Andrew McDonald-Hughes Highlights Mexico’s Expanding Role in the North American Supply Chain

During the Manufacturing & Supply Chain Nearshoring Summit in El Paso, Andrew McDonald-Hughes, Chief Financial Officer at Macquarie Group, offered a grounded and forward-looking analysis of Mexico’s accelerating importance in the North American production network. His insights added a clear Texas-centered perspective to a conversation defined by cross-border integration and long-term investment confidence.

Andrew emphasized the summit’s role as a strategic gathering point where Texas industrial leaders, logistics executives, and manufacturing specialists reconnect around a shared mission: strengthening the value chains that bind Texas and Mexico.

“It’s a really important opportunity for the industry to reinforce the value chain and the integrated supply chains we’ve got across North America,” he said, underscoring the ongoing need for bilateral investment to keep the region competitive.

He highlighted a defining metric of today’s landscape: Mexico continues to be the United States’ largest trading partner, backed by stable, long-term trade data. Even as some market participants navigate uncertainty around future policy shifts, nearshoring momentum remains firm, with companies still prioritizing North America for production, logistics, and strategic expansion.

Andrew pointed to several structural advantages that keep Mexico attractive for export-oriented manufacturers: proximity to the U.S., a highly efficient labor force, and modern industrial facilities capable of supporting advanced production requirements. These fundamentals, he noted, align directly with Texas’ position as the leading binational logistics hub—home to the busiest land ports, cross-border corridors, and inland distribution centers powering the regional supply chain.

“Mexico offers regional access, high-quality and efficient labor, and sophisticated industrial facilities—key advantages for export-focused manufacturers,” he noted.

He also referenced broader industry metrics showing the scale of current activity: across the region, tens of millions of square feet of industrial space have been absorbed or newly developed in response to nearshoring, reflecting sustained demand and strong long-term fundamentals. These patterns, he explained, reinforce why both countries must continue investing in infrastructure, workforce development, and integrated supply-chain strategies.

As he closed, Andrew reaffirmed a sentiment shared across the summit: North America’s manufacturing future is being built in real time, with Texas and Mexico standing side by side as its core engine. The region’s fundamentals remain strong, and its long-term outlook continues to inspire confidence among global investors and operators alike.