Mexico Now Biggest Exporter to U.S.

New Census Bureau numbers show Mexico has supplanted China as the number one exporter.

After many years when China was the nation exporting themost to the U.S., Mexico has taken the top spot, indicating the continued growth and strength in the nearshoring movement.

New statistics just released from the U.S. Bureau of the Census show that in 2023 Mexico accounted for 15 percent of all the goods imported into the country. That topped China, which with a 13 percent share, ranked second and continued what has been an 8 percent share drop since 2018.Canada placed third, also confirming that U.S. importers are looking for sources closer to home in an age when political, natural and other factors have impacted the global supply chain.

This new ranking is one of several new statistics that point to the strength of the overall nearshoring movement, particularly as it pertains to Mexico. The Mexican Ministry of Economy recently reported that direct foreign investment in the country was up 30 percent last year, including$33 billion just in the third quarter of 2023. Also, 48 percent of investments from overseas companies came from new investors, those who had never done so previously. Many located or relocated their operations to Mexico. And industrial property demand in the country, according to the Mexican Association of Private Industrial Parks, is projected to grow by 80 percent this year. Manufacturing production now constitutes nearly 17 percent of Mexico’s GDP, the country’s National Institute of Statistics and Geography recently reported.

While the statistics from Mexico are certainly impressive it’s likely that growth in other Latin American economies is showing similar gains, all as nearshoring becomes a widespread business strategy for more and more companies in North America., the website that reported on these new developments, summed it up, saying, “Drastic change is underway, and there’s growth yet to be had. Just as in decades past the appeal of a vast international market led businesses to outsource to the farthest corners of the globe, those very same companies are now realizing the potential of bringing production closer to home.”

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