nearshoring
Mexico – The Best Nearshore Destination
Nearshoring to Mexico offers many advantages. In this article, we will explore why Mexico is the best nearshore destination for US companies.
April 26, 2023
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As companies worldwide seek to enhance their sustainability efforts and reduce their carbon footprint, nearshoring to Mexico has emerged as a promising solution. With a strong commitment to energy efficiency and a comprehensive set of policies in place, Mexico offers significant sustainability benefits for businesses. This article explores the findings and work of the Energy Efficiency in Emerging Economies (E4) programme in Mexico, shedding light on the energy efficiency improvements and opportunities that make nearshoring in Mexico a sustainable choice for businesses.
Mexico joined the International Energy Agency (IEA) in 2018 as the first member from Latin America, highlighting its dedication to energy efficiency within its broader energy reforms. Since 2010, Mexico has made substantial progress in energy efficiency, with policies covering multiple energy end-use sectors experiencing significant expansion (E4 Country Profile: Energy Efficiency in Mexico, 2021).
Efforts to improve energy efficiency in Mexico have yielded positive results, leading to a 5% reduction in additional energy use in 2018. Structural factors, such as the shift of economic activity from energy-intensive industries to less-intensive manufacturing and service sectors, contributed to these improvements. However, changes in transport modes, occupancy levels, appliance ownership rates, and expanding building floor area partially offset these gains (E4 Country Profile: Energy Efficiency in Mexico, 2021).
Mexico joined the International Energy Agency (IEA) in 2018 as the first member from Latin America, highlighting its dedication to energy efficiency within its broader energy reforms.
Mexico has implemented mandatory energy efficiency policies that cover a significant portion of its total energy use. In 2018, these policies accounted for 23% of Mexico’s total energy consumption, with the buildings sector having the highest coverage at 44%. Mandatory building codes for both commercial and residential buildings have played a crucial role in achieving energy efficiency in this sector. Furthermore, the transport sector has benefited from fuel efficiency standards for passenger cars, aligning Mexico’s car fleet with the global average (E4 Country Profile: Energy Efficiency in Mexico, 2021).
The energy efficiency advancements and opportunities in Mexico directly translate into sustainable benefits for businesses considering nearshoring. By nearshoring to Mexico, companies can leverage the country’s commitment to energy efficiency, reducing their environmental impact and carbon footprint. Access to a skilled workforce, cost-effective measures, and the potential for reduced CO2 emissions further enhance the sustainability advantages of nearshoring in Mexico.
Nearshoring to Mexico presents an opportunity for businesses to achieve their sustainability goals and promote energy efficiency. Mexico’s strong commitment to energy efficiency, supported by comprehensive policies and ongoing efforts, provides a conducive environment for sustainable business operations. By embracing nearshoring in Mexico, companies can reduce their carbon footprint, access cost-effective energy efficiency measures, and contribute to Mexico’s journey towards a more sustainable future.
Nearshoring to Mexico offers many advantages. In this article, we will explore why Mexico is the best nearshore destination for US companies.