Principal and leader of Brattle’s Latin American Antitrust & Competition practice Veronica Irastorza has coauthored a report published by the Institute of the Americas on the importance of reliable clean energy and infrastructure for Mexico towards realizing North America’s nearshoring potential. Mexican manufacturing continues to grow as US companies “nearshore” certain operations in Canada or Mexico (as opposed to offshoring overseas), but Mexico faces several challenges as a nearshoring destination.
Electricity has proven to be a particularly complicated challenge given the current state of Mexico’s electricity-related infrastructure, supply-demand dynamics, and governmental policies currently being pursued – all of which may be an additional cost or even a potential deal-breaker for companies considering nearshoring in Mexico. In the report, the authors analyze the specific challenges and possible energy-related solutions that will help determine just how successful nearshoring in Mexico ultimately becomes. The conclusions in the report are supported by a survey of 32 executives from companies with global footprints that operate in Mexico.
The full report, “The Importance of Reliable Clean Energy and Infrastructure for Mexico: To Realize Its Potential for North American ‘Nearshoring,’” is available below.View Report