The United States–Mexico–Canada Agreement (USMCA) impacts of the global pandemic, and international trade tensions have created the perfect opportunity to explore the benefits of nearshoring – and shifting manufacturing to Mexico. With a vast network in Mexico, CPKC’s experienced team can point you in the right direction and find the best locations to support your growing business.
Explore the benefits of shifting your manufacturing to Mexico
Favourable tax factors
A stable corporate tax rate and a strong incentive program makes Mexico a cost-effective location for manufacturing and distribution. Mexico enjoys one of the most favourable composite tariffs with the U.S. compared with China’s rate. Businesses nearshoring in Special Economic Zones (established to promote economic investment and growth) may be eligible to receive special tax incentives.
Highly trained workforce
Mexico offers a combination of affordable labour and an emphasis on education in industrial-related fields. Skilled direct labour is available in many of the maquiladoras ("twin plants") in Mexico – especially those servicing the aerospace, automotive, medical device and metal mechanic industries.
Increased infrastructure
Transportation and communications infrastructure have been upgraded in Mexico, promoting better flow of freight, reducing bottlenecks and improving logistics for U.S.-Mexico cross-border trade. Mexico has 16 major maritime hubs offering access to the Pacific and Atlantic Oceans.
Capacity for North American trade
CPKC started construction on the new International Railroad Bridge that spans the Rio Grande from Laredo, Texas to Nuevo Laredo, Tamaulipas. Upon completion in 2024, the second bridge span will increase train fluidity and capacity, enhance border security and keep Laredo-Nuevo Laredo at the centre of North American trade.
Start your nearshoring journey with CPKC
If nearshoring is a possibility for your business, CPKC can help. With a network that expands across 15 Mexican states and strategic alliances throughout the country, we can help you find the right location within Mexico to help you build and establish rail service for your business.