Monterrey: A Mexico Manufacturing Location on the Rise
12.01.25Article Overview: States near the border of Mexico, namely Baja California, Chihuahua, Sonora, and Coahuila, are a thriving hub of manufacturing activity. However, over the years, another metropolitan area has begun to emerge as a key destination: Monterrey.
Monterrey attracts billions of dollars in foreign direct investment (FDI) each year and serves as a thriving area of opportunity when manufacturing in Mexico. In 2024, it was reported Mexico received a record $31 billion in FDI, which was a 7% year-over-year increase from the year before.
The majority ($30 billion) was reinvestment from manufacturing companies already situated in Monterrey. However, it’s not only the automotive sector that’s doubling down on expansion into Monterrey.
Aerospace manufacturing and electronics manufacturing, in particular, continue to explore FDI opportunities for production.
What’s Driving Growth
As of 2025, Nuevo Leon was officially named the leading state in Mexico for industrial growth and employment. Monterrey’s unprecedented FDI growth is encouraging to current manufacturers, as well as giving new companies confidence in:
- A strong business environment with a reliable local supply chain
- Economic stability across multiple sectors, including automotive, aerospace, and electronics manufacturing, among others
- Competitive advantages, such as transportation flexibility and access to a highly skilled workforce
Nuevo Leon generated more than 13,000 new formal jobs in September 2024 alone, which contributed to the 45,000 total jobs that were created between January and September.
This nearshore manufacturing growth is supported by and reflects a city that’s becoming a hub of activity in other areas as well, including hospitality and entertainment, attracting young, qualified employees to establish roots in Monterrey.
Considering Monterrey as a Manufacturing Destination
With the manufacturing competition along the U.S./Mexico border, Monterrey provides an alternative to consider when securing industrial real estate, highly skilled talent, and easy accessibility to transportation hubs.
Each industrial region has its own benefits, and a Mexico business shelter, such as IVEMSA, can put together a site selection matrix to compare viable areas and buildings, allowing manufacturers to see the benefits and potential drawbacks side by side.
This service includes:
- Gathering information about which other relevant Mexico manufacturing companies already have a presence in the targeted locations
- Identifying where there will be ample opportunity for hiring labor and securing well-equipped facilities
- Eliminating areas that are oversaturated and more costly
- Mapping out the city and including information on available buildings, utilities, and vendors
Regardless of whether Monterrey is on your short list of sites, simplify the selection process by working with IVEMSA to secure an industrial lease based on your company’s manufacturing needs and goals.
Let us help you get started with your next steps. Contact our team today.
Sources:
https://finance.yahoo.com/news/foreign-direct-investment-hits-record-110000091.html;