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Perspectives

United States

Report | Five reasons to consider Mexico

Summary

We’re hearing a lot these days about Mexico from a supply chain and manufacturing industry perspective. Many of the perceptions fall into two major themes:

  • Mexico is well positioned in close proximity to the Unites States, one of the largest consumer markets in the world, and possesses an attractive combination of industrial capacity in terms of real estate, developable land and low-cost but highly skilled labor.
  • Mexico is a dangerous place to do business. It is a no-man’s-land controlled by drug lords who are disrupting day-to-day business and pose potential danger to traveling company executives.

So which opinion is right? Neither—at least not completely. Mexico is neither a “slam dunk” choice for business expansion or relocation, nor an anarchic realm that manufacturers enter at their own peril. Just as every nation—including the United States—has advantages and drawbacks for international companies, so does Mexico.

Over the past few years Jones Lang LaSalle’s Industrial & Logistics team and research staff have carefully monitored the dynamics of Mexico. We feel that, while not perfect, Mexico is an increasingly attractive supply chain (manufacturing and distribution) location when looking to access the United States and elsewhere.

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