In August 2023, Mexican exports to the US surpassed China for the first time. As companies prioritize securing supply their chains after years of logistics challenges, Mexico has begun to see major benefits. With a spate of new infrastructure projects such as the Interoceanic Corridor of the Isthmus of Tehuantepec coming online in 2023, the country is actively opening itself to investment. The chemical industry, in particular, is positioned for nearshoring-driven growth.

Depressed prices for chemicals and petrochemicals globally were, however, a challenge for companies along the Mexican chemical industry value chain. Locally, feedstock shortages remained a concern due to the unreliability of Pemex. And regulation has been an ever-present threat to chemical manufacturers, with a new ban of glyphosates and stringent restrictions on drug precursors complicating strategic planning and operations.

In this challenging landscape, and with the specter of both local and global elections looming, the chemical industry spent 2023 focused on government relations and developing a unified approach to policy and political change. Individual companies, meanwhile, prioritized incorporating advanced technologies to improve efficiencies and implementing their ambitious sustainability agendas. Mexico’s chemical industry is entering 2024 with stronger supply chains, lower emissions, and improved processes. It is poised to play a pivotal role in the country’s economic development.