Home Depot has unveiled a expansion plan in Mexico, committing $1.3 billion between 2025 and 2028. The investment aims to strengthen the company’s presence in the country, generate employment, and increase the percentage of locally sourced products.
The announcement was made by Ximena Escobedo Juárez, head of the Productive Development Unit at the Ministry of Economy, who highlighted that Home Depot currently employs over 18,000 people in Mexico. The expansion is expected to create an additional 2,000 direct jobs and over 10,000 indirect positions.
How will this investment impact Home Depot’s supply chain in Mexico?
One of the key goals of this investment is to boost national suppliers. Currently, 85% of the products sold in Home Depot Mexico are sourced from local providers. With this financial injection, the company aims to achieve 100% national sourcing by 2028.
Home Depot Mexico’s President and CEO, José Antonio RodrÃguez Garza, emphasized that the company is committed to supporting local industries and manufacturers. “We believe that Mexican-made products are innovative, high-quality, and valuable for millions of families worldwide,” he stated. The company also plans to integrate more local suppliers into its value chain, allowing them access to Home Depot’s stores in the United States and Canada.
How many new Home Depot stores will be opened in Mexico?
As part of its expansion plan, Home Depot aims to open five new stores per year, reaching a total of 165 locations nationwide by the end of 2028. This growth strategy will not only create more jobs but will also solidify Home Depot’s leadership in Mexico’s home improvement market.
RodrÃguez Garza noted that Home Depot is dedicated to remaining the “authority on home improvement products,” with a portfolio of nearly 50,000 items. Additionally, the company is enhancing its digital presence. Its website currently receives 250 million visits annually, making it the sixth most-visited retail site in Mexico.
What role does sustainability play in Home Depot’s expansion?
Sustainability is a crucial aspect of Home Depot’s expansion strategy. Nearly half of its stores in Mexico already operate with renewable energy, and the company intends to further its commitment to reducing its carbon footprint. The expansion will also include an increased range of eco-friendly products, aligning with global trends in sustainability.
Home Depot’s social responsibility initiatives will continue to play a major role in its operations. The company has conducted over 8,000 volunteer programs in Mexico, supporting communities through various social projects.
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What is Plan México, and how is Home Depot’s investment aligned with it?
The investment is closely tied to “Plan México,” an economic strategy led by President Claudia Sheinbaum. Introduced on January 13, 2024, this initiative seeks to enhance Mexico’s industrial development and economic resilience in response to U.S. trade policies, including potential tariffs.
Plan México emphasizes strengthening domestic markets, attracting foreign investment, and increasing the percentage of locally produced goods in key industries. The program also aims to position Mexico among the world’s top ten economies by increasing the country’s investment-to-GDP ratio.
One of its main components is the “Hecho en México” campaign, which promotes Mexican-made products across multiple sectors. Home Depot’s commitment to reaching 100% local sourcing by 2028 is a perfect example of how private enterprises are aligning with the government’s vision.
How does this investment benefit Mexico’s economy?
This large-scale investment brings substantial economic benefits to Mexico. By increasing local production, Home Depot’s expansion supports small and medium-sized enterprises (SMEs), strengthens domestic manufacturing, and enhances Mexico’s position in global trade.
Additionally, the job creation aspect is significant. With 2,000 direct and 10,000 indirect jobs being added, the construction, logistics, and retail sectors will experience notable growth. Furthermore, by providing Mexican suppliers access to international markets, Home Depot fosters long-term economic sustainability.
