Mexican trucking firm’s latest nearshoring net is moving workers

Mexican trucking firm Grupo Traxion is expanding its service to transport industrial workers in the country, an area where it’s seeing double-digit growth from the investment trend known as nearshoring.

The company plans to invest 4.2 billion pesos ($249 million) in 2024, up 24% from the previous year, said Antonio Tejedo, vice president of investor relations for Traxion. The Mexico City-based firm is expanding its service to bring employees to their workplaces in industrial parks and factories, often in remote areas that lack public transport. 

“When you have a plant that’s probably between 40 and 50 minutes away from a city like Monterrey, for example, where there are no people around, no one lives there, you have to provide an option to your employees,” said Tejedo in an interview. “It’s more comfortable, safer, and your workers arrive on time. It’s convenient and becomes an almost mandatory service.”

The move underscores the growth in the industrial sector in Mexico as companies from around the world seek to be closer to the US’ large consumer market, a trend known as nearshoring. Traxion is among a slew of companies that turned to public markets to raise cash amid the buzz, raising $223 million last year. 

Transporting workers represents about 35% of the company’s income, which has more than 8,000 buses and moves more than one million people per day, Tejedo said. Traxion is eight times bigger than its nearest competitor in the business, he added.