As Mexico has benefited from FDI, the country continues to profit from the boost in manufacturing sales, which has contributed to over 80% of all exports in 2023. Manufacturing in Mexico represents a large portion of the country’s economy and is a driving force in the country’s growth. Not only are more US companies expanding supply chain efforts into Mexico, but other foreign companies have invested in offshoring efforts to find ways to be closer to the US economy. Total Mexican exports rose by 5.8% from May 2022 to May 2023, with the second-highest reading on record.
The aerospace manufacturing industry in Mexico is the sixth largest in the world, and its automotive manufacturing industry is a substantial contributing factor to the Mexican economy. Due to large foreign investments, and favorable free trade agreements, manufacturing semiconductors is expected to have a large boom in Mexico in coming years.
Mexico has also gained popularity in accessing high-quality IT talent. Despite Latin America often being a latecomer to technologies, this region is being recognized as an emerging technological hub on a worldwide scale due to increased investment in technology and education. Mexico and Colombia are among the top 10 countries with the most STEM graduates as a share of all higher-educated graduates; Chile, Brazil, Uruguay and Argentina sit within the top 20 countries.