The U.S.‑Mexico Border Boom

The roots of cross‑border manufacturing can be traced back to the 1960s with the establishment of the Maquiladora Program. It incentivized foreign companies to set up manufacturing facilities in Mexico, providing employment for agricultural migrant workers. The program’s evolution into the IMMEX program further expanded manufacturing opportunities and fueled trade growth that culminated into the signing of the North American Free Trade Agreement (NAFTA) in 1994 between Canada, the United States and Mexico. Regional trade experienced a remarkable surge during NAFTA’s first two decades, from roughly $290 billion in 1993 to more than $1.1 trillion in 2016.

Today, nearly 90% of today’s maquiladora (or IMMEX) facilities are concentrated along the U.S.‑Mexico border, with the IMMEX industry employing about 1.3 million workers, accounting for approximately 15% of Mexico’s manufacturing jobs. Every minute, nearly $1.5 million dollars worth of goods traverse the U.S.‑Mexico border (2022).

Mexico’s role in North America is evolving, shifting away from being solely a source of low‑cost manufacturing inputs. The country’s skilled workforce, robust supply chain infrastructure, and strategic proximity to its largest trading partner, the United States, have propelled Mexico to a more prominent position with the region’s manufacturing landscape.