Mexico stands at the center of a major reconfiguration of global supply chains. As companies reassess where to manufacture and source their products, the country is uniquely positioned to attract investment and expand its role within the integrated supply chains that increasingly define the North American economic landscape. Few countries combine Mexico’s advantages: geographic proximity to the United States, a well-developed supplier base across key industries like automotive, electronics, aerospace, and consumer goods, a competitive and well-trained labor force, and more than a dozen trade agreements that connect it to global markets. These strengths give Mexico the potential to become one of the most strategic logistics and manufacturing hubs in the world.
Yet one structural obstacle remains: logistics costs in Mexico continue to exceed those of more advanced economies, constraining competitiveness at a moment when agility and efficiency are essential. Evidence from the National Logistics KPI Study—developed by #SoyLogístico Asociación, LDM – Empowering Your Supply Chain, and EGADE Business School of Tecnologico de Monterrey—shows that logistics costs in Mexico represent a notably higher share of company sales compared to companies in advanced economies.
Indeed, the study shows that total logistics costs in Mexico average around 17% of sales but can rise to 38–45% in sectors such as retail and logistics services. Other key industries—including pharmaceuticals, automotive, and manufacturing—tend to operate at somewhat lower levels, although costs can still be significant, ranging from 8% to 25% depending on supply chain complexity and service requirements. The food sector exhibits the widest dispersion, with logistics costs ranging from single-digit levels to more than half of sales in certain cases.
By contrast, benchmarks from advanced economies such as the United States, Japan and Germany show that while logistics costs also vary by sector, they typically fall within a narrower and lower range, most often between 8% and 20% of sales. Estimates from sources such as the World Bank, the Council of Supply Chain Management Professionals, and the OECD consistently point to stronger infrastructure, higher levels of digitalization, and better coordination across supply chain actors as key factors behind these lower cost structures.
Fuel and energy prices have remained relatively stable, but several deeper structural issues continue to elevate logistics costs in Mexico. Among them are persistent infrastructure bottlenecks, security challenges in key regions, fragmented coordination among logistics actors, limited multimodal connectivity, and slow digital adoption across critical supply chain processes. These obstacles raise systemic costs and reduce the speed, predictability, and reliability that global supply chains now demand.
Importantly, there are also signs of progress on the public policy front. In recent years, the Mexican government has promoted strategic infrastructure projects aimed at strengthening logistics connectivity and regional integration. Initiatives such as the Isthmus of Tehuantepec Interoceanic Corridor seek to enhance multimodal connectivity between the Pacific and Gulf coasts, while the expansion and modernization of the Port of Veracruz aim to increase capacity and improve efficiency at one of the country’s most important maritime gateways. While these efforts are still in different stages of consolidation, they represent meaningful steps toward reducing bottlenecks, improving regional balance, and lowering long-term logistics costs if complemented by effective coordination, security, and private-sector investment.
Despite these challenges, the study mentioned above points to encouraging progress. Firms across major sectors, like manufacturing, automotive and retail, report improvements in service levels, forecast accuracy, and the use of technology to enhance planning and visibility. These advancements signal that the private sector is moving decisively to modernize logistics capabilities.
The upcoming 2026 review of the USMCA elevates the importance of addressing these gaps. The review will help shape the next phase of North American economic integration, and Mexico’s ability to demonstrate competitive, resilient, and efficient supply chains will influence both investment flows and the depth of trilateral cooperation. Strengthening transportation infrastructure, enhancing security along critical freight corridors, streamlining customs and border operations, and accelerating logistics digitalization are no longer optional: they are essential pillars for reinforcing Mexico’s position within the regional framework.
Nearshoring represents a once-in-a-generation opportunity, and the above considerations escalates the urgency of closing Mexico’s logistics cost and efficiency gap. If the country can align public policy with private-sector innovation—and fully leverage its geographic, industrial, and human-capital advantages—Mexico can transform today’s momentum into long-term competitive advantage and solidify its place at the center of North America’s next stage of economic growth and integration.
Published originally in Latin Trade.
Author
Marketing and Business Intelligence
Director of the Global Executive MBA