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In today's interconnected global economy, the synergy between San Antonio, Texas, and Mexico offers a strategic pathway to economic prosperity. The relationship between these neighboring regions is characterized by a unique blend of cultural affinity, economic opportunity, and shared challenges. As the world continues to adapt to shifting trade dynamics and geopolitical realities, the collaboration between San Antonio and Mexico has the potential to redefine regional growth through innovative models like nearshoring and cross sector collaboration such as the Triple Helix Model. This blog explores these dynamics, emphasizing the opportunities and the need for proactive engagement to ensure mutual success.
Understanding Nearshoring's Role in Economic Growth
Nearshoring, the strategy of relocating business operations closer to target markets, has become a major trend in global trade, especially for North American companies. While Mexico’s official stance has been understated, private sector interest in nearshoring remains robust. Businesses and international investors continue to see Mexico as a key player due to its proximity to the U.S. market and competitive labor costs.
In our work at the Better Futures Institute, we’ve observed how San Antonio's geographic advantage complements this trend, positioning it as a prime logistical hub for nearshoring in North America. For instance, recent studies highlight a surge in demand for industrial real estate in northern Mexico and nearby regions like Laredo, Texas, as companies aim to cut transportation costs and reduce risks. Our South Texas Triangle research underscores the importance of these strategic locations, not only for economic benefits but also for regional resilience and accessibility.
Image by Better Futures Institute. Industrial Real Estate Vacancy Percent in Northern Mexico and Texas 2020-2024
Image by Better Futures Institute, Industrial Real Estate New Construction as % of Total Stock in Northern Mexico and Texas 2020-2023
Image by Better Futures Institute, Industrial Real Estate Asking Rent $USD/Sqft/Year in Northern Mexico and Texas 2020-2024
Case Study: Prodensa's Insights on Industrial Real Estate
The nearshoring boom has reshaped the industrial real estate markets in both Mexico and Texas. A study by Prodensa revealed a surge in demand for warehousing, manufacturing, and logistics facilities along the U.S.-Mexico border. Specifically, the demand for industrial real estate in northern Mexico and cities like Laredo, Texas, increased by over 25% in the past year, as companies sought to mitigate risks and reduce transportation costs. This demand highlights the importance of strategic locations like San Antonio, where proximity to the U.S. market can provide significant logistical advantages.
Challenges and Advantages of Nearshoring for International Companies
Despite the economic promise of nearshoring, international businesses have expressed concerns about the stability of operating in Mexico. According to the United States-Mexico Chamber of Commerce, many European and Asian companies are exploring options to build manufacturing plants in Texas to avoid supply chain disruptions. This shift is driven by the need to ensure more stable operations and reduce potential risks associated with political and security issues in Mexico. Recent trends show that nearly 40% of investment inquiries in northern Mexico in 2024 have come from Chinese firms, but many are simultaneously evaluating options in Texas to diversify their risk exposure.
Origin of the Triple Helix Model
The Triple Helix Model, developed by Henry Etzkowitz and Loet Leydesdorff, is a framework that positions universities, industry, and government as central collaborators in regional development. This model emphasizes the importance of knowledge-driven economies and is particularly effective in fostering growth when all three sectors collaborate.
In Querétaro, Mexico, this model has led to notable successes in the aerospace industry, where partnerships between universities, government, and private companies have significantly reduced the skills gap. The Better Futures Institute’s Civic Tech Scholars program reflects a similar commitment, developing talent through hands-on experience in fields essential to San Antonio’s growth, like data science, software development, and urban planning. As we continue to expand these initiatives, we see them as part of a broader, regionally driven effort to cultivate a skilled workforce that meets the needs of industries across the U.S. and Mexico.
Visual representation of the Triple Helix Model showing the interactions between universities, industry, and government.
Case Study: Talent Integration through the Triple Helix
A notable example of the Triple Helix Model's success can be seen in the aerospace industry in Queretaro, where collaborations between local universities, government agencies, and major aerospace firms have significantly reduced the skills gap. According to data from the Baker Institute, Queretaro has seen a 15% increase in industry-aligned graduates in aerospace engineering programs, directly contributing to the needs of companies such as Bombardier and Safran. The Better Futures Institute’s Civic Tech Scholars program is committed to developing talent through hands-on experience in fields essential to San Antonio’s growth, like data science, software development, and urban planning. As we continue to expand these initiatives, we see them as part of a broader, regionally driven effort to cultivate a skilled workforce that meets the needs of industries across the U.S. and Mexico.
Cultural Affinity and Soft Landing for International Businesses
San Antonio’s cultural affinity with northern Mexico stands out as one of its most significant assets. This connection facilitates smoother business interactions and fosters a welcoming environment for Mexican companies seeking to expand into the U.S. market. The city’s support systems—including incubators, legal expertise, and a skilled workforce—make it an attractive “soft landing” for international businesses. The Better Futures Institute, through its community-focused initiatives and research efforts, actively supports this environment by fostering dialogue, reducing barriers, and preparing the local workforce to engage with these cross-border opportunities.
The Role of the South Texas Triangle
The South Texas Triangle has become a crucial region for nearshoring efforts. Its strategic location and infrastructure make it a key area for businesses looking to serve both the U.S. and Mexican markets. The Triangle is recognized for its potential to streamline logistics and reduce transportation times for goods moving between Mexico and the U.S. For instance, logistics expansion in Laredo has boosted trade efficiency, with the city processing over $200 billion in trade annually.
Strategic Positioning for Growth
San Antonio's availability of mega sites—large parcels of land equipped with necessary infrastructure—makes it an ideal location for new manufacturing plants and distribution centers. This is particularly attractive to companies seeking to mitigate the risks of operating exclusively in Mexico while maintaining proximity to the North American market. The expansion of logistics facilities near Laredo, Texas, for instance, has led to an increase in trade volume, further solidifying San Antonio's role in facilitating cross-border trade.
The Better Futures Institute’s South Texas Triangle research focuses on these dynamics, assessing how binational collaboration and sustainable urban development can strengthen this region. This research informs our programs and partnerships, leading BFI’s strategy to foster meaningful impact on both sides of the border.
The Competitive Landscape
While San Antonio has a wealth of advantages, it cannot afford to rest on its laurels. The competition from other U.S. cities and regions looking to attract nearshoring businesses is fierce. Cities across Texas and beyond are also positioning themselves as viable alternatives to Mexico for international companies. As such, San Antonio must proactively promote its strengths and build stronger ties with Mexican industry leaders to ensure it remains a preferred destination for nearshoring investments.
Driving Indicators: Mexican Food and Beverage Industry
One area ripe for economic collaboration is the Mexican food and beverage sector. Large companies like Grupo Bimbo and other well-known Mexican brands have a substantial presence and consumer recognition on both sides of the border. These brands provide a template for economic engagement, showcasing how businesses can leverage cross-border synergies to achieve success. San Antonio can capitalize on this by creating incentives for Mexican food and beverage companies to establish distribution centers or processing plants in the region, thus generating jobs and contributing to the local economy.
The path to prosperity for San Antonio and Mexico lies in their ability to work together to harness opportunities like nearshoring and the Triple Helix Model. By leveraging their cultural ties, complementary strengths, and strategic location, these regions can create a robust economic partnership that benefits both sides of the border. However, realizing this vision requires proactive engagement and investment in workforce development, infrastructure, and industry partnerships. San Antonio must act swiftly to solidify its position as a hub for nearshoring and cross-border trade, ensuring that it remains competitive in an evolving global economy.
By addressing these challenges and seizing the opportunities, San Antonio and Mexico can build a shared future of growth and prosperity—one that stands as a model for regional collaboration in an interconnected world.
Let us know what you think! We’d love to learn more about your perspectives on how San Antonio and Mexico can continue to collaborate for a brighter economic future. Join the conversation and share your thoughts.
Dr. Alberto Gomez is a San Antonio-based entrepreneur. He is the Co-founder, President and CEO of Better Futures Institute, and Co-founder of Irys Technologies, a data analytics and cybersecurity firm. He holds a Ph.D. in Communication and Creative Industries.
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