Everscale Monthly Insights

Welcome to this month's edition filled with regional?insights?worth keeping an eye on. Trends and Operational Best Practices.

Here is a glimpse of what we have for this month:

• Growth of the Aerospace Industry supported by the Nearshoring phenomenon and its impact on other industries.
• China’s Mexico Play: How Companies tap North American supply chains by investing in Mexico, amid USA-China tensions.
• CNBC's coverage of the “nearshoring boom” and multinational corporations involved.
• Countries with strategic locations have soft-landing options to attract foreign investment. What agencies are available by region, industry, and market strategy?
• Did You Know and Trivia Sections.

WHAT′S TRENDING?

The Growth of the Mexican Aerospace Industry is Supported by the Nearshoring Phenomenon -? December, 2023?

The Mexican aerospace industry has experienced significant growth, with the attraction of investments from multinational companies such as Bombardier Aerospace, Safran, Honeywell Aerospace, GE Aviation, Airbus and Boeing. This development has generated jobs and boosted the development of technical skills in the country's workforce. It has aerospace clusters in various regions, supported by national and international investments.

In 2023, the Mexican aerospace industry continued its growth trend, surpassing US$9.5 billion in exports and erasing the impact of Covid-19. The trend is attributed to the nearshoring phenomenon. FEMIA projects sustained growth in the sector through 2025, due to high demand in aircraft manufacturing programs and sales. Read More.

Mexico Ranks Second as Health Tourism Destination - November, 2023?

Over the past 10 years, the country has received 1.2 million foreign patients per year. After Thailand, it ranks second worldwide as a health tourism destination due to its proximity to the US, low costs, and the high quality of service provided. Bariatric surgery, dental and rheumatological treatments are the most requested medical services by foreigners in Mexico.

Sonora is the state with the highest rate of health tourism in Mexico, followed by Baja California, Baja California Sur, Mexico City, Chihuahua, Jalisco, Nuevo Leon, Puebla, Quintana Roo, San Luis Potosi, Tamaulipas and Yucatan, according to the National Bank of Foreign Trade. Read More.

Mexico’s booming exports expected to boost cross-border trade in 2024. US-Mexico freight volume to increase in 2024- December, 2023 ??

As more global supply chains shift manufacturing to Mexico, cross-border operators said nearshoring will be a key economic driver for the North American freight economy in 2024.

FreightWaves recently spoke with trade professionals who mostly remain bullish about the prospect of U.S.-Mexico cross-border freight flows next year. They also discussed nearshoring, cargo capacity, and hot commodities in 2024.? Read More.

GOODS READS

CNBC News: Mexico’s ‘nearshoring boom’ brings production closer to U.S. consumers in a recent CNBC television broadcast.

The expected foreign direct investment in Mexico for this year is set to reach $30 billion, driven by major multinational corporations like Tesla, Mondelez, Nissan, Honeywell, AT&T, Mattel, and Lego—last one visited by the CNBC team during a trip to Monterrey, Mexico. These investments are strategically aimed at establishing new manufacturing capacities to meet the demands of the U.S. market. Read More.

Soft Landing Options when Expanding into a New Region: The Subsidiary-as-a-Service Strategy

Countries with a strategic location in the region have soft-landing options to attract foreign investment. These options vary from industry, like the Shelter Model for the Manufacturing Industry, to the Subsidiary-as-a-Service Model for IT, but all of them help foreign companies obtain substantial cost savings and avoid unnecessary risks, compared to the Do-It-Yourself approach. Learn more on what agencies are available by region, industry and market strategy. Read More.

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