North America's Manufacturing Hub Gains Momentum

Canada and Mexico attracted record levels of foreign direct investment (FDI) in 2025, underscoring the region's growing role as a global manufacturing and supply-chain hub. This growth is driven by investors seeking to capitalize on North America's favorable business environment, skilled workforce, and strategic location. As a result, Canada and Mexico have become increasingly attractive destinations for multinational corporations looking to establish or expand their operations in the region.

["Foreign direct investment into Canada totaled $96.8 billion in 2025, the highest level since 2007, according to Statistics Canada. This represents a significant increase from previous years, with fourth-quarter inflows reaching $25.1 billion, driven largely by mergers and acquisitions. The U.S.-based investment remained a major contributor to Canada's annual inflows, while total net investment into the country exceeded outflows for the year, marking a sharp reversal from 2022, when capital flight outpaced inflows.", ['At the same time, Canadian direct investment abroad cooled to $79 billion for the year, the weakest level since 2020, reflecting a pullback in overseas mergers and acquisitions. This trend is likely due to the increased uncertainty surrounding global trade policies and the associated risks associated with investing abroad. Despite this, Canada remains an attractive destination for foreign investors seeking to tap into its highly skilled workforce and strategic location.', ["Mexico also closed 2025 at a historic peak, drawing $40.871 billion in FDI, a 10.8% year-over-year increase, according to the Ministry of Economy. This result marks Mexico's fifth consecutive year of FDI growth and the highest level ever recorded in a single year. The surge in investment is driven by Mexico's growing reputation as a hub for manufacturing and supply-chain operations.", ["Reinvestment of profits accounted for 67.7% of total inflows, while new investments surged 132.9% to $7.38 billion, signaling fresh project launches tied to nearshoring and industrial expansion. The U.S. remained Mexico's largest investor, contributing $15.877 billion, or 38.8% of total inflows. Canada and Spain were also among the top sources of capital, reinforcing deepening North American integration under USMCA.", ["The parallel investment surges come as global FDI flows to developing economies declined in 2025, according to UN estimates cited by Mexican officials. This trend reflects investors' growing focus on established markets with more stable economic environments. The record inflows point to continued capital commitments in production capacity, industrial real estate and transportation infrastructure across the continent.", ["While tariff volatility and political uncertainty remain risk factors heading into 2026, 2025's data suggest investors are still placing long-term bets on North America as a consolidated production platform. This confidence is reflected in the growing number of foreign companies establishing operations in Canada and Mexico, driven by the region's favorable business environment and highly skilled workforce.", ["The TexAmericas Center welcomed a delegation from the Tokyo Metropolitan Government to its Texarkana campus for a two-day visit aimed at strengthening economic cooperation and supporting Japanese companies expanding into Texas. The visit was held under the Texas-Tokyo Statement of Mutual Cooperation, a 2022 agreement between the State of Texas and TMG's Bureau of Industrial and Labor Affairs.", ["The delegation reviewed the industrial park's soft-landing services for foreign companies, including flexible lease options, build-to-suit opportunities, integrated rail and transload operations, third-party logistics services and access to federal, state and local incentives. This reflects TexAmericas Center's commitment to providing a comprehensive range of support services to help foreign companies establish successful operations in Texas.", ["The Tokyo delegation was led by Futoshi Negishi, director for Overseas Market Development in TMG's Commerce & Industry Division, and included senior officials involved in overseas business development and international investment. The visit demonstrates the growing importance of North America as a hub for international trade and investment.", ['TexAmericas Center owns and operates nearly 12,000 acres and approximately 3.5 million square feet of industrial, warehouse, office and logistics space in the Texarkana region. The center has been ranked among the top 10 in the country for six consecutive years by Business Facilities magazine, most recently at No. 5 in 2025.', ["Twin Eagle Terminals & Logistics has completed a 2,000-foot rail track expansion at its transload facility in Big Spring, Texas, according to a news release. The expansion increases the terminal's total rail footprint to more than 37,000 feet of track and enhances throughput for pipe and oversized materials.", ['The facility, served by Union Pacific Railroad, operates 24/7 with in-house switching and material handling capabilities. Company officials said the additional track will improve car velocity, reduce congestion and provide more scalable transload capacity for customers.', ['Twin Eagle said the Big Spring project is part of a broader strategy to invest in rail infrastructure and expand terminal capacity across its network to strengthen first- and last-mile logistics coordination.', ['Twin Eagle Terminals & Logistics operates rail-served terminal and transload facilities supporting the energy, industrial and bulk commodity sectors across key U.S. markets.']]]]]]]]]]]]]]