Nearshoring has gained greater significance globally following the pandemic business landscape transformation. Specialists state that this trend of moving production and service operations to be closer to consumer markets, primarily in the United States, creates substantial opportunities for nations in Central America and the Caribbean.
Experts emphasize that regional companies need to enhance their technological infrastructure to fully harness the potential of the growing nearshoring trend.
Recent global disruptions like the COVID-19 pandemic and conflicts involving Russia and Ukraine, together with maritime route blockages, have triggered the rise of nearshoring. Companies now choose strategic locations that minimize risks and improve market responsiveness by being geographically closer. The growing momentum behind nearshoring in Central America and the Caribbean stems from this fundamental shift.
Rubén Guevara, who manages Panduit Costa Rica’s plant, views the current trend as “a world of possibilities” for the region. He states that substantial development and wealth creation for the region will be possible if investors and governments, together with citizens from each country, take advantage of this opportunity.
Guevara indicates that Costa Rica, Mexico, El Salvador, and the Dominican Republic have started to draw investments into strategic sectors such as advanced manufacturing, medical devices, semiconductors, agribusiness, and textiles. The push for production diversification by global corporations is evident through the momentum generated by initiatives such as the U.S. CHIPS Act. Central American and Caribbean nations begin capitalizing on their competitive advantages for global operations as nearshoring emerges as an increasingly attractive strategy.
Guevara notes that the region’s advantages for nearshoring are clear: The region benefits from its close proximity to the U.S., political stability in nations like Costa Rica, and skilled workers who speak English, coupled with appealing fiscal policies, including free trade zones. Panduit has followed this operational model for the past 30 years. He emphasizes that this factor has been essential to maintaining and expanding our operation.
Nonetheless, the landscape presents particular challenges. Guevara identifies inadequate physical infrastructure, including ports and highways, alongside electrical grids and technical talent retention issues, as significant challenges. As labor costs continue to increase, organizations need to innovate their strategies to preserve their competitive edge.
Bridging the Digital Gap to Enable Long-Term Regional Growth
For any nearshoring strategy to succeed in Central America and the Caribbean, a robust technological infrastructure must function as a strategic enabler in this particular environment.
The Panduit Costa Rica executive explains that basic operational requirements now include interconnected equipment, real-time data analytics, and ERP system integration between overseas partners and headquarters.
Connectivity solutions developed by Panduit give businesses the ability to improve their competitive edge. Guevara explains that these solutions stand out because they combine innovative design with dependable performance and operational efficiency improvements. Panduit provides quick response times along with specialized technical support and local inventory availability that help simplify new operations launches.
Capitalizing on Nearshoring
Based on Panduit’s experience, companies must strengthen three key areas to capitalize on nearshoring in Central America and the Caribbean: Businesses need to build robust operational infrastructure with redundancy capabilities while focusing on talent management through recruitment and training programs, and integrating digitalization innovations with automation and AI technology, together with predictive maintenance solutions.
Investors today place a high priority on efficiency, sustainability, and resilience. Guevara states that technological solutions that optimize energy efficiency and resource utilization both enhance operational effectiveness and improve corporate reputation.
Future Trends
Guevara points to Industrial Internet of Things (IIoT), automation, edge computing, and artificial intelligence (AI) as main drivers shaping future nearshoring trends in Central America and the Caribbean. He asserts that these technologies increase efficiency and traceability while improving responsiveness throughout supply chains.
Costa Rica stands out by advancing quickly toward becoming a central hub for global suppliers who wish to implement sophisticated solutions.
The Panduit executive provides multiple strategic suggestions for business bosses aiming to adopt these technological advancements. Business leaders should focus on building scalable technological infrastructure and adopting continuous digital transformation principles while forming partnerships with dependable strategic allies who provide long-term vision and fast support.
Guevara underlines that nearshoring represents a fundamental structural shift rather than just a temporary business trend. Organizations that combine foresight with advanced technology and strategic partnerships will spearhead future regional growth.
Guevara explains that this transformation requires the creation of robust business ecosystems, which benefit from emerging technologies that allow swift responses to global market changes, efficient handling of supply chain disruptions, and enhanced customer experiences through integrated digital solutions.
He states that there will be an enhanced emphasis on advanced automation, as well as AI applications in logistics and manufacturing, paired with cybersecurity to support sustainable and secure operations. Businesses that strategically merge these technological elements will find themselves better positioned to obtain new funding and expand their international market reach.
Coordination between the private sector, government entities, and academic institutions forms a crucial element, together with technology and infrastructure. In the new global context, nearshoring in Central America and the Caribbean requires essential collaboration to be a sustainable competitive strategy. According to Guevara, creating strong, productive ecosystems requires a combined effort to develop talent alongside regulatory improvements and urban planning.