In recent years, American small business owners have come to view Mexican manufacturing as an investment opportunity. Amid uncertainties at home, nearshoring in Mexico has drawn attention.
“American entrepreneurs maintain a strong interest in Mexico’s nearshoring potential for 2025,” said Tatiana Skumatenko, branch manager for Wise PanAmerican Solutions (WPS), “carefully weighing the country’s strategic advantages against both ongoing challenges and emerging political uncertainties.”
Based in Austin, Texas, WPS is a business that offers services to help firms looking to expand their operations in Mexico.
A Notable Rise in Trade Across the United States Southern Border
In September alone, trade between the United States and Mexico totaled $72.5 billion, representing an 8% year-over-year increase. According to the Census Bureau, Mexico has been number one in trade with the United States for nine consecutive months.
By comparison, Canada ranked number two in trade with the United States at $63.8 billion, followed by China at $54.3 billion in September. This year, trade between the United States and Mexico has totaled $632 billion, with Canada totaling the same and China totaling $437 billion.
Trade Numbers Reflected in Small Businesses
As these large trade numbers continue to position Mexico as one of the United States’ most valuable trade partners of late, Skumatenko attended the Austin Small Business Expo.
“During my recent participation at the Small Business Expo in Austin,” Skumatenko said, “I noticed that small business owners are interested in working with Mexico, especially in sourcing ingredients, raw materials, and products.”
While trade numbers increase, so does the interest of small businesses on either side of the border.
What Businesses Have Benefited Most
The top three exports from Mexico to the United States through Laredo, Texas, which until recently was the nation’s number one trade gateway, were auto parts, computers, and passenger vehicles. The top imports were auto parts, electric storage batteries, and passenger vehicles.
“I think the general sentiment regarding nearshoring in Mexico remains optimistic,” Skumatenko continued, “albeit with caution. While recent US election outcomes, Trump’s threats to impose tariffs, and the upcoming review in 2026 of the United States-Mexico–Canada Agreement (USMCA) pose concerns, Mexico has faced challenges even before the elections, including water shortages, energy supply limitations, and infrastructure issues.”
Optimism for Continued Growth
That said, Skutamenko remarked that the nearshoring momentum gained in 2024 would likely stay strong, at least not drastically.
“Those who recognize and value the benefits of Mexico as a nearshoring destination are willing to take on these risks and establish operations south of the border,” Skutamenko elaborated. “Notably, the Mexican Association of Private Industrial Parks expects around 450 new companies to arrive in Mexico by 2025.”
Interest in Mexican Manufacturing From Abroad
Outside business with the United States, German automotive supplier Mubea plans to open its third manufacturing plant in Ramos Arizpe, Mexico. The company employs more than 17,000 people across 54 locations in 18 countries, so Mubea’s investment in Mexico is noteworthy.
The factory will cost $60 million and open by the end of 2025, will create 200 jobs by producing automotive chassis for the North American automotive market.
“This new location represents an exciting expansion for Mubea,” said Mubea North America CEO James Sheehan, “and reinforces our commitment to innovation and excellence in automotive components.”
A Future for Growth Through Nearshoring
With manufacturing investments between the United States and Mexico rising and new markets becoming involved, Mexican nearshoring operations for small businesses are only gaining more interest. The impact of the recent presidential election remains to be seen.
Still, if Skumatenko’s opinion is correct, the outcome should have little effect on the growth of American manufacturing operations in Mexico.
