Imagine fleets of trucks loaded with high-tech equipment and innovative products crisscrossing the U.S.-Mexico border, connecting the vast North American free trade zone. This isn't just transportation—it's the engine of manufacturing transformation and economic growth. Werner Enterprises CEO Derek Leathers has keenly identified this trend, asserting that cross-border transportation services are poised for explosive growth as foreign direct investment pours into Mexico.
Mexico's Manufacturing Sector Gains Momentum
Recent government data reveals Mexico attracted over $55 billion in foreign direct investment during the first half of 2025, shattering records set during the same period in 2024. Notably, 46% of this investment—more than $25 billion—originated from the United States and Canada. Speaking at Deutsche Bank's 2025 Transportation Conference, Leathers highlighted how this disproportionate North American investment signals tremendous potential for cross-border transportation.
Three-Phase Investment Cycle Drives Transportation Demand
Leathers outlined a three-stage manufacturing investment cycle, each generating distinct transportation needs:
- Phase One: Capacity Expansion - Companies increase shifts at existing facilities to boost production efficiency, requiring more raw material shipments and finished product transportation.
- Phase Two: Equipment Upgrades - Businesses modernize machinery to enhance production capacity and expand assembly operations, necessitating transport of new equipment and components.
- Phase Three: New Facilities - The most significant phase sees companies establishing new Mexican factories, creating massive demand for transporting construction materials, manufacturing equipment from North America, and subsequent distribution of finished goods to U.S. markets.
Werner's Competitive Edge: 25 Years of Mexican Market Expertise
Werner Enterprises brings quarter-century experience in Mexican operations, with Leathers himself fluent in Spanish and possessing extensive Mexico City work experience. This deep local knowledge enables nuanced understanding of manufacturing trends and client requirements.
The company maintains an extensive Mexican network including a Laredo, Texas transload facility and offices in Mexico City, Monterrey, Querétaro, and Guadalajara, supported by over 100 in-country employees.
Economic Drivers Behind Mexico's Manufacturing Rise
Multiple factors converge to position Mexico as a manufacturing powerhouse:
- Substantial labor cost advantages compared to the U.S. and Canada
- Geographic proximity enabling efficient U.S. market access
- Beneficial free trade agreements with numerous nations
- Pro-business government policies encouraging foreign investment
Beyond Transportation: Supply Chain Optimization
Cross-border logistics now represents strategic value chain extension rather than mere commodity transportation. Efficient movement of goods enables cost reduction, operational streamlining, and enhanced competitiveness through optimized supply chains.
Structural Shifts Fueling Manufacturing Migration
The manufacturing exodus to Mexico reflects fundamental global economic realignments:
- Post-pandemic supply chain diversification priorities
- Geopolitical stability considerations
- Technological advances reducing pure labor cost dependencies
As these macro trends continue unfolding, cross-border transportation stands positioned for sustained growth, connecting North America's increasingly integrated manufacturing ecosystem.