Unlocking Potential: How Mexican Talent enhances cross-border logistics operations

Identifying the right talent at every production stage is crucial for nearshoring to reach its full potential in Mexico. Navigating the complexities of cross-border operations requires individuals adept at uncovering supply chain efficiencies, making nearshoring a valuable strategy. 

To gain deeper insights, we interviewed Roberto Icaza, Co-Founder, President, and COO of Rapido Solutions Group, an expert in sourcing nearshoring talent to address these complex challenges.

Overview of Mexico's Logistics Workforce

Mexico’s logistics workforce is rapidly expanding, driven by a 42% increase in the economically active population since 2005. This growth includes many individuals who are educated in international business and have improved their English proficiency, which makes them well-suited for logistics roles.

Companies entering Mexico collaborate with universities as opportunities grow to emphasize and prioritize specific skills and knowledge. This focus on specialization in particular technologies and processes enhances the quality of talent.

According to Co-Production International, Mexico's workforce is well-educated, abundant, and reliable. Annually, 855,731 engineers and technical students graduate in Mexico, producing about four times more graduates per capita than the United States.

Mexico boasts a rich talent pool for specialized carriers with over 4,000 medium and large trucking companies and numerous freight forwarders. However, these skills are not evenly distributed across regions, highlighting the need for strategic talent development in the long term.

Primary Challenges & Opportunities

Icaza highlighted some of the critical challenges and opportunities concerning logistics talent in Mexico: 

Challenges

• Lack of a Dynamic Freight Brokerage Culture: Unlike the U.S., where freight brokerages have evolved significantly, Mexico’s logistics sector is often characterized by traditional, family-owned companies. The recent entry of U.S. brokerages into Mexico underscores the urgent need for a dynamic, fast-paced working culture and specialized talent to support nearshoring.
• Skill Mismatch: The rapid advancement in digital and automated logistics systems has outpaced the current educational outputs, leading to a skills gap.
• Security Concerns: High cargo theft and infrastructure deficiencies pose significant challenges, potentially leading to burnout among logistics professionals.

Opportunities

• Sector Growth: Expanding industrial parks and increased nearshoring activities present vast opportunities, especially in regions like Bajío and Nuevo León. The demand for operational agility, bilingual communication, and cross-border compliance expertise is rising. With over 36.058 Billion USD in foreign direct investment flowing into Mexico in 2023 and a remarkable 2.2% rise in FDI compared to 2022, there is a growing need for problem solvers to manage complex, multi-party logistics operations. Below, you can see the division of FDI per sector in 2023. 

• In-Demand Skills:
  • Operational Agility: Expertise in cross-border compliance and bilingual communication is crucial due to the integrated nature of North American supply chains.
  • Managerial Skills: Skills in logistics planning and cross-border operations management are essential as nearshoring continues to expand.
  • Digital Proficiency: Proficiency in digital logistics management, supply chain software, and data analytics is increasingly vital. Even those without prior experience who can learn quickly are highly valued.

High-caliber talent to cover Nearshoring growth

The surge in nearshoring has amplified the demand for logistics professionals adept at navigating Mexican and international landscapes, increasing the need for entry-level logistics coordinators and advanced planners.

Icaza is particularly bullish on Mexico's talent pool, stating, “With a median age of 30 and an economically active population of 60 million, I foresee significant restructuring within the education sector and various industries. This evolution will create more educated and skilled professionals equipped to handle sophisticated logistics programs and emerging technologies.” 

Mexico’s geographical and cultural proximity to the U.S. makes it an ideal hub for connecting bilingual talent to the vast and fragmented supply chain networks. Mexico’s large, active economic population and low unemployment rate (below 3%) create a highly competitive labor market. With their complex and time-sensitive supply chains, industries such as automotive and electronics are driving this demand.

As nearshoring initiatives continue gaining traction in Mexico, the focus on developing a skilled logistics workforce becomes increasingly critical. Companies like Rapido Solutions Group and Nuvocargo are in charge of optimizing cross-border logistics, leveraging their deep understanding of the Mexican market and its transportation intricacies. 

By prioritizing talent development and streamlining operations, these companies are helping businesses navigate the complexities of nearshoring, ultimately enhancing efficiency and fostering growth in this strategic landscape.