Mexico FDI ranking jumps in 2026 as nearshoring boosts investment

Kearney noted that both Mexico and Brazil posted notable gains, driven in part by reforms aimed at improving ease of doing business. In Mexico’s case, a new law aimed at reducing bureaucratic hurdles and streamlining government services has helped improve investor sentiment.

More broadly, investors are prioritizing technological and innovation capabilities, industrial policy alignment — cited as critical by 84% of executives, and supply chain resilience and diversification.

At the same time, 88% of surveyed executives said they plan to increase foreign direct investment over the next three years, underscoring continued appetite for global expansion despite risks.

Mexico solidifies role as North American production hub

For freight markets, Mexico’s climb reinforces its position as a central node in North American manufacturing and cross-border logistics.

Rising investor confidence typically translates into:

• Increased industrial construction and plant expansions
• Higher cross-border truck and rail volumes
• Growing demand for customs brokerage, warehousing and drayage capacity

Mexico’s No. 19 ranking places it firmly among emerging markets benefiting from supply chain realignment, alongside countries like Thailand and Malaysia that are also gaining from diversification trends.

Morgan Stanley: Domestic investment is the next catalyst

While nearshoring remains a key driver, a separate report from Morgan Stanley argues that Mexico’s long-term investment outlook hinges increasingly on domestic economic reforms and private investment growth.

In a report released on Tuesday, “Mexico’s Domestic Opportunity”  — the firm noted that Mexico’s export engine remains strong, with manufacturing exports to the U.S. rising by $150 billion since 2021 to reach $535 billion in 2025.

However, the report highlights a critical shift:

“The investment case hinges much more on the new administration’s ability to reinvigorate domestic growth and particularly private investment.”

Morgan Stanley pointed to several key dynamics:

• Exports remain robust, especially in electronics and machinery
• Domestic investment has lagged, declining about 8% in 2025
• Policy uncertainty and institutional reforms have weighed on business confidence

To address this, Mexico’s government has launched “Plan Mexico,” which aims to:

• Raise investment to 28% of GDP (from ~22%)
• Expand public-private partnerships and infrastructure spending
• Create 1.5 million jobs in manufacturing and strategic sectors

USMCA review looms as key catalyst

Both Kearney and Morgan Stanley highlight the upcoming 2026 USMCA review as a pivotal moment for investment flows.

Clarity around rules of origin, tariffs and critical minerals could unlock delayed investments and further accelerate nearshoring into Mexico, according to Morgan Stanley.

For logistics providers, that could mean a new wave of factory announcements and supplier relocations, increased border congestion and capacity constraints expanded need for cross-border compliance and customs expertise.

Risks remain despite momentum

Despite the gains, investors continue to flag risks that could affect Mexico’s trajectory, including:

• Rising geopolitical tensions (top global concern)
• Trade policy uncertainty and tariffs
• Domestic regulatory and institutional changes

Kearney’s survey found nearly 90% of investors see at least moderate risk from competing industrial policies across countries.

Mexico’s rise in the FDI rankings underscores a structural shift in global supply chains toward regionalization and nearshoring.

For carriers, brokers and shippers, it could mean sustained growth in U.S.–Mexico cross-border freight volumes, increased importance of Laredo, Texas, and other border gateways, and greater exposure to policy-driven volatility, including tariffs and regulatory changes.