{"id":6577,"date":"2024-09-01T04:25:32","date_gmt":"2024-09-01T04:25:32","guid":{"rendered":"https:\/\/www.lonestar-supply.com\/?p=6577"},"modified":"2024-09-01T04:25:32","modified_gmt":"2024-09-01T04:25:32","slug":"which-of-mexicos-states-are-best-prepared-for-nearshoring","status":"publish","type":"post","link":"https:\/\/www.lonestar-supply.com\/en\/oil-industry\/which-of-mexicos-states-are-best-prepared-for-nearshoring\/","title":{"rendered":"Which of Mexico\u2019s states are best prepared for nearshoring?"},"content":{"rendered":"<div class=\"title\">\n<div class=\"title-bottom\">\n<p><a href=\"https:\/\/mexiconewsdaily.com\/business\/mexico-states-nearshoring\/\"><b>Article by Mexico News Daily<\/b><\/a><\/p>\n<\/div>\n<\/div>\n<div class=\"post\">\n<p>The Mexican states best prepared to accommodate nearshoring investment are Nuevo Le\u00f3n, Aguascalientes and Coahuila, according to an analysis conducted by organizations from Mexico and Germany.<\/p>\n<p>The Mexican Institute for Competitiveness (IMCO) and the Friedrich Naumann Foundation for Freedom (FNF) evaluated the preparedness of all 32 federal entities to receive nearshoring investment based on 21 variables across four key areas: the labor market; housing and services; basic inputs; and the regulatory environment.<\/p>\n<p>The Mexican states best prepared to accommodate nearshoring investment are Nuevo Le\u00f3n, Aguascalientes and Coahuila, according to an analysis conducted by organizations from Mexico and Germany.<\/p>\n<p>The Mexican Institute for Competitiveness (IMCO) and the Friedrich Naumann Foundation for Freedom (FNF) evaluated the preparedness of all 32 federal entities to receive nearshoring investment based on 21 variables across four key areas: the labor market; housing and services; basic inputs; and the regulatory environment.<\/p>\n<blockquote><p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-373161 entered lazyloaded\" src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci.jpg\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-300x219.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-768x560.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-150x109.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-696x508.jpg 696w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-324x235.jpg 324w\" alt=\"Mexican Institute for Competitiveness graphic showing which various Mexican states rated highest in categories of labor market, housing, infrastructure and regulatory environment.\" width=\"850\" height=\"620\" data-lazy-srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-300x219.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-768x560.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-150x109.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-696x508.jpg 696w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci-324x235.jpg 324w\" data-lazy-sizes=\"(max-width: 850px) 100vw, 850px\" data-lazy-src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/IMCO-Nearshoring-graphci.jpg\" data-ll-status=\"loaded\" \/><\/p>\n<p>While overall, Nuevo Le\u00f3n, Aguascalientes and Colima came out on top of the nearshoring ratings, the Mexican Institute for Competitiveness also rated other states highest for specific qualities related to its four categories. For example, Guanajuato rated highest for the potential of its labor force, while Baja California rated highest for the lowest electricity prices and industrial wastewater treatment infrastructure. (IMCO\/X)<\/p><\/blockquote>\n<\/div>\n<div>\n<p>The organizations published the results this week in a report entitled \u201c<a href=\"https:\/\/imco.org.mx\/en\/wp-content\/uploads\/2024\/08\/Nearshoring_Report_20240814.pdf\" target=\"_blank\" rel=\"noopener\">Nearshoring: Priorities for Regional Development<\/a>.\u201d<\/p>\n<p>\u201cThe results show that Nuevo Le\u00f3n, Aguascalientes and Coahuila have a better performance than the rest of the states and have the facilities to take advantage of the trend of relocating production chains,\u201d IMCO and FNF said in the executive summary of the report, which was published in English and\u00a0<a href=\"https:\/\/imco.org.mx\/wp-content\/uploads\/2024\/08\/NearshoringEstados_Documento_20240814.pdf\" target=\"_blank\" rel=\"noopener\">Spanish<\/a>.<\/p>\n<p>\u201cIn contrast, Oaxaca, M\u00e9xico State and Zacatecas are regions whose structural conditions make it difficult to attract investment and increase economic activities related to nearshoring,\u201d the organizations added.<\/p>\n<p>The 21 variables considered in the analysis across the four key areas \u2014 as abbreviated by IMCO and FNF \u2014 were:<\/p>\n<ul>\n<li><strong>LABOR MARKET:<\/strong>\u00a0potential labor force; labor informality rate; monthly labor income; higher education; higher education institutions; technical professional level schools; job training; English proficiency.<\/li>\n<li><strong>HOUSING AND SERVICES:<\/strong>\u00a0housing production; piped water access in housing; electricity access in housing; drainage access in housing; public passenger transport units.<\/li>\n<li><strong>BASIC INPUTS:<\/strong>\u00a0electricity, water and natural gas sector; local marginal price of electricity; renewable water per capita; water treatment plants; industrial wastewater treatment.<\/li>\n<li><strong>REGULATORY ENVIRONMENT:<\/strong>\u00a0crime prevalence rate; investment attraction programs; regulatory framework efficiency.<\/li>\n<\/ul>\n<p>The northern border state ranked among the top 10 entities in 13 of the 21 variables and the top five in nine.<\/p>\n<ul>\n<li>Nuevo Le\u00f3n ranked No. 1 (along with five other states) for the amount of industrial wastewater it treats as a proportion of installed capacity. The state makes full use (100%) of its installed industrial wastewater treatment capacity.<\/li>\n<li>Nuevo Le\u00f3n ranked No. 2 in five variables, including English proficiency and regulatory framework efficiency.<\/li>\n<li>According to Education\u00a0<a href=\"https:\/\/www.ef.com\/wwen\/epi\/\" target=\"_blank\" rel=\"noopener\">First\u2019s English Proficiency Index 2023<\/a>, which the report cites, residents of Nuevo Le\u00f3n have the second best command of English in Mexico after residents of Jalisco. \u201cGiven the fact that the main opportunities generated by nearshoring are linked to Mexico\u2019s greater integration into North American production chains, English-language skills also represent an attractive element for investors and transnational companies that may come to the country,\u201d the report said.<\/li>\n<li>Only 3% of private companies that operate in Nuevo Le\u00f3n perceive the regulatory framework as an obstacle to their business objectives, according to the report.<\/li>\n<li>Among the other variables in which Nuevo Le\u00f3n was among the 10 best-ranked entities were housing production (dwellings built annually per capita); electricity prices; and public transport (units per capita).<\/li>\n<\/ul>\n<p>Governor Samuel Garc\u00eda is determined to make Nuevo Le\u00f3n Mexico\u2019s foremost nearshoring hub. He has actively courted investment from foreign companies, including during\u00a0<a href=\"https:\/\/mexiconewsdaily.com\/business\/nuevo-leon-governor-announces-2-big-investments-by-asian-firms\/\">visits to China and Japan last year<\/a>.<\/p>\n<p>The biggest investment coup for the state during Garc\u00eda\u2019s term of government has been\u00a0<a href=\"https:\/\/mexiconewsdaily.com\/business\/elon-musk-announces-tesla-gigafactory-coming-to-nuevo-leon\/\">Tesla\u2019s announcement<\/a>\u00a0that it will build a gigafactory near state capital Monterrey. However, CEO Elon Musk\u00a0<a href=\"https:\/\/mexiconewsdaily.com\/business\/musk-says-tesla-gigafactory-in-mexico-paused-because-of-potential-trump-tariffs\/\">recently said<\/a>\u00a0that the project is \u201cpaused\u201d pending the outcome of the United States presidential election.<\/p>\n<p>The IMCO\/FNF analysis isn\u2019t all good news for Nuevo Le\u00f3n. The state ranked among the last 10 entities in seven of the 21 variables. Its worst results were 27th for higher-education institutes per capita and 26th on two indicators related to water.<\/p>\n<\/div>\n<h2><strong>Where did the rest of the states rank?<\/strong><\/h2>\n<p>As mentioned above, Aguascalientes and Coahuila were also deemed to be well prepared to receive nearshoring investment.<\/p>\n<p>Both states were among the top 10 entities in 11 of the variables. Aguascalientes ranked as the second best state for nearshoring investment ahead of Coahuila as it was only among the bottom 10 states in three variables.<\/p>\n<p>Located in Mexico\u2019s industry-focused Baj\u00edo region, Aguascalientes fared well in a range of variables, including one that measures the number of water treatment plants in relation to the quantity of water licensed for industrial use.<\/p>\n<p>Very few private homes in Aguascalientes lack access to basic services such as piped water and electricity, allowing the state to rank among the top 5 in variables that measure the availability of basic services. It also ranked highly for housing production and for higher-education units per capita and the percentage of the economically active population with tertiary qualifications.<\/p>\n<p>Aguascalientes\u2019 worst result was 30th for the availability of renewable water per capita.<\/p>\n<blockquote>\n<figure id=\"attachment_373157\" class=\"wp-caption alignnone\" aria-describedby=\"caption-attachment-373157\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-373157 size-full entered lazyloaded\" src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report.jpg\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-300x219.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-768x560.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-150x109.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-696x508.jpg 696w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-324x235.jpg 324w\" alt=\"Bar chart showing what percentage of coverage each state in Mexico has in terms of access to potable water.\" width=\"850\" height=\"620\" data-lazy-srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-300x219.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-768x560.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-150x109.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-696x508.jpg 696w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report-324x235.jpg 324w\" data-lazy-sizes=\"(max-width: 850px) 100vw, 850px\" data-lazy-src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Conagua-2023-report.jpg\" data-ll-status=\"loaded\" \/><figcaption id=\"caption-attachment-373157\" class=\"wp-caption-text\">In a 2023 report, Mexico\u2019s federal water commission Conagua reported that Nuevo Le\u00f3n, Coahuila and Aguascalientes all had over 99% coverage statewide for potable water, well over the national average of 96.1%, although IMCO noted that access to water in all three states as a basic input is a challenge. (Conagua)<\/figcaption><\/figure>\n<\/blockquote>\n<p>According to the report, Coahuila has the lowest labor informality rate in the country, allowing it to rank first in that variable.<\/p>\n<p>Coahuila ranked No. 3 for the number of technical professional level schools per capita, and also ranked third for the percentage of companies that are aware of government programs aimed at attracting investment in the state.<\/p>\n<p>Its worst result was 32nd (last) for English proficiency, a surprise given that the state borders the United States.<\/p>\n<p>\u201cNuevo Le\u00f3n, Aguascalientes and Coahuila have favorable conditions to attract investment related to nearshoring,\u201d IMCO said in a press release.<\/p>\n<p>\u201cThey have more skilled labor, better working conditions and better infrastructure. However, access to water as a basic input is a challenge.\u201d<\/p>\n<blockquote>\n<figure id=\"attachment_373172\" class=\"wp-caption alignnone\" aria-describedby=\"caption-attachment-373172\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-373172 size-full entered lazyloaded\" src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant.jpg\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-300x200.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-768x512.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-150x100.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-696x464.jpg 696w\" alt=\"Maxion Structural Components announcement of plant expansion in Monclova, Coahuila. About 100 employees sit in chairs in an audience watching about 12 people seated on a makeshift stage with a banner above them\" width=\"850\" height=\"567\" data-lazy-srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-300x200.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-768x512.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-150x100.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant-696x464.jpg 696w\" data-lazy-sizes=\"(max-width: 850px) 100vw, 850px\" data-lazy-src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/Maxio-Structural-Components-announces-expansion-in-Coahuila-plant.jpg\" data-ll-status=\"loaded\" \/><figcaption id=\"caption-attachment-373172\" class=\"wp-caption-text\">Maxion Structural Components, a division of the global automotive parts maker Maxion, announced this week that it was investing 1.3 billion pesos (US $69.7 million) in its existing plant in Monclova, Coahuila, a move that Gov. Manolo Jim\u00e9nez Salinas cited on his Twitter account as an example of the state\u2019s attractiveness to nearshoring companies. (Gov. Manolo Jim\u00e9nez\/X)<\/figcaption><\/figure>\n<\/blockquote>\n<p>The nearshoring preparedness rankings of all 32 states appears below.<\/p>\n<ol>\n<li>Nuevo Le\u00f3n (Top 10 on 13 variables\/bottom 10 on 7)<\/li>\n<li>Aguascalientes (11\/3)<\/li>\n<li>Coahuila (11\/9)<\/li>\n<li>Colima (10\/10)<\/li>\n<li>Jalisco (10\/10)<\/li>\n<li>Tamaulipas (9\/10)<\/li>\n<li>Morelos (9\/11)<\/li>\n<li>Yucat\u00e1n (9\/11)<\/li>\n<li>Sinaloa (8\/8)<\/li>\n<li>Baja California Sur (8\/12)<\/li>\n<li>Tlaxcala (8\/12)<\/li>\n<li>Quer\u00e9taro (7\/9)<\/li>\n<li>Sonora (7\/11)<\/li>\n<li>Chihuahua (7\/12)<\/li>\n<li>Mexico City (7\/13)<\/li>\n<li>Quintana Roo (7\/13)<\/li>\n<li>Chiapas (6\/13)<\/li>\n<li>Tabasco (6\/14)<\/li>\n<li>Baja California (5\/14)<\/li>\n<li>Michoac\u00e1n (5\/14)<\/li>\n<li>Campeche (5\/15)<\/li>\n<li>Hidalgo (5\/15)<\/li>\n<li>Nayarit (5\/15)<\/li>\n<li>Durango (5\/16)<\/li>\n<li>Guanajuato (5\/16)<\/li>\n<li>Guerrero (4\/16)<\/li>\n<li>San Luis Potos\u00ed (4\/16)<\/li>\n<li>Puebla (4\/17)<\/li>\n<li>Veracruz (4\/17)<\/li>\n<li>Oaxaca (3\/17)<\/li>\n<li>M\u00e9xico state (2\/17)<\/li>\n<li>Zacatecas (2\/17)<\/li>\n<\/ol>\n<h2><strong>Which states have the most water and the cheapest electricity?<\/strong><\/h2>\n<p>Water and electricity are key considerations for companies planning to operate industrial plants in Mexico. Data shows that while water is more abundant in the south, electricity is cheaper in the north.<\/p>\n<p>According to the IMCO report, Chiapas has more than 20,000 cubic meters of water per capita, easily the highest amount in the country.<\/p>\n<p>Ranking second to fifth were:<\/p>\n<ul>\n<li>Oaxaca: 13,850 cubic meters per capita<\/li>\n<li>Tabasco: 12,931 cubic meters per capita<\/li>\n<li>Yucat\u00e1n: 9,573 cubic meters per capita<\/li>\n<li>Durango: 6,939 cubic meters per capita<\/li>\n<\/ul>\n<p>The entities with the lowest quantity of water per capita were Mexico City, M\u00e9xico state, Aguascalientes, Tlaxcala and Guanajuato.<\/p>\n<blockquote>\n<figure id=\"attachment_225779\" class=\"wp-caption alignnone\" aria-describedby=\"caption-attachment-225779\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-225779 size-full entered lazyloaded\" src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora.jpg\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-300x176.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-768x452.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-150x88.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-696x409.jpg 696w\" alt=\"Solar panel at solar farm\" width=\"850\" height=\"500\" data-lazy-srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-300x176.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-768x452.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-150x88.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora-696x409.jpg 696w\" data-lazy-sizes=\"(max-width: 850px) 100vw, 850px\" data-lazy-src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2023\/07\/Solar-planel-Plan-Sonora-Website-gob-of-Sonora.jpg\" data-ll-status=\"loaded\" \/><figcaption id=\"caption-attachment-225779\" class=\"wp-caption-text\">Sonora appeared in the report as one of several northern states with low prices for electricity, a potentially attractive feature for businesses seeking to nearshore in Mexico. The state is investing heavily in solar power and other renewable energy sources, hoping to make itself the Silicon Valley of renewable energy. (Government of Sonora)<\/figcaption><\/figure>\n<\/blockquote>\n<p>With regard to electricity, the states with the lowest prices per megawatt-hour were:<\/p>\n<ul>\n<li>Baja California<\/li>\n<li>Sonora<\/li>\n<li>Sinaloa<\/li>\n<li>Chihuahua<\/li>\n<li>Tamaulipas<\/li>\n<\/ul>\n<p>The states with the highest power prices were Baja California Sur, Quintana Roo, Campeche, Yucat\u00e1n and Oaxaca.<\/p>\n<h2><strong>Which states have the lowest crime rates and the highest proportion of tertiary-qualified workers?\u00a0<\/strong><\/h2>\n<p>Among other important considerations for companies considering relocating all or some of their operations to Mexico are crime and the availability of appropriately qualified workers.<\/p>\n<p>Yucat\u00e1n has the lowest crime prevalence rate per \u201ceconomic units\u201d or businesses, according to the report. The next lowest rates were in:<\/p>\n<ul>\n<li>Jalisco<\/li>\n<li>Tamaulipas<\/li>\n<li>Chiapas<\/li>\n<li>Guerrero<\/li>\n<\/ul>\n<p>The highest crime rates affecting businesses were in Sonora, Mexico City, Durango, Colima and San Luis Potos\u00ed.<\/p>\n<p>\u201cIn Sonora, CDMX and Durango, more than 3,400 out of every 10,000 businesses reported being victims of crime in 2021,\u201d the report said.<\/p>\n<p>\u201cIn Yucat\u00e1n, the rate was less than 1,300 economic units, while in Jalisco 1,570 out of every 10,000 units reported crime in that year.\u201d<\/p>\n<p>Extortion is one of the top crime threats businesses face in Mexico.<\/p>\n<blockquote>\n<figure id=\"attachment_373179\" class=\"wp-caption alignnone\" aria-describedby=\"caption-attachment-373179\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-373179 size-full entered lazyloaded\" src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign.jpg\" sizes=\"auto, (max-width: 850px) 100vw, 850px\" srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-300x200.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-768x512.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-150x100.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-696x464.jpg 696w\" alt=\"Colorful 3D sign for Merida in Merida, Mexico\" width=\"850\" height=\"567\" data-lazy-srcset=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign.jpg 850w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-300x200.jpg 300w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-768x512.jpg 768w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-150x100.jpg 150w, https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign-696x464.jpg 696w\" data-lazy-sizes=\"(max-width: 850px) 100vw, 850px\" data-lazy-src=\"https:\/\/mexiconewsdaily.com\/wp-content\/uploads\/2024\/08\/shutterstock_1470124220-merida-sign.jpg\" data-ll-status=\"loaded\" \/><figcaption id=\"caption-attachment-373179\" class=\"wp-caption-text\">Merida, often cited as one of Mexico\u2019s safest cities, located in Yucatan, which got the highest ratings in the report for a lack of business-targeted crimes like extortion. (ecstk22\/Shutterstock)<\/figcaption><\/figure>\n<\/blockquote>\n<p>As for the percentage of the economically active population (PEA) with higher-education degrees, Mexico City ranked first. Just over 41% of the capital\u2019s PEA has a tertiary qualification, ahead of Sinaloa (31%), Colima (29.9%), Tamaulipas (29.6%) and Baja California Sur (29.3%).<\/p>\n<p>The five states with the lowest percentage of workers with higher-education degrees were Oaxaca, Guerrero, Chiapas, Guanajuato and Michoac\u00e1n. The percentages in each of those states is below 20%.<\/p>\n<p>The state with the lowest percentage of companies that perceive the regulatory framework as an obstacle to their business objective was Tamaulipas (2%). Nuevo Le\u00f3n and Chihuahua ranked equal second, with just 3% of companies complaining about the regulatory framework in those states.<\/p>\n<p>Chiapas (4%) and Sonora (5%) ranked fourth and fifth, respectively.<\/p>\n<p>In contrast, 82% of companies in Michoac\u00e1n see the regulatory framework as an obstacle to their business, while the figures are also high in Jalisco (65%) and Puebla (48%).<\/p>\n<p><i>Mexico News Daily\u00a0<\/i><\/p>\n<div><\/div>\n<div><strong>Reference:<\/strong> <a href=\"https:\/\/mexiconewsdaily.com\/business\/mexico-states-nearshoring\/\">https:\/\/mexiconewsdaily.com\/business\/mexico-states-nearshoring\/<\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Article by Mexico News Daily The Mexican states best prepared to accommodate nearshoring investment are Nuevo Le\u00f3n, Aguascalientes and Coahuila, according to an analysis conducted by organizations from Mexico and Germany. The Mexican Institute for Competitiveness (IMCO) and the Friedrich Naumann Foundation for Freedom (FNF) evaluated the preparedness of all 32 federal entities to receive nearshoring investment based on 21 variables across four key areas: the labor market; housing and services; basic inputs; and the regulatory environment. The Mexican states best prepared to accommodate nearshoring investment are Nuevo Le\u00f3n, Aguascalientes and Coahuila, according to an analysis conducted by organizations from Mexico and Germany. The Mexican Institute for Competitiveness (IMCO) and the Friedrich Naumann Foundation for Freedom (FNF) evaluated the preparedness of all 32 federal entities to receive nearshoring investment based on 21 variables across four key areas: the labor market; housing and services; basic inputs; and the regulatory environment. While overall, Nuevo Le\u00f3n, Aguascalientes and Colima came out on top of the nearshoring ratings, the Mexican Institute for Competitiveness also rated other states highest for specific qualities related to its four categories. For example, Guanajuato rated highest for the potential of its labor force, while Baja California rated highest for the lowest electricity prices and industrial wastewater treatment infrastructure. (IMCO\/X) The organizations published the results this week in a report entitled \u201cNearshoring: Priorities for Regional Development.\u201d \u201cThe results show that Nuevo Le\u00f3n, Aguascalientes and Coahuila have a better performance than the rest of the states and have the facilities to take advantage of the trend of relocating production chains,\u201d IMCO and FNF said in the executive summary of the report, which was published in English and\u00a0Spanish. \u201cIn contrast, Oaxaca, M\u00e9xico State and Zacatecas are regions whose structural conditions make it difficult to attract investment and increase economic activities related to nearshoring,\u201d the organizations added. The 21 variables considered in the analysis across the four key areas \u2014 as abbreviated by IMCO and FNF \u2014 were: LABOR MARKET:\u00a0potential labor force; labor informality rate; monthly labor income; higher education; higher education institutions; technical professional level schools; job training; English proficiency. HOUSING AND SERVICES:\u00a0housing production; piped water access in housing; electricity access in housing; drainage access in housing; public passenger transport units. BASIC INPUTS:\u00a0electricity, water and natural gas sector; local marginal price of electricity; renewable water per capita; water treatment plants; industrial wastewater treatment. REGULATORY ENVIRONMENT:\u00a0crime prevalence rate; investment attraction programs; regulatory framework efficiency. The northern border state ranked among the top 10 entities in 13 of the 21 variables and the top five in nine. Nuevo Le\u00f3n ranked No. 1 (along with five other states) for the amount of industrial wastewater it treats as a proportion of installed capacity. The state makes full use (100%) of its installed industrial wastewater treatment capacity. Nuevo Le\u00f3n ranked No. 2 in five variables, including English proficiency and regulatory framework efficiency. According to Education\u00a0First\u2019s English Proficiency Index 2023, which the report cites, residents of Nuevo Le\u00f3n have the second best command of English in Mexico after residents of Jalisco. \u201cGiven the fact that the main opportunities generated by nearshoring are linked to Mexico\u2019s greater integration into North American production chains, English-language skills also represent an attractive element for investors and transnational companies that may come to the country,\u201d the report said. Only 3% of private companies that operate in Nuevo Le\u00f3n perceive the regulatory framework as an obstacle to their business objectives, according to the report. Among the other variables in which Nuevo Le\u00f3n was among the 10 best-ranked entities were housing production (dwellings built annually per capita); electricity prices; and public transport (units per capita). Governor Samuel Garc\u00eda is determined to make Nuevo Le\u00f3n Mexico\u2019s foremost nearshoring hub. He has actively courted investment from foreign companies, including during\u00a0visits to China and Japan last year. The biggest investment coup for the state during Garc\u00eda\u2019s term of government has been\u00a0Tesla\u2019s announcement\u00a0that it will build a gigafactory near state capital Monterrey. However, CEO Elon Musk\u00a0recently said\u00a0that the project is \u201cpaused\u201d pending the outcome of the United States presidential election. The IMCO\/FNF analysis isn\u2019t all good news for Nuevo Le\u00f3n. The state ranked among the last 10 entities in seven of the 21 variables. Its worst results were 27th for higher-education institutes per capita and 26th on two indicators related to water. Where did the rest of the states rank? As mentioned above, Aguascalientes and Coahuila were also deemed to be well prepared to receive nearshoring investment. Both states were among the top 10 entities in 11 of the variables. Aguascalientes ranked as the second best state for nearshoring investment ahead of Coahuila as it was only among the bottom 10 states in three variables. Located in Mexico\u2019s industry-focused Baj\u00edo region, Aguascalientes fared well in a range of variables, including one that measures the number of water treatment plants in relation to the quantity of water licensed for industrial use. Very few private homes in Aguascalientes lack access to basic services such as piped water and electricity, allowing the state to rank among the top 5 in variables that measure the availability of basic services. It also ranked highly for housing production and for higher-education units per capita and the percentage of the economically active population with tertiary qualifications. Aguascalientes\u2019 worst result was 30th for the availability of renewable water per capita. In a 2023 report, Mexico\u2019s federal water commission Conagua reported that Nuevo Le\u00f3n, Coahuila and Aguascalientes all had over 99% coverage statewide for potable water, well over the national average of 96.1%, although IMCO noted that access to water in all three states as a basic input is a challenge. (Conagua) According to the report, Coahuila has the lowest labor informality rate in the country, allowing it to rank first in that variable. Coahuila ranked No. 3 for the number of technical professional level schools per capita, and also ranked third for the percentage of companies that are aware of government programs aimed at attracting investment in the state. Its worst result was 32nd (last) for English proficiency, a surprise given that the state borders the United States. \u201cNuevo Le\u00f3n, Aguascalientes and Coahuila have favorable conditions to attract investment related to nearshoring,\u201d IMCO said in a press release. \u201cThey have more skilled labor, better working conditions and better infrastructure. However, access to water as a basic input is a challenge.\u201d Maxion Structural Components, a division of the global automotive parts maker Maxion, announced this week that it was investing 1.3 billion pesos (US $69.7 million) in its existing plant in Monclova, Coahuila, a move that Gov. Manolo Jim\u00e9nez Salinas cited on his Twitter account as an example of the state\u2019s attractiveness to nearshoring companies. (Gov. Manolo Jim\u00e9nez\/X) The nearshoring preparedness rankings of all 32 states appears below. Nuevo Le\u00f3n (Top 10 on 13 variables\/bottom 10 on 7) Aguascalientes (11\/3) Coahuila (11\/9) Colima (10\/10) Jalisco (10\/10) Tamaulipas (9\/10) Morelos (9\/11) Yucat\u00e1n (9\/11) Sinaloa (8\/8) Baja California Sur (8\/12) Tlaxcala (8\/12) Quer\u00e9taro (7\/9) Sonora (7\/11) Chihuahua (7\/12) Mexico City (7\/13) Quintana Roo (7\/13) Chiapas (6\/13) Tabasco (6\/14) Baja California (5\/14) Michoac\u00e1n (5\/14) Campeche (5\/15) Hidalgo (5\/15) Nayarit (5\/15) Durango (5\/16) Guanajuato (5\/16) Guerrero (4\/16) San Luis Potos\u00ed (4\/16) Puebla (4\/17) Veracruz (4\/17) Oaxaca (3\/17) M\u00e9xico state (2\/17) Zacatecas (2\/17) Which states have the most water and the cheapest electricity? Water and electricity are key considerations for companies planning to operate industrial plants in Mexico. Data shows that while water is more abundant in the south, electricity is cheaper in the north. According to the IMCO report, Chiapas has more than 20,000 cubic meters of water per capita, easily the highest amount in the country. Ranking second to fifth were: Oaxaca: 13,850 cubic meters per capita Tabasco: 12,931 cubic meters per capita Yucat\u00e1n: 9,573 cubic meters per capita Durango: 6,939 cubic meters per capita The entities with the lowest quantity of water per capita were Mexico City, M\u00e9xico state, Aguascalientes, Tlaxcala and Guanajuato. Sonora appeared in the report as one of several northern states with low prices for electricity, a potentially attractive feature for businesses seeking to nearshore in Mexico. The state is investing heavily in solar power and other renewable energy sources, hoping to make itself the Silicon Valley of renewable energy. (Government of Sonora) With regard to electricity, the states with the lowest prices per megawatt-hour were: Baja California Sonora Sinaloa Chihuahua Tamaulipas The states with the highest power prices were Baja California Sur, Quintana Roo, Campeche, Yucat\u00e1n [&hellip;]<\/p>","protected":false},"author":1,"featured_media":6565,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[25],"tags":[],"class_list":["post-6577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-industry"],"jetpack_featured_media_url":"https:\/\/www.lonestar-supply.com\/wp-content\/uploads\/2024\/09\/Woman-working-at-Continental-automotive-plant-Continental-696x464-1.jpg","_links":{"self":[{"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/posts\/6577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/comments?post=6577"}],"version-history":[{"count":1,"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/posts\/6577\/revisions"}],"predecessor-version":[{"id":6578,"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/posts\/6577\/revisions\/6578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/media\/6565"}],"wp:attachment":[{"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/media?parent=6577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/categories?post=6577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lonestar-supply.com\/en\/wp-json\/wp\/v2\/tags?post=6577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}