Over the first 10 months of 2022, Mexico exported 20% more products to the United States than it did during the same period the year before. The global trend towards regionalization is lifting the entire Mexican industrial sector, but for the chemical industry in particular, 2022 was a year of nearshoring-driven growth.
The persistent shortage of raw materials that constrained the industry over the past several years, however, remains a challenge. Feedstock insufficiencies were exacerbated by continuing logistics challenges and burdensome government regulation. The proposed electricity reform, which will raise energy costs, and reform to the General Health Law, which will ban vital crop protection chemicals, remain an ongoing threat.
The trend observed across the industry has been a focus on ensuring adaptability and flexibility through strengthened processes. Companies invested in the incorporation of digital technologies, the regionalization and diversification of supply chains, and investment in improved energy efficiency and resource management. 2022 was a year of transition, during which companies all along the industry value chain implemented new systems in response to the difficult lessons of the previous two years. The Mexican chemical industry of 2023 is technologically advanced and operates in a progressively more sustainable manner. After the intensive investment in operational agility implemented over the past year, the Mexican chemical industry is prepared to jump upon the new investment that will continue to flow into Mexico as nearshoring gains momentum.