Banorte Chairman Carlos Hank González: Mexico to gain additional $168 billion in non-oil exports by companies relocating closer to the US
"We want Banorte to be the bank of nearshoring," said its chairman, Carlos Hank González , referring to the business practice of suppliers, manufacturers and other entities moving to establish more nimble supply networks closer to consumption centers.
NEW YORK, March 30, 2023 /PRNewswire/ -- Mexico is poised to gain potentially $168 billion more in non-oil exports over the next five years, thanks to companies moving factories closer to the United States to strengthen supply chains, according to Grupo Financiero Banorte, the largest Mexican-owned bank.
"We want Banorte to be the bank of nearshoring," said its chairman, Carlos Hank González, referring to the business practice of suppliers, manufacturers and other entities moving to establish more nimble supply networks closer to consumption centers.
Banorte recently released a major research study that said Mexico's unique geographic location, demographic advantages, economies of scale and lower costs make it a natural hub for nearshoring.
Banorte is betting the nearshoring boom will draw migration to the country's north from southern states and that likely will create more demand for mortgages and loans for small businesses, the chairman told Bloomberg after meeting with investors Tuesday in New York.
"We have the capacity – because we're a local bank – to support these investments," he said.
The predicted $168 billion in new exports from nearshoring over the next five years represents about 6.2% of non-oil exports in 2022.
He said the benefits can reach throughout Mexico, calling it "an exceptional opportunity, extending beyond the north or central regions and into the south, southeast and furthermost parts of the country."
Also, small and medium-sized companies must not be overlooked as they play a significant role in ensuring commercial success in nearshoring.
He said the bank plans to add 800 jobs in Mexico to take advantage of the nearshoring trend, with most of the hiring aimed at supporting those types of businesses.
Banorte said the industries most likely to register growth because of nearshoring include agricultural goods and livestock; chemicals and plastics; apparel and accessories; basic metals; machinery and equipment; and electric and electronics.
Banorte's "Zoom Nearshoring" report is part of the bank's new biannual research series on economic trends.
Website: carloshankgonzalez.com
Twitter: @CarlosHankG
Facebook: CarlosHankGonzalezBanorte
LinkedIn: carloshankgonzalez
Media contact
Francisco Rodríguez Daniel
Executive Director of Corporate Communication
[email protected]
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SOURCE Grupo Financiero Banorte
