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:

• Mid-year Report, Mexico consolidates as Technology Hub
• Expansion Strategies to Mexico, How they Compare
• Updates on the Nearshoring trend, on Jobs by City and the Automotive Sector
• Mexican Exports to the U.S. Reach a Historic High
• Latin America Countries average of working hours

WHAT′S TRENDING?

Mexican Exports to the U.S. Reach a Historic High - July 2024? ? ???

Mexico is solidifying its position as a key trade partner for the United States, having achieved a record high in exports in May 2024, totaling $43.8 billion USD. Over the first five months of 2024, Mexico's exports reached $206.8 billion USD, setting a new benchmark. This growth trend, which began in 2023, shows a 6.1% increase compared to May 2023.?

According to the U.S. Census Bureau, Mexico now accounts for 15.9% of U.S. imports, making it the leading commercial partner ahead of Canada (13.2%) and China (12.6%). This impressive performance is occurring amidst a global supply chain reconfiguration, with the USMCA (T-MEC) further strengthening trade ties between Mexico and the U.S. Read more

Latin American Countries Continue to Lead in Average Working Hours by Country? ?– July, 2024? ?

OECD shows that Latin America continues to top the charts in terms of average working hours by country, with Mexico leading the ranking. This could be due to several reasons, including Economic structure, Social policies, and Lower wages.

At the lower end of this ranking are a large number of European countries, particularly those with advanced economies. Read more

?

Key Insights from Mexico’s Automotive Sector - ?July, 2024 ??

The “2Q 2024 Automotive Investment Report” by Directorio Automotriz highlights key trends in Mexico’s automotive sector. Germany led the way with 19.3% of the total investment, followed closely by China, which contributed 18.3%—equivalent to $2.26 billion USD across 20 investment projects, marking a 52.7% increase from 2023. Tier 1 and Tier 2 auto parts companies were the largest contributors, representing 64.6% of total investments, while suppliers of products and services made up 9.1%.?

The sector's growth in 2024 had a historically positive impact on employment and infrastructure, creating over 34,000 jobs nationwide and resulting in the remodeling or construction of more than 6.13 million square meters. The states of Coahuila ($2.2 billion USD), Puebla ($2 billion USD), and Nuevo León ($883.6 million USD) attracted the highest investment amounts, totaling over $5.1 billion USD combined. Read More

Monterrey, the city at the center of the Nearshoring Boom, leads Job Creation in Mexico ? – August, 2024? ?

In July 2024, the city Monterrey achieved a significant milestone by becoming the top region in Mexico for job creation. According to the Mexican Social Security Institute (IMSS), 15,944 new jobs were registered in Monterrey last month, a remarkable increase from the 6,950 jobs created in July 2023, representing a 129% year-over-year growth.?

This accomplishment not only made Monterrey the leader in job creation for July but also for the entire year. So far, 68,476 jobs have been generated, underscoring the region's economic vitality and solidifying its status as a major workforce hub in Mexico, leading the Nearshoring trend. Read more

GOODS READS

?

Expansion Strategies to Mexico, How they Compare ? – August, 2024.?

Establishing cost-efficient foreign operations has become a standard practice for tech companies, and for those needing real-time collaboration, choosing a nearshore location over offshore offers a distinct advantage.

Mexico has emerged as North America's go-to nearshore destination, offering the ideal blend of talent and cost-effectiveness. As a result, companies of all sizes are expanding into Mexico more than ever, employing various strategies based on their operational scale and objectives. When developing financial and risk evaluation scenarios for expansion into Mexico, what can you expect from a Do-It-Yourself (DIY) approach? Alternatively, if you opt to work with a local provider to facilitate the expansion, which engagement model would be most effective? And what key factors should be validated, especially if you're new to the Mexican market? Read more

Report: Mexico consolidates as Technological Hub ? – August, 2024.?

Mexico has solidified its position as a leading tech hub in Latin America, drawing significant foreign investment and flourishing in sectors such as software and IT services, according to Miguel ángel Sanabria Plascencia, president of the National Council of Software and IT Clusters (MxTI).

The country's strategic location, favorable investment climate, and highly skilled workforce make it an attractive destination for the tech industry. Mexico's IT market is projected to grow by 5-10% over the next five years. Global tech giants like Google and Microsoft have established operations in the country, driving employment, innovation, and technology transfer. The rise of nearshoring has further increased demand for IT solutions, reinforcing Mexico’s role in the global tech landscape, particularly in states like Jalisco, Mexico City, and Nuevo León. Read more

The most visited Latin America Countries by tourists, 2023/24

1. Mexico = 38 Million
2. Dominican Republic = 8 Million
3. Colombia = 5 Million
4. Argentina = 3.8 Million
5. Brazil = 3.6 Million?

Mexico Trivia

The biggest pyramid in the world is in Mexico.

The Cholula Pyramid is the biggest in sheer volume.

Suggestions? Critiques? Send feedback to [email protected] or reply to this email