While Mexico’s economic recovery remains a work in progress, the expectation that Mexico will experience an economic resurgence on the back of a faster growth in the US and structural reforms is leading multinationals to assess whether they are prepared to capitalize on the country’s shifting economic landscape. Indeed, energy reform is likely to boost the economic prospects of northern states such as Coahuila and Tamaulipas, as well as Mexico’s long stagnant petro states like Campeche and Tabasco. Meanwhile, Mexico’s continued manufacturing growth will see more investments directed toward states such as Queretaro, Puebla, and Aguascalientes. Finally, the government’s plans for investments in infrastructure are likely to provide new opportunities in energy-rich and southern states, which multinationals will be keen to take advantage of over the next five years.
In order to provide our clients with a guide to these growing opportunities, FSG recently published a report on “Mexico Subnational Prioritization” which is aimed at helping companies:
- Evaluate how Mexico’s shifting economic geography creates new opportunities for their businesses
- Structural reforms, a recovering US economy, and an evolving manufacturing sector are reshaping the foundations of Mexico’s economy, forcing multinationals to adapt to this shifting economic geography and re-evaluate their sub-national prioritization.
- Deploy a structured framework for prioritizing opportunities in Mexico that leverages both quantitative and qualitative factors
- Multinationals should consider current market and industry fundamentals along with expected future opportunity drivers and operational enablers in their assessment of where to invest in Mexico moving forward.
- Evaluate whether they have the right capabilities in order to take advantage of these emerging opportunities
- In order to take advantage of emerging opportunities in Mexico, companies will need to develop their capabilities in the new regions, including investing in talent and distribution management.
To access the report, please click here.