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Logistics growth in Mexico. (Warehouses, Amazon distribution centers, and Mercado libre)
Mexico is one of the most important logistic hubs in America. The growth of logistics in Mexico has been slow but steady and nowadays it has modern infrastructure to handle the needs of international trade.
As a country that has ten free trade agreements, Mexico has a flourishing industry in logistics with hundreds of jobs created to handle merchandise volume, cargo management, distribution, and storage.
These agreements involve 45 countries, and this provides Mexico with exclusive access to 60% of the world’s gross domestic product. According to KPMG Mexico offers a 21% cost advantage over the United States.
The proximity of the United States, and an internal market that keeps growing to make Mexico a wonderful opportunity for investors worldwide.
Imports and exports are handled by 2500 agencies and transport represent 1,162,121 million Mexican pesos of Mexico’s gross domestic product. Some of the goods and services with greater potential are:
- Construction of logistic corridors and distribution centers.
- Management and ICT for logistic corridors.
- Warehouse management equipment and software.
- Asset and vehicle tracking solutions.
- “Realtime” handheld bar code scanners.
- RFID related technology.
In Mexico, two giants of the e-commerce industry operate some of the most innovative and modern distribution centers in Latin America: Mercado Libre and Amazon.
Mercado Libre has operated in Latin America for about 20 years, while Amazon got to Mexico in 2015. They both have distribution centers that allow them to have faster and cheaper deliveries. These distribution centers are all over the country, but the largest are in the State of Mexico. Amazon has a large distribution center in Cuautitlán Izcalli where there is merchandise sold by them and by third parties.
Mercado Libre invested 300 million dollars in 2019 to expand its operations to compete with Amazon and has large distribution centers in different parts of the country.
Each year, Mexico handles almost 720 billion USD of international trade which is more than Brazil and Argentina combined. Without a doubt, Mexico is a promising market when it comes to logistics.
Lear more about 3PL Logistics services in Mexico here.
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