2026/27 Investment Radar for Mexico, Central America & the Caribbean
Video Language
Is the LATAM region poised to become the next global hub for advanced manufacturing and strategic energy, or will global volatility stall its momentum? In this episode, Mariana Soko (Asst. VP of Research - LATAM Chemical Processing), Chester Conway (Asst. VP of Research - LATAM Alternative Fuels) and Ximena Juarez (Asst. VP of Research - LATAM Pharmaceutical and Biotech) explore the business ecosystem across Mexico, Central America, and the Caribbean for 2026 and 2027. Against a backdrop of nearshoring consolidation and the realignment of global value chains, this episode unpacks the critical drivers of regional competitiveness.
Mariana Soko (00:00):
Welcome. I'm Mariana Soko from the office in Córdoba, Argentina. I've been with Industrial Info Resources for 20 years, and I specialize in the chemical processing industry. In our meeting today, we'll analyze the trends of the industrial sectors we cover in the Mexico, Central America and Caribbean region, focusing mainly on nearshoring, automation and artificial intelligence, and ESG criteria, which are redefining the industrial map.
In today's episode, I'm joined by Chester Conway, a specialist in the region for the alternative fuels industry, and Ximena Juárez, a specialist in the pharmaceutical and biotechnology industry, as a framework for analyzing the topics. For our meeting today, we'll discuss some aspects that Industrial Info observes regarding the investment landscape in Mexico, Central America, and the Caribbean for the 2026 to 2027 period.
First, we observe that growth in the region is not homogeneous. On the contrary, there is a strong concentration of investments in Mexico. It also occurs specifically in some countries and industries, but Mexico is positioned as the main protagonist of the region — it's an industrial hub, right, accounting for more than 75% of the projects expected to begin execution in the period I mentioned a moment ago, which means more than $70 billion in investments. Far behind, but still with a relevant share, we see the Dominican Republic, followed by Panama and Costa Rica, where around 16% of investments are concentrated. This reflects, as I was saying before, a region where opportunities are clearly concentrated, and Mexico is setting the pace.
Chester Conway (02:10):
Exactly. And to gauge that pace, you mentioned, Mariana, it's key to see how that capital is distributed across the sectors we monitor. Of the 12 industrial sectors covered by Industrial Info Resources in this region — electric power today leads the board, accounting for more than 30% of total investments. Manufacturing follows closely behind at 19%, while oil and gas and chemical processing maintain solid relevance at 13% and 12%, respectively. These four industries account for more than 75% of the region's total investments, meaning these industries will set the pulse for the projects being executed.
In addition to the three trends impacting the pace and direction of investments as we move forward in our meeting, we also want to analyze the current global geopolitical scenario and Mexico's National Development Plan, as well as other factors affecting investments in the different industries in the region.
Mariana Soko (02:59):
Of our interest today. Well, if we talk about nearshoring, we can say it's one of the most visible drivers globally. But what do we see in the region, Chester?
Chester Conway (03:09):
And what you mentioned, Mariana, is very accurate, because nearshoring is redefining the location of industrial production, especially in Mexico. What we see is a shift of production capacities closer to consumer markets, primarily the United States. In that sense, and continuing with Mexico, the metals and minerals industry has strengthened regional manufacturing integration and sustained the demand for steel. We see the case of companies like Ternium that have expansion plans, such as in their industrial complex in Pesquería, which would allow them to meet the growing demand linked to relocation. In this way, however, this momentum faces a challenge — US tariffs on steel and aluminum, which generate competitive pressures and some commercial uncertainty. In summary, nearshoring opens up opportunities, but it also exposes vulnerabilities to external policies.
Mariana Soko (04:02):
Ximena, could it be that something similar is happening in other industries that we can highlight?
Ximena Juárez (04:09):
Yes, indeed. In the case of the manufacturing industry, we've been developing this aspect in previous episodes and observing the evolution of the Mexico–Central America region, which developed from a simple logistics strategy to becoming a true smart industrial ecosystem, where Mexico stands out for having consolidated itself as the engine of advanced manufacturing in North America, while Central America provides high-value technological and logistical support.
Mariana Soko (04:38):
Then what impact do we see regarding this trend in the pharmaceutical industry?
Ximena Juárez (04:44):
Well, it's another sector where this trend is strongly evident, because in the pharmaceutical industry, nearshoring is reconfiguring supply chains in Mexico, driven by the need to reduce dependence on imports, especially pharmaceutical active ingredients coming mostly from Asia. And this opens the door to greater local production and investments in research and development, although it also poses the challenge of accelerating government plans to produce critical supplies internally.
Mariana Soko (05:13):
And besides Mexico, is there any other country in the area where the impact of this vector stands out?
Ximena Juárez (05:19):
Yes, definitely Costa Rica, which has consolidated itself as a leader thanks to subsidiary policies that have attracted plants from pharmaceutical multinationals. So that ecosystem favors nearshoring and allows companies to offset risks arising from geopolitical and tariff conflicts, as well as logistical ones. So, in conclusion, nearshoring in the pharmaceutical industry not only strengthens regional resilience, but also opens a path toward greater innovation and production autonomy.
Mariana Soko (05:43):
We can say then, Ximena, that nearshoring is not just an industrial phenomenon, but a complete reconfiguration of the production ecosystem.
Ximena Juárez (05:53):
That's right. Well, now moving on to our second aspect to analyze — we want to look at the impact of automation in the region, and we think it's important to clarify that while it's a trend that's generating investments in all industries, it has a greater impact on two of them: food and beverages, and industrial manufacturing. If we start by talking about the food and beverage sector, we see a growing focus on automation and modernization initiatives based on ESG policy criteria. These reflect a strategy that combines capacity expansion, operational efficiency and sustainability, marking growth in the Industry 4.0 market, with key technologies including robotics and artificial intelligence. In this case, I'd like to mention the Pilgrim's Pride project, which is applying these types of investments at its plant in Durango.
Mariana Soko (06:48):
Just — what do we see happening in the manufacturing sector?
Chester Conway (06:54):
Well, the industrial manufacturing sector in the region is undergoing a transformation driven by Logistics 4.0, which boosts the speed and interconnectivity of operations. A clear example of this is the recently inaugurated Interoceanic Corridor of the Isthmus of Tehuantepec, designed as a smart bridge to connect the Pacific and Atlantic Oceans at the narrowest part of the country. This megaproject seeks to position the Mexican southeast as a global logistics hub, facilitating trade between Asia, America, and Europe, becoming an alternative to the Panama Canal. This corridor is bringing in investments from which industrial hubs will be established, attracting companies from various manufacturing sectors such as automotive, chemicals, pharmaceuticals, among others. We also see other smart logistics hubs emerging, such as state-of-the-art dry ports that use artificial intelligence to optimize customs management, accelerating the flow of goods toward Mexico's northern border.
Mariana Soko (07:49):
And I understand that in the manufacturing industry, the areas of logistics and distribution have a major impact with automation, right?
Chester Conway (07:54):
That's right. There's a strong automation of distribution centers, with the massive implementation of autonomous robots and the use of artificial intelligence in countries like Mexico and Panama, which allows for a significant improvement in demand forecasting accuracy. So the logistical and digital infrastructure accompanies this transformation with a transition toward Logistics 4.0, with a sustainable and therefore inherently electric focus. In that sense, there are distribution centers, for example, in Monterrey and Mexico City, that operate under net-zero models, using solar microgrids and battery storage systems to support heavy transport fleets.
Mariana Soko (08:34):
So we see how automation and ESG are closely linked. Ximena, what can you tell us about the impact this trend is having on data centers?
Ximena Juárez (08:40):
With data centers, a strengthening of digital sovereignty is evident through their hyperscale expansion into regions of Mexico, such as the Bajío and Hidalgo, which supply the so-called smart factories with real-time artificial intelligence. This evolution is complemented by the reinforcement of the redundancy network, highlighting a new subsea connectivity between Panama and Yucatán that guarantees greater security in the flow of information.
Chester Conway (09:08):
And another contribution I'd like to make about what's happening with this trend is in the automotive sector, specifically in terms of innovation, as the structural change is developing towards a concept of "manufacturing intelligence." This implies an unprecedented expansion of automotive design and engineering centers in states like Jalisco and Querétaro, which positions Mexico as an assembly and cutting-edge technological development hub.
Mariana Soko (09:41):
Well, as we see, automation is ceasing to be a competitive advantage and is becoming an operational necessity — something similar to what is happening with the application of artificial intelligence, since the two go very much hand in hand.
Chester Conway (09:59):
Right, that's right. Now we are going to introduce the ESG criteria, and it's important to point out that the adoption of this trend is not homogeneous, but rather presents different nuances in each sector. And we're going to review its impact on different industries, starting with you, Chester.
Chester Conway (10:15):
Right. Well, and we're going to start with the electric power sector. The environmental component is a clear driver of investment, especially in renewable energies, with a predominance of solar generation in this region. Almost all of the new installed capacity is of renewable origin — that is, solar, wind and hydroelectric — consolidating ESG policies as the main driver of the sector. This evolution transcends clean generation towards efficient integration. Public tenders and power purchase agreements already incorporate energy storage requirements to gain resilience. Countries like the Dominican Republic, Panama, Honduras and Guatemala add more than four gigawatts in processes of this type. However, the limited transmission and distribution capacity represents a technical challenge that forces governments to review their transition timelines.
In contrast, sectors such as oil and gas show a limited incidence of ESG criteria in their strategic decisions. Meanwhile, in the field of alternative fuels, the pressure to decarbonize has not yet translated into massive investments, due to the lack of clear regulatory frameworks, high costs and incipient demand. One example is the Ciudad Dorada biorefinery project in Panama, which has had to scale back.
Mariana Soko (11:28):
Now, focusing on the chemical processing industry, it continues to move towards sustainable models. Major investments in the region are mainly oriented toward green hydrogen and clean energy, and at Industrial Info we recorded more than $2 billion planned in green hydrogen projects, and almost the entire amount is concentrated in Mexico alone. In this country, among the major investments, the Mexican project in Sinaloa being carried out by Transition Industries stands out. This project requires $800 billion in investments.
In the rest of the region we're analyzing today — Central America and the Caribbean — green hydrogen, or power-to-X, is also a trend driving the largest amount of investment, and we're seeing $75 billion in projects, with Costa Rica as the leader.
Ximena Juárez (12:20):
Well, and if we look at productive transformation industries like paper pulp, sustainability is gaining relevance through the use of recycled materials and operational efficiency. In food and beverages, companies are mostly investing in adopting forms of clean energy. The Honduran Sugar Company project in San Pedro Sula is a clear example, with more than $60 million destined to produce electricity from sugarcane bagasse. Many companies throughout the region are leaning towards solar energy, and Mexico leads, with more than $120 million planned in ESG investments, followed by Honduras, Costa Rica and Guatemala.
And regarding the pharmaceutical industry, it has been implementing ESG policies mainly to achieve the goal of reducing its carbon footprint, and the use of renewable energy is mostly identified, where the adoption of photovoltaic panels is the most frequent choice, but also production equipment with more efficient technologies that contribute to these goals.
And finally, I'm going to refer to the manufacturing and automotive industry, as it shows the greatest consolidation for 2026. Sustainability is a critical operational requirement to access tariff benefits, such as under the USMCA. This materializes a concept we had already mentioned — zero-emission manufacturing — and in that sense, extensive use is made, for example, of green hydrogen within the steel industry applied to the automotive industry, as well as data centers supplied by renewable matrices and logistics with electrified fleets. So with this scenario, ESG policy stops being a differentiator and becomes a mandatory condition for participating in global value chains.
Chester Conway (14:05):
Well, having already seen the vectors that drive industrial investments and set trends, we must mention that today we have a global context that is heavily influenced by the conflict in the Middle East, in addition to global energy tensions and instability in countries like Venezuela and Cuba. And this also has a cross-cutting impact across all industries. We see volatility in energy and raw material prices, which increases operating costs in intensive sectors such as oil and gas, oil refining, chemical processing, and metals and minerals. This results in more expensive financing, and may also have an impact by causing delays in investment decision-making, especially in large-scale projects.
Mariana Soko (14:50):
Right. And in parallel, countries with high energy dependence, like Cuba, are going through structural crises that affect the energy and production industries. While Venezuela, despite its potential for reactivation, especially in the oil refining sector, is repositioning itself as one of the world's leading crude oil exporters, but remains very limited by internal instability. Moving towards the food and beverage, pulp and paper, and manufacturing sectors, the impact there translates into pressure on logistics and input costs, affecting margins and the pace of expansion.
To conclude, I'd like to mention that given this outlook, the global context is driving companies to adopt more cautious strategies, prioritizing efficiency, supply diversification and risk management, in an environment characterized by greater uncertainty.
Chester Conway (15:47):
Right? Yes, yes, of course. At this time, we believe it's important to highlight the role of the National Development Plan in Mexico, and to emphasize how the plan has helped the country position itself, as we mentioned earlier, as an engine for investment and industrial dynamics. And the plan is structured around three key pillars — isn't that right, Chester?
Chester Conway (16:04):
Indeed. The first of the pillars is the energy sector, under the leadership of the CFE. The expansion in power generation and distribution is fundamental to enabling growth in manufacturing, chemical processing and data centers. The next pillar is about hydrocarbons and refining, where the strengthening of Pemex and the pursuit of energy self-sufficiency are prioritized. Although this boosts the value chain, it maintains a limited private participation scheme and a high state dependency. And finally, there's the logistics infrastructure — strategic projects like the Isthmus of Tehuantepec corridor aim to improve connectivity, to boost the automotive, food and manufacturing sectors.
Mariana Soko (16:50):
So from what you're saying, Chester, while the plan drives modernization and industrial integration, its real success remains subject to structural challenges and efficiency in the execution of those projects.
Chester Conway (17:02):
Yes, especially in the energy sector, with significant investments in generation, transmission and distribution, which enables the growth of other industries. And there are also advances in logistics infrastructure, which improve connectivity and boost sectors such as manufacturing and automotive. So ultimately, the National Development Plan functions as a major enabler of industrial growth.
Mariana Soko (17:24):
Exactly. To close our meeting today, do you think we should mention the highlights and what we believe will define industries in the coming years?
Chester Conway (17:29):
Yes. In general, the ability to sustain investments in infrastructure, especially energy, as this is a primary sector — by this I mean it acts as an engine that drives the rest of the industries and the trends that run through them.
Ximena Juárez (17:47):
Yes, the ability of companies to adapt to a more demanding and changing environment is important. As we've mentioned, we see an industry in transformation, driven by new vectors, but at the same time conditioned by a complex global context.
Mariana Soko (18:04):
Excellent. Thank you very much, Ximena and Chester, for your contributions. This concludes our analysis. We ask that if you wish to delve deeper into any of the topics we've covered today, please don't hesitate to contact us by email or at the phone number shown on the screen. We thank you for your time, and hope this information is valuable to support your decisions and business strategies at an international level. Thank you for joining us, and until the next edition of Navigating the Currents of Change.
Welcome. I'm Mariana Soko from the office in Córdoba, Argentina. I've been with Industrial Info Resources for 20 years, and I specialize in the chemical processing industry. In our meeting today, we'll analyze the trends of the industrial sectors we cover in the Mexico, Central America and Caribbean region, focusing mainly on nearshoring, automation and artificial intelligence, and ESG criteria, which are redefining the industrial map.
In today's episode, I'm joined by Chester Conway, a specialist in the region for the alternative fuels industry, and Ximena Juárez, a specialist in the pharmaceutical and biotechnology industry, as a framework for analyzing the topics. For our meeting today, we'll discuss some aspects that Industrial Info observes regarding the investment landscape in Mexico, Central America, and the Caribbean for the 2026 to 2027 period.
First, we observe that growth in the region is not homogeneous. On the contrary, there is a strong concentration of investments in Mexico. It also occurs specifically in some countries and industries, but Mexico is positioned as the main protagonist of the region — it's an industrial hub, right, accounting for more than 75% of the projects expected to begin execution in the period I mentioned a moment ago, which means more than $70 billion in investments. Far behind, but still with a relevant share, we see the Dominican Republic, followed by Panama and Costa Rica, where around 16% of investments are concentrated. This reflects, as I was saying before, a region where opportunities are clearly concentrated, and Mexico is setting the pace.
Chester Conway (02:10):
Exactly. And to gauge that pace, you mentioned, Mariana, it's key to see how that capital is distributed across the sectors we monitor. Of the 12 industrial sectors covered by Industrial Info Resources in this region — electric power today leads the board, accounting for more than 30% of total investments. Manufacturing follows closely behind at 19%, while oil and gas and chemical processing maintain solid relevance at 13% and 12%, respectively. These four industries account for more than 75% of the region's total investments, meaning these industries will set the pulse for the projects being executed.
In addition to the three trends impacting the pace and direction of investments as we move forward in our meeting, we also want to analyze the current global geopolitical scenario and Mexico's National Development Plan, as well as other factors affecting investments in the different industries in the region.
Mariana Soko (02:59):
Of our interest today. Well, if we talk about nearshoring, we can say it's one of the most visible drivers globally. But what do we see in the region, Chester?
Chester Conway (03:09):
And what you mentioned, Mariana, is very accurate, because nearshoring is redefining the location of industrial production, especially in Mexico. What we see is a shift of production capacities closer to consumer markets, primarily the United States. In that sense, and continuing with Mexico, the metals and minerals industry has strengthened regional manufacturing integration and sustained the demand for steel. We see the case of companies like Ternium that have expansion plans, such as in their industrial complex in Pesquería, which would allow them to meet the growing demand linked to relocation. In this way, however, this momentum faces a challenge — US tariffs on steel and aluminum, which generate competitive pressures and some commercial uncertainty. In summary, nearshoring opens up opportunities, but it also exposes vulnerabilities to external policies.
Mariana Soko (04:02):
Ximena, could it be that something similar is happening in other industries that we can highlight?
Ximena Juárez (04:09):
Yes, indeed. In the case of the manufacturing industry, we've been developing this aspect in previous episodes and observing the evolution of the Mexico–Central America region, which developed from a simple logistics strategy to becoming a true smart industrial ecosystem, where Mexico stands out for having consolidated itself as the engine of advanced manufacturing in North America, while Central America provides high-value technological and logistical support.
Mariana Soko (04:38):
Then what impact do we see regarding this trend in the pharmaceutical industry?
Ximena Juárez (04:44):
Well, it's another sector where this trend is strongly evident, because in the pharmaceutical industry, nearshoring is reconfiguring supply chains in Mexico, driven by the need to reduce dependence on imports, especially pharmaceutical active ingredients coming mostly from Asia. And this opens the door to greater local production and investments in research and development, although it also poses the challenge of accelerating government plans to produce critical supplies internally.
Mariana Soko (05:13):
And besides Mexico, is there any other country in the area where the impact of this vector stands out?
Ximena Juárez (05:19):
Yes, definitely Costa Rica, which has consolidated itself as a leader thanks to subsidiary policies that have attracted plants from pharmaceutical multinationals. So that ecosystem favors nearshoring and allows companies to offset risks arising from geopolitical and tariff conflicts, as well as logistical ones. So, in conclusion, nearshoring in the pharmaceutical industry not only strengthens regional resilience, but also opens a path toward greater innovation and production autonomy.
Mariana Soko (05:43):
We can say then, Ximena, that nearshoring is not just an industrial phenomenon, but a complete reconfiguration of the production ecosystem.
Ximena Juárez (05:53):
That's right. Well, now moving on to our second aspect to analyze — we want to look at the impact of automation in the region, and we think it's important to clarify that while it's a trend that's generating investments in all industries, it has a greater impact on two of them: food and beverages, and industrial manufacturing. If we start by talking about the food and beverage sector, we see a growing focus on automation and modernization initiatives based on ESG policy criteria. These reflect a strategy that combines capacity expansion, operational efficiency and sustainability, marking growth in the Industry 4.0 market, with key technologies including robotics and artificial intelligence. In this case, I'd like to mention the Pilgrim's Pride project, which is applying these types of investments at its plant in Durango.
Mariana Soko (06:48):
Just — what do we see happening in the manufacturing sector?
Chester Conway (06:54):
Well, the industrial manufacturing sector in the region is undergoing a transformation driven by Logistics 4.0, which boosts the speed and interconnectivity of operations. A clear example of this is the recently inaugurated Interoceanic Corridor of the Isthmus of Tehuantepec, designed as a smart bridge to connect the Pacific and Atlantic Oceans at the narrowest part of the country. This megaproject seeks to position the Mexican southeast as a global logistics hub, facilitating trade between Asia, America, and Europe, becoming an alternative to the Panama Canal. This corridor is bringing in investments from which industrial hubs will be established, attracting companies from various manufacturing sectors such as automotive, chemicals, pharmaceuticals, among others. We also see other smart logistics hubs emerging, such as state-of-the-art dry ports that use artificial intelligence to optimize customs management, accelerating the flow of goods toward Mexico's northern border.
Mariana Soko (07:49):
And I understand that in the manufacturing industry, the areas of logistics and distribution have a major impact with automation, right?
Chester Conway (07:54):
That's right. There's a strong automation of distribution centers, with the massive implementation of autonomous robots and the use of artificial intelligence in countries like Mexico and Panama, which allows for a significant improvement in demand forecasting accuracy. So the logistical and digital infrastructure accompanies this transformation with a transition toward Logistics 4.0, with a sustainable and therefore inherently electric focus. In that sense, there are distribution centers, for example, in Monterrey and Mexico City, that operate under net-zero models, using solar microgrids and battery storage systems to support heavy transport fleets.
Mariana Soko (08:34):
So we see how automation and ESG are closely linked. Ximena, what can you tell us about the impact this trend is having on data centers?
Ximena Juárez (08:40):
With data centers, a strengthening of digital sovereignty is evident through their hyperscale expansion into regions of Mexico, such as the Bajío and Hidalgo, which supply the so-called smart factories with real-time artificial intelligence. This evolution is complemented by the reinforcement of the redundancy network, highlighting a new subsea connectivity between Panama and Yucatán that guarantees greater security in the flow of information.
Chester Conway (09:08):
And another contribution I'd like to make about what's happening with this trend is in the automotive sector, specifically in terms of innovation, as the structural change is developing towards a concept of "manufacturing intelligence." This implies an unprecedented expansion of automotive design and engineering centers in states like Jalisco and Querétaro, which positions Mexico as an assembly and cutting-edge technological development hub.
Mariana Soko (09:41):
Well, as we see, automation is ceasing to be a competitive advantage and is becoming an operational necessity — something similar to what is happening with the application of artificial intelligence, since the two go very much hand in hand.
Chester Conway (09:59):
Right, that's right. Now we are going to introduce the ESG criteria, and it's important to point out that the adoption of this trend is not homogeneous, but rather presents different nuances in each sector. And we're going to review its impact on different industries, starting with you, Chester.
Chester Conway (10:15):
Right. Well, and we're going to start with the electric power sector. The environmental component is a clear driver of investment, especially in renewable energies, with a predominance of solar generation in this region. Almost all of the new installed capacity is of renewable origin — that is, solar, wind and hydroelectric — consolidating ESG policies as the main driver of the sector. This evolution transcends clean generation towards efficient integration. Public tenders and power purchase agreements already incorporate energy storage requirements to gain resilience. Countries like the Dominican Republic, Panama, Honduras and Guatemala add more than four gigawatts in processes of this type. However, the limited transmission and distribution capacity represents a technical challenge that forces governments to review their transition timelines.
In contrast, sectors such as oil and gas show a limited incidence of ESG criteria in their strategic decisions. Meanwhile, in the field of alternative fuels, the pressure to decarbonize has not yet translated into massive investments, due to the lack of clear regulatory frameworks, high costs and incipient demand. One example is the Ciudad Dorada biorefinery project in Panama, which has had to scale back.
Mariana Soko (11:28):
Now, focusing on the chemical processing industry, it continues to move towards sustainable models. Major investments in the region are mainly oriented toward green hydrogen and clean energy, and at Industrial Info we recorded more than $2 billion planned in green hydrogen projects, and almost the entire amount is concentrated in Mexico alone. In this country, among the major investments, the Mexican project in Sinaloa being carried out by Transition Industries stands out. This project requires $800 billion in investments.
In the rest of the region we're analyzing today — Central America and the Caribbean — green hydrogen, or power-to-X, is also a trend driving the largest amount of investment, and we're seeing $75 billion in projects, with Costa Rica as the leader.
Ximena Juárez (12:20):
Well, and if we look at productive transformation industries like paper pulp, sustainability is gaining relevance through the use of recycled materials and operational efficiency. In food and beverages, companies are mostly investing in adopting forms of clean energy. The Honduran Sugar Company project in San Pedro Sula is a clear example, with more than $60 million destined to produce electricity from sugarcane bagasse. Many companies throughout the region are leaning towards solar energy, and Mexico leads, with more than $120 million planned in ESG investments, followed by Honduras, Costa Rica and Guatemala.
And regarding the pharmaceutical industry, it has been implementing ESG policies mainly to achieve the goal of reducing its carbon footprint, and the use of renewable energy is mostly identified, where the adoption of photovoltaic panels is the most frequent choice, but also production equipment with more efficient technologies that contribute to these goals.
And finally, I'm going to refer to the manufacturing and automotive industry, as it shows the greatest consolidation for 2026. Sustainability is a critical operational requirement to access tariff benefits, such as under the USMCA. This materializes a concept we had already mentioned — zero-emission manufacturing — and in that sense, extensive use is made, for example, of green hydrogen within the steel industry applied to the automotive industry, as well as data centers supplied by renewable matrices and logistics with electrified fleets. So with this scenario, ESG policy stops being a differentiator and becomes a mandatory condition for participating in global value chains.
Chester Conway (14:05):
Well, having already seen the vectors that drive industrial investments and set trends, we must mention that today we have a global context that is heavily influenced by the conflict in the Middle East, in addition to global energy tensions and instability in countries like Venezuela and Cuba. And this also has a cross-cutting impact across all industries. We see volatility in energy and raw material prices, which increases operating costs in intensive sectors such as oil and gas, oil refining, chemical processing, and metals and minerals. This results in more expensive financing, and may also have an impact by causing delays in investment decision-making, especially in large-scale projects.
Mariana Soko (14:50):
Right. And in parallel, countries with high energy dependence, like Cuba, are going through structural crises that affect the energy and production industries. While Venezuela, despite its potential for reactivation, especially in the oil refining sector, is repositioning itself as one of the world's leading crude oil exporters, but remains very limited by internal instability. Moving towards the food and beverage, pulp and paper, and manufacturing sectors, the impact there translates into pressure on logistics and input costs, affecting margins and the pace of expansion.
To conclude, I'd like to mention that given this outlook, the global context is driving companies to adopt more cautious strategies, prioritizing efficiency, supply diversification and risk management, in an environment characterized by greater uncertainty.
Chester Conway (15:47):
Right? Yes, yes, of course. At this time, we believe it's important to highlight the role of the National Development Plan in Mexico, and to emphasize how the plan has helped the country position itself, as we mentioned earlier, as an engine for investment and industrial dynamics. And the plan is structured around three key pillars — isn't that right, Chester?
Chester Conway (16:04):
Indeed. The first of the pillars is the energy sector, under the leadership of the CFE. The expansion in power generation and distribution is fundamental to enabling growth in manufacturing, chemical processing and data centers. The next pillar is about hydrocarbons and refining, where the strengthening of Pemex and the pursuit of energy self-sufficiency are prioritized. Although this boosts the value chain, it maintains a limited private participation scheme and a high state dependency. And finally, there's the logistics infrastructure — strategic projects like the Isthmus of Tehuantepec corridor aim to improve connectivity, to boost the automotive, food and manufacturing sectors.
Mariana Soko (16:50):
So from what you're saying, Chester, while the plan drives modernization and industrial integration, its real success remains subject to structural challenges and efficiency in the execution of those projects.
Chester Conway (17:02):
Yes, especially in the energy sector, with significant investments in generation, transmission and distribution, which enables the growth of other industries. And there are also advances in logistics infrastructure, which improve connectivity and boost sectors such as manufacturing and automotive. So ultimately, the National Development Plan functions as a major enabler of industrial growth.
Mariana Soko (17:24):
Exactly. To close our meeting today, do you think we should mention the highlights and what we believe will define industries in the coming years?
Chester Conway (17:29):
Yes. In general, the ability to sustain investments in infrastructure, especially energy, as this is a primary sector — by this I mean it acts as an engine that drives the rest of the industries and the trends that run through them.
Ximena Juárez (17:47):
Yes, the ability of companies to adapt to a more demanding and changing environment is important. As we've mentioned, we see an industry in transformation, driven by new vectors, but at the same time conditioned by a complex global context.
Mariana Soko (18:04):
Excellent. Thank you very much, Ximena and Chester, for your contributions. This concludes our analysis. We ask that if you wish to delve deeper into any of the topics we've covered today, please don't hesitate to contact us by email or at the phone number shown on the screen. We thank you for your time, and hope this information is valuable to support your decisions and business strategies at an international level. Thank you for joining us, and until the next edition of Navigating the Currents of Change.
Please Select A Language
*This episode is brought to you by Industrial Info's Latin American Office in Argentina.