Nearshoring in Central America: $78 Billion in New Export Opportunities

Nearshoring in Central America is transforming the regional business landscape, creating unprecedented opportunities for companies seeking to diversify their supply chains. According to the Inter-American Development Bank, this global trend could generate $78 billion annually in additional exports to Latin America and the Caribbean.

What is nearshoring and why is it growing?

Nearshoring is the practice of moving business operations to countries geographically close to the target market, rather than to more distant locations. This strategy seeks to reduce transportation costs, delivery times and risks in the supply chain.

The trend accelerated after the global disruptions of recent years, when companies discovered the vulnerability of excessively long supply chains. U.S. companies, in particular, are relocating operations from Asia to Latin America to be closer to their core market.

According to data from the Inter-American Development Bank, the region could capture $64 billion in goods and $14 billion in additional services through nearshoring. For Central America, this represents a historic opportunity for integration into North American value chains.

Central American potential: concrete facts of the opportunity

Guatemala leads the nearshoring potential in the region, ranking sixth among the countries of the Central American Integration System (SICA) with the potential to increase their exports by more than $780 million. The sectors with the greatest potential include automotive, textiles, pharmaceuticals and renewable energy.

Investments are already coming. U.S. companies such as SanMar have committed $500 million through 2025, while Gap Inc. maintains investments of $50 million annually through 2025. Agroamerica has allocated $100 million to projects in the Northern Triangle, demonstrating the confidence of the private sector in the region.

Manufacturing growth in Mexico, which is closely integrated with Central American supply chains, shows increases of 37% in electronic components, 32% in IT equipment and 24% in electrical equipment, according to data from UNCTAD. This indicates robust regional demand for integrated production networks.

Free trade zones: driving regional nearshoring

Central American free zones have proven to be exceptional instruments for attracting foreign direct investment. Costa Rica leads this model, where free trade zones captured 64.3% of total FDI in 2024, generating $4.321 billion with growth of 24%.

The return on investment is impressive: Costa Rica's free zone program generates $6.2 in return for every dollar of tax incentives granted. At the regional level, studies indicate that free zones can return up to 7 times tax exemptions to host economies, according to analysis by ECLAC.

The 679 companies in Costa Rica's free zone regime are part of more than 10,000 companies in Latin American free zones that generate up to 15% of GDP in participating countries. The impact on employment is significant: almost 2 million direct and indirect jobs across Latin America, with salaries 1.8 times higher than the private sector average.

Industry sectors taking advantage of nearshoring

Textiles and clothing

The Central American textile industry benefits from the CAFTA-DR framework, which maintained $83.4 billion in total trade during 2024. Utilization rates reach 70% in apparel sectors, with 52% of companies planning expansion in CAFTA-DR supply in the next two years, compared to 40% in 2023.

Honduras dominates the supply of specialized coffee to the United States (30% of imports) and maintains a robust textile manufacture. North America captures 50.7% of Honduran exports, with the United States representing 36.9% of total trade relations.

Automotive and components sector

The growth of electronic components and specialized equipment in Mexico creates opportunities for Central American suppliers. Regional companies can integrate into these chains by supplying specific components, taking advantage of lower labor costs and geographical proximity.

Agribusiness

Costa Rica has developed the world's largest refrigerated terminal for pineapples and bananas, with 3,800 refrigerated connections in the Puerto Limon/Moín complex. This specialized infrastructure, financed with $992 million, positions the region as an agro-industrial hub for North American markets.

Infrastructure: The Foundation for Nearshoring Success

The region faces infrastructure needs of $2.2 trillion by 2030, but current investments show significant progress. Public-private projects grew 25% between 2022 and 2024, building over $770 billion in private investment over the last 30 years in Latin America.

Panama maintains regional port leadership with 9.4 million TEUs processed, representing a growth of 14.2% since 2023. The combined system of Panama Caribbean (Colon) and Panama Pacific (Balboa) mainly handles transshipment operations (90%), taking advantage of New Panamax capabilities and direct ship-to-rail connectivity.

Costa Rica processed 1,366 million TEUs in Puerto Limon/Moín, ranking tenth in Latin America with 3.4% growth. Honduras reached 753,000 TEUs in Puerto Cortés with historic growth of 16.9% since 2019, while Guatemala managed 554,432 TEUs in Santo Tomás de Castilla.

Digitalization of commerce: facilitating nearshoring

Regional e-commerce is approaching $180 billion in retail sales in 2024, with double-digit growth continuing through 2026. Mobile commerce captures 71% of regional sales by 2023, led by payment innovations such as Brazil's Pix system, which handles 16% of regional e-commerce volume.

SIECA implements Phase 2 of the Central American Digital Trade Platform, designed to streamline procedures and facilitate trade within and outside the region. These digital initiatives significantly reduce border processing times: Guatemala-El Salvador electronic export licensing reduced processing from 24 hours to 1.5 minutes.

Preparing to capture opportunities

Central American companies can strategically position themselves for nearshoring through several actions:

Logistic optimization: Take advantage of proximity to specialized ports and develop rapid response capabilities. The services of fiscal warehouse allow companies to maintain flexible inventories close to target markets.

International certifications: Obtain globally recognized quality standards to meet the requirements of multinational companies that relocate operations.

Digital integration: Adopt digital platforms that facilitate traceability and transparency in the supply chain, essential requirements for companies looking for alternatives to traditional offshoring.

Conclusions: a promising future for regional trade

Nearshoring represents a transformational opportunity for Central America, with $78 billion in potential additional exports backed by leading port infrastructure, successful free zones and established business frameworks such as CAFTA-DR.

Confirmed investments by U.S. companies, 25% growth in public-private projects and the accelerated digitalization of trade create a favorable ecosystem for companies seeking to take advantage of this global trend.

The region has clear competitive advantages: geographical proximity to the United States, competitive labor costs, specialized port infrastructure, and proven regulatory frameworks. Success will depend on continuing to strengthen infrastructure, deepen regional integration and maintain competitiveness in key sectors.

Is your company ready to take advantage of nearshoring opportunities? Request your quote and discover how ACONISA can support your international logistics strategy with our specialized services in international transport and customs services.

‍