📊Executive Summary

Mexico's industrial output has significantly underperformed, with a year-on-year contraction of 3.6% in August 2025, raising concerns about the country's economic resilience and its ability to attract nearshoring investments. This downturn, affecting major sectors including manufacturing, construction, and mining, is attributed to persistent economic uncertainty, low investment levels, and reduced demand. The automotive and electronics sectors, in particular, may face challenges as companies like Nemak S.A.B. de C.V. struggle with these economic headwinds. The article highlights the need for procurement teams to closely monitor the evolving situation in Mexico, especially regarding potential impacts on supply chains and sourcing strategies....