BofA: 'Mexico has a big opportunity with nearshoring'
A qualified labor force with relatively low wages
From BofA Global Research:
“Mexico has a big opportunity with nearshoring as China is losing market share in the US. Nearshoring is the relocation of resources from one country to another which is closer to the final consumer. Given the fragmentation of global supply chains, US/China trade relations, changes in labor costs, and a prioritization of food and energy security, Mexico is uniquely positioned to win. In addition to its close proximity to the US, Mexico belongs to the USMCA free trade agreement, has a large manufacturing base and has both macroeconomic and political stability (important in the current macro environment). With a relatively qualified labor force and wages now lower than that of China, it’s no wonder that the manufacturing sector is booming, growing more than 5% this year.“
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