Mexican bank Banorte to create 800 new jobs in Mexico due to nearshoring boom in the country

The president of Grupo Financiero Banorte, Carlos Hank González, has assured that the entity will create 800 new jobs to take advantage of the trend known as ‘nearshoring’, which will lead Mexico to become a destination for factories seeking to relocate from distant countries to be closer to the United States.

These new workers will be added to the more than 30,000 that the bank already has in Mexico, and will be distributed in various sections, such as marketing or customer service, with most of the new hires in the wholesale division to offer services to small and medium-sized companies.

In an interview, Hank defined the offshoring of companies as an «extraordinary» opportunity, mainly for the north of Mexico. From the entity, they are confident that the rise of this trend will drive a wave of migration to the north of the country, which will create demand for mortgages and loans for small businesses. «As a local bank, we have the capacity to support these investments,» he added.

Banorte is betting that the rise of ‘nearshoring’ or offshoring will drive a wave of migration to the north of the country from southern states, which will create demand for mortgages and small business loans, Hank Gonzalez said after meeting with investors on Tuesday.

According to a report published this month, the bank estimates that offshoring will generate US$168 billion (about €154 billion) in new exports over the next five years, equivalent to 6.2% of Mexico’s non-oil exports in 2022. Still, the country must improve its public infrastructure, provide investment incentives and integrate regions not yet in the supply chain to serve foreign markets.

Fund managers are already benefiting from this trend. Optimism about money flowing into the country as companies move in is, in part, reason A why the Mexican peso has soared about 7% against the dollar so far this year, more than any of its 16 major peers tracked by Bloomberg.

Among the new investments that are starting to arrive, Tesla announced that it will build a new plant. Meanwhile, BMW announced last month that it would invest 800 million euros in its San Luis Potosí plant.