Mexico’s Robotics and Automation Industry Rebounds with Nearshoring Surge

The sixth edition of Industrial Transformation Mexico (ITM) welcomed experts who confirmed the recovery of Mexico’s robotics and automation industry post-COVID-19. The revival is fueled by nearshoring, a trend reshaping the country’s industrial landscape and driving foreign investment.

Robotics Industry Bounces Back After COVID-19 Setbacks

At the Industrial Transformation Mexico (ITM) expo, industry leaders shared their optimism about the revival of the robotics and automation sector, which the COVID-19 pandemic had significantly disrupted. Before the pandemic, the industry was experiencing rapid growth. According to Xavier Quintero, manager of HTL Electronics México, “From 2016 to 2019, there was annual growth of 110%. Companies doubled the number of robots they implemented yearly, and automation expanded into more sectors.”

However, the pandemic hit hard, particularly in Mexico’s automotive industry, crucial in driving demand for robotics and automation technologies. “When the pandemic struck, there was a total halt, especially in the automotive sector, which is the main driver for us here in Mexico,” Quintero explained. The industry stood a standstill, forcing many businesses to halt automation efforts altogether.

However, the sector is now rebounding, and the phenomenon of nearshoring is playing a crucial role in this recovery. Nearshoring involves the relocation of supply chains closer to the end market. Companies seeking to avoid the logistical challenges posed by distant manufacturing hubs like Asia have increasingly favored this trend. Quintero noted, “After the pandemic, the benefits of nearshoring became clear to the robotics industry. Instead of sourcing inputs from Asia and machines from Italy, companies are now relying on local resources and expertise.”

Nearshoring Fuels Investment and Growth

Mexico’s strategic location and the growing nearshoring trend attract investment from global companies looking to expand their operations closer to the U.S. market. Fernando Vázquez, manager of mechatronics at Sumitomo México, echoed this sentiment, emphasizing how nearshoring is boosting automation in the country. With two decades of experience in the sector, Vázquez observed, “We see more companies coming to Guanajuato because it’s logistically well-positioned. Clusters are forming, and there is a wealth of engineering talent here.”

Guanajuato, the host state of ITM, has become a magnet for companies looking to invest in automation, thanks to its strategic location in central Mexico. The state has been developing industrial solid clusters, particularly in the automotive and manufacturing sectors, making it an attractive hub for businesses seeking to streamline their supply chains and reduce transportation costs.

Rubén Rodríguez, national business development manager at the Swiss company Staubli, also pointed out that European investment in automation technologies in Mexico and the U.S. is on the rise, thanks to the nearshoring trend. “The nearshoring phenomenon is increasing investment from Europe to North America, specifically in Mexico and the U.S., where new technologies are being implemented and developed,” Rodríguez stated.

Strengthening Trade Agreements for Continued Growth

While the industrial sector is experiencing growth, experts stressed the importance of maintaining strong trade relations between Mexico, the U.S., and Canada. Kevin Jones, vice president of sales at OnLogic, emphasized the growing demand for relocating operations to Mexico and highlighted his company’s commitment to investing resources in the country.

However, the upcoming U.S. presidential elections could bring uncertainty to trade policies. With the elections scheduled for November 5, Jones highlighted the need for continuity in the United States-Mexico-Canada Agreement (USMCA or T-MEC). “It’s important that the T-MEC agreement remains intact to ensure the smooth trade flow between our economies. Disrupting these trade policies would only stifle the industry,” Jones warned.

Jaron Bass, leader of advanced manufacturing at the International Trade Administration (ITA), also weighed in on the potential political impact. He reassured that regardless of whether the next U.S. president is Democrat Kamala Harris or Republican Donald Trump, Mexico’s economic significance for the U.S. is unlikely to change. “For the first time, we’re importing more manufacturing equipment from Mexico than from China—the scale is enormous,” Bass said, adding that Mexico’s increasingly skilled STEM workforce is an essential ingredient in the success of the bilateral trade relationship.

The consensus among industry leaders is clear: trade policies that promote collaboration between the U.S., Canada, and Mexico are essential for maintaining the momentum of nearshoring and ensuring the long-term growth of the robotics and automation industries.

A Changing Workforce and More Women in Tech

One of the more positive changes highlighted by the experts is the growing presence of women in Mexico’s robotics and automation industries. This shift marks a significant departure from 20 years ago when men dominated these fields. Today, women are making strides at every industry level, from engineering and technical roles to leadership positions.

Rubén Rodríguez of Staubli acknowledged this transformation, stating, “Unlike 20 years ago, we’re seeing more and more women involved in robotics and automation at all hierarchical levels.” This increase in female participation reflects broader changes in Mexico’s labor force, as the country invests in STEM education and promotes diversity in tech fields.

The influx of new talent—both male and female—is helping to drive innovation and growth in Mexico’s automation sector. With more engineers and specialists entering the industry, Mexico is positioning itself as a leader in robotics and automation, especially in the context of nearshoring.

The rise of women in the sector also indicates the industry’s increasing inclusivity, creating new opportunities for those traditionally underrepresented in tech fields. This trend is expected to continue as more companies recognize the value of diversity in driving innovation and fostering a dynamic workforce.

Mexico’s Path to Industrial Transformation

The nearshoring boom is reshaping Mexico’s robotics and automation industry and positioning the country as a critical player in the global supply chain. Mexico can capitalize on this trend with its strategic location, skilled workforce, and strong trade relationships.

As the world shifts towards more localized supply chains, Mexico benefits from the influx of companies seeking to reduce their reliance on distant manufacturing hubs. The growth in automation technologies is a testament to the country’s ability to adapt to changing global dynamics and meet the demands of the modern industrial landscape.

Mexico’s robotics and automation sector has come a long way since its early days, and the recovery post-COVID-19 shows the industry’s resilience. The collaboration between global companies, local talent, and government initiatives is paving the way for Mexico to become a hub of innovation in robotics and automation.

Also read: Didi Aims to Transform Mexico’s Electric Mobility Landscape

The future looks bright for Mexico’s industrial sector as nearshoring fuels growth and investment. With the right policies and continued investment in talent and technology, Mexico is poised to become a global robotics and automation leader, driving innovation and economic growth for years to come.