Chihuahua Positions Itself as a Premier Nearshoring Destination in Northern Mexico

In the era of nearshoring, Chihuahua is emerging as a top city for high-value investments in northern Mexico, leveraging its talent and quality of life to attract business.

Amid the growing trend of nearshoring, Chihuahua strives to establish itself as one of the most attractive cities for high-value investments in northern Mexico. Jorge Cruz Camberos, President of Economic Development of the State of Chihuahua (Desec), emphasized this vision on Wednesday, highlighting the city’s strategic location, competitive edge, and enhanced quality of life for its residents.

Located just 400 kilometers from the United States, Chihuahua sits at the heart of Mexico’s largest state. Over the past decade, it has climbed the competitiveness and quality of life ranks, thanks to a strategic alliance between the government and private sector to transform it into the best industrial family city.

Cruz Camberos attributed the city’s success to a model that unites different levels of government, the educational system, and private enterprises under a shared development vision. Over the last eight years, efforts have focused on improving household incomes, achieving a minimum household income of 23,000 pesos (approximately $1,370) per month, with a target of 83,000 pesos ($4,900).

“To attract competitive companies, we need to offer competitive salaries, which in turn requires us to be a competitive city,” Cruz Camberos told EFE. This development strategy has been consistently negotiated with every mayoral candidate over the past 50 years, resulting in sustained progress.

Rising Competitiveness and Quality of Life

In 2016, Chihuahua, with a population of less than one million, ranked 12th among the most competitive cities in Mexico. This year, it ranks sixth among major cities, alongside Mexico City, Monterrey, and Guadalajara. The city’s improved ranking is a testament to its strategic planning and collaborative efforts.

“Many people are unaware of Chihuahua’s quality of life. The city’s offerings often surprise visitors, which cater to individuals aged 35 to 40, providing good schools, safety, simple commutes, and excellent job opportunities,” Cruz Camberos explained. The city boasts over 120 export manufacturing companies, employs more than 120,000 industrial workers, and contributes nearly 20% of the state’s exports, making it a national leader.

Arturo Chretín Sáenz, director of Chihuahua Espectacular, highlighted the city’s robust business tourism infrastructure and well-planned urban design. Chihuahua offers a comprehensive hotel network catering to the middle class, providing excellent services for families and business travelers.

“Chihuahua is a vibrant city with excellent gastronomy, a historical center, museums, and a precious business community where all entrepreneurs work towards common goals. It’s a developing and competitive city,” Chretín stated.

Historical and Economic Context

Chihuahua’s rise as a business hub is rooted in its rich historical and economic context. As the largest state in Mexico, Chihuahua has a diverse economy that includes agriculture, mining, and manufacturing. Chihuahua, the state capital, has historically been a center of commerce and industry, attracting investments due to its strategic location near the U.S. border.

The North American Free Trade Agreement (NAFTA) and its successor, the United States-Mexico-Canada Agreement (USMCA), have significantly boosted Chihuahua’s economy by facilitating cross-border trade and investment. The state’s proximity to major U.S. markets and well-developed infrastructure make it an ideal location for nearshoring, a trend in which companies relocate closer to their primary markets to reduce costs and improve supply chain efficiency.

The current wave of nearshoring presents both opportunities and challenges for Chihuahua. On the one hand, the city can attract high-value investments and create jobs by offering a favorable business environment, skilled labor force, and strategic location. On the other hand, it must address potential challenges such as ensuring sustainable growth, maintaining competitiveness, and meeting the demands of a growing population.

Chihuahua’s strategy involves attracting foreign direct investment and fostering local entrepreneurship and innovation. The city’s educational institutions, such as the Autonomous University of Chihuahua, play a crucial role in providing a skilled workforce that meets the needs of modern industries.

Quality of Life as a Competitive Advantage

One of Chihuahua’s key selling points is its quality of life. The city offers a blend of modern amenities and cultural heritage, making it attractive for professionals and their families. Good schools, healthcare facilities, recreational options, and a low crime rate contribute to a high standard of living.

Moreover, the city’s efforts to improve infrastructure, such as transportation and public services, enhance its appeal to residents and businesses. The commitment to creating a safe, convenient, and enjoyable environment is central to Chihuahua’s vision of becoming a top nearshoring destination.

The success of Chihuahua’s development model is mainly due to the effective collaboration between the government and the private sector. This partnership has been instrumental in creating a business-friendly environment, attracting investments, and driving economic growth.

Government policies that support business development, such as tax incentives and streamlined regulations, complement the efforts of private enterprises to innovate and expand. This collaborative approach ensures the city’s growth is sustainable and inclusive, benefiting all stakeholders.

Looking Ahead: Future Prospects

As Chihuahua continues to position itself as a premier nearshoring destination, its leaders are focused on long-term sustainability and competitiveness. The city’s development plans include further enhancing its infrastructure, expanding educational opportunities, and fostering a culture of innovation.

The goal is to create an ecosystem where businesses can thrive, and residents enjoy a high quality of life. By leveraging its strategic location, skilled workforce, and collaborative spirit, Chihuahua aims to attract more high-value investments and become a model for other cities in Mexico and beyond.

Also read: Electricity Consumption Surge in Mexico Demands Urgent Energy Sector Investment

Chihuahua’s journey from a regional industrial center to a leading nearshoring destination in northern Mexico is a testament to its strategic planning, collaborative efforts, and commitment to quality of life. As the city continues to attract investments and create opportunities, it stands as a beacon of progress and innovation in the region.

With a clear vision for the future and a strong foundation built on partnership and competitiveness, Chihuahua is poised to achieve even greater success in the years to come.