Main Manufacturing Regions in Mexico for Business Expansion

Strong Network of Trade Agreements

• Mexico has one of the most extensive free trade networks in the world, including the USMCA (with the U.S. and Canada), the Free Trade Agreement with the European Union, and treaties with countries in Latin America and Asia-Pacific. In total, Mexico offers preferential access to more than 50 countries. This allows companies operating in Mexico to export to key markets with reduced or zero tariffs, boosting profitability and global competitiveness.

Macroeconomic Stability and Pro-Investment Climate

• Despite global challenges, Mexico has maintained relative economic stability compared to other emerging markets. Additionally, public policies have been designed to attract foreign direct investment (FDI), streamlining processes such as business incorporation, regulatory permits, and access to programs like IMMEX, which allows duty-free temporary import of goods and equipment used in export manufacturing.

Skilled and Cost-Competitive Labor

• One of Mexico’s greatest advantages is its highly skilled technical talent. Each year, the country produces thousands of engineers, technicians, and professionals specialized in manufacturing, electronics, mechatronics, automation, and logistics. This workforce is not only qualified but also cost-effective compared to other Western Hemisphere countries—resulting in greater operational efficiency for foreign companies.

Modern and Expanding Infrastructure

• Mexico continues to invest in the development of industrial parks, highways, ports, airports, and rail connectivity. Today, it has key logistics corridors that link manufacturing hubs with major export points—whether to the U.S., Asia, or Europe. Additionally, a growing number of certified industrial parks meet international standards for safety, sustainability, and energy efficiency.

Nearshoring: A Game-Changer

• The disruption of global supply chains, rising costs in Asia, and trade tensions have accelerated the nearshoring trend—relocating operations closer to the end market. In this context, Mexico has gained prominence thanks to its shared border with the United States and robust manufacturing ecosystem.More and more U.S. companies are moving production closer to North America to reduce delivery times, minimize logistical risks, and improve responsiveness. As a result, Mexico manufacturing areas are gaining traction among global manufacturers due to their cost-efficiency and strategic location.

🏭 Bajío: Guanajuato, Querétaro, Aguascalientes, San Luis Potosí

Widely regarded as Mexico’s industrial heartland, the Bajío has become one of the most dynamic regions for advanced manufacturing. It specializes in the automotive, aerospace, and heavy machinery sectors and has attracted significant foreign investment, building a highly competitive production ecosystem.

Key advantages include:

• A strategic location connecting easily with northern and central Mexico
• Efficient logistics corridors and Class A industrial parks
• Technical universities and specialized training institutes
• A strong local network of automotive and metal-mechanical suppliers

Major companies like General Motors in Silao and Toyota in Apaseo el Grande have set up large-scale operations here, focused on vehicle production and export components. Likewise, Bombardier Aerospace operates a major facility in Querétaro for manufacturing aircraft structures, taking advantage of the region’s engineering talent.

The Bajío offers not only operational efficiency but also a stable business environment—ideal for long-term growth in North America.

🛠️ Northern Mexico: Coahuila, Nuevo León, Chihuahua, Baja California

Northern Mexico stands out for its direct proximity to the United States, making it a strategic hub for companies reliant on fast logistics and frequent exports. The region has established leadership in electronics, metal mechanics, auto parts, and medical devices, backed by decades of experience in advanced manufacturing.

Key strengths include:

• A shared border with the U.S. and immediate land access for exports
• High installed capacity in industrial parks and maquiladoras
• Skilled labor and a strong cross-border business culture
• Robust support ecosystems: R&D centers, local suppliers, technical universities

Companies like Foxconn (electronics components in Ciudad Juárez) and Medtronic (medical devices in Baja California) leverage this logistical edge to serve the U.S. market efficiently. In Monterrey, Ternium leads industrial steel production, positioning the city as a metallurgy powerhouse.

Northern Mexico is ideal for just-in-time supply chains and companies that prioritize speed and proximity to North American clients.

💻 Western Mexico: Jalisco, Colima, Michoacán

Western Mexico has emerged as a hub for technological innovation and electronics, while also playing a key role in agroindustry thanks to strong agricultural output and port access. Guadalajara, the capital of Jalisco, is known as the "Mexican Silicon Valley" for its vibrant ecosystem of IT, electronic design, and startups.

Main advantages:

• Presence of global tech companies and innovation centers
• Access to Manzanillo Port, one of the most important on the Pacific Coast
• Talent pool in engineering, programming, and industrial design
• Excellent air and logistics connectivity with Asia and the U.S.

Companies like HP, Flex, and Intel have developed core operations in the region focused on design, assembly, and testing of electronic devices. Its proximity to agricultural zones also strengthens its role as an agroindustrial hub, ideal for food processing and export-oriented agribusiness.

Western Mexico is the perfect blend of tech innovation, port infrastructure, and digital talent.

🏙️ Central Mexico: Mexico City, State of Mexico, Puebla, Tlaxcala

Central Mexico is a strategically vital region. Not only is it home to the capital and largest consumer market, but it also provides access to a vast supplier base, specialized services, and logistics centers that connect to the entire country.

Key industries here include chemicals, pharmaceuticals, food, and beverages—driven by a mix of experience, regulation, and domestic demand.

Strengths of the region include:

• Proximity to the country’s largest internal market
• Well-developed transport infrastructure: highways, distribution hubs, inland customs
• Broad supplier ecosystem and regulatory institutions
• Skilled labor in engineering, biotech, and quality management

Companies like Bayer and Nestlé operate production and logistics facilities in the area, while Bimbo runs its main national manufacturing and distribution center here. This region is ideal for companies requiring national scale and access to multisector infrastructure.

🌱 Southeast Mexico: Yucatán, Tabasco, Veracruz, Campeche

Southeast Mexico holds significant potential for industrial growth, driven in recent years by strategic infrastructure projects and government policies aimed at regional development. Traditionally focused on agriculture, it is now emerging as a frontier for agroindustry, energy, textiles, and logistics.

Key advantages:

• Land availability and lower operating costs than saturated regions
• Government incentives to attract foreign investment
• Strategic projects like the Interoceanic Corridor and Dos Bocas Refinery
• Young workforce and growing technical education ecosystem

Companies like Holcim (building materials in Veracruz) and Kekén (pork agroindustry in Yucatán) already operate in the region, leveraging access to new markets and favorable conditions for industrial development.

The southeast is especially attractive to companies seeking geographic diversification, port access, and participation in large-scale infrastructure projects.

🚀 Nearshoring Momentum

This remains a top driver of investment, as U.S. firms reduce dependence on Asia and seek closer, faster supply chains. Mexico is the natural choice given its trade agreements and location.

🤖 Automation and Industry 4.0

Modern parks now include smart manufacturing features—IoT connectivity, ERP integration, energy efficiency, and automation. This allows companies to increase productivity and scale quickly.

🌱 Certified and Sustainable Industrial Parks

ESG standards and international regulations are pushing demand for parks with LEED, ISO 14001, or renewable energy capabilities. Companies seeking compliance with global standards increasingly prioritize these facilities.

🌍 Southeast as the Next Industrial Frontier

States like Veracruz, Tabasco, and Yucatán are gaining interest due to major infrastructure projects, favorable incentives, and less-saturated industrial real estate. Though still developing, the region offers long-term growth potential.

https://www.wsiworld.com/blog/how-ai-is-changing-manufacturing-revolutionizing-efficiency-growth
https://www.sandtech.com/insight/nearshoring-and-regional-manufacturing-ai-and-automation-make-it-economically-viable/
https://mexicobusiness.news/tech/news/nearshoring-and-ai-keys-business-reinvention-mexico
https://www.eleconomista.com.mx/estados/Norte-concentra-tercera-parte-de-la-produccion-manufacturera-20170825-0024.html
https://www.ifc.org/content/dam/ifc/doc/2025/mexico-sss-summary-es.pdf