion in 2024, distributed across reinvested earnings, new investments, and intercompany accounts. Since 1999, the state has accumulated US$68.51 billion in FDI, reflecting its long-term attractiveness for international investors. Quarterly export trends showed minor fluctuations, with 4Q24 totaling US$15.20 billion, a slight decrease of 0.6% compared to the previous quarter.