Mexico is advancing in innovation, sustainability, and social development. Mexico City, Querétaro, and Jalisco lead the way, attracting investment and strengthening nearshoring.

Industry 5.0 is transforming the global industrial landscape, and Mexico could attract high-value investments. This model, which goes beyond the automation and digitalization of Industry 4.0, seeks to integrate technological innovation with social development and sustainability. According to FINSA 's most recent Industrial Development Index , the states best aligned with this transition are Mexico City, Querétaro, and Jalisco.

What is the difference between Industry 4.0 and Industry 5.0?

Unlike Industry 4.0 , which prioritizes automation, the Internet of Things (IoT), and Artificial Intelligence, Industry 5.0 is evolving with a more human and sustainable approach. The goal now is to have technology work hand in hand with people, rather than replacing them.

This revolution strikes the perfect balance between technological innovation, worker well-being, and respect for the environment. The key idea is for the factories of the future to be more efficient, but also more humane and responsible for the planet, resulting in more agile and resilient manufacturing.

Nearshoring in Industry 5.0

Nearshoring has positioned the country as a key relocation destination for companies seeking to reduce their dependence on Asia and gain access to the North American market. However, to consolidate this competitive advantage, Mexico must invest in advanced manufacturing based on smart, sustainable, and highly specialized processes.

“To fully capitalize on Nearshoring, we must not only rely on infrastructure and geolocation, although the FINSA Industrial Development Index underscores the need for public policies and business strategies that strengthen balanced growth across the three pillars of the Industry 5.0 model. To consolidate a more robust and sustainable industrial ecosystem, it is crucial that technological innovation goes hand in hand with improvements in quality of life and environmentally responsible development,” added Sergio Arguelles, CEO and president of FINSA.

Industry 5.0 in Mexico

Mexico is taking a step forward in industrial evolution with the arrival of Industry 5.0. In addition to assembling products, this will allow the country to participate in the design, customization, and development of technological solutions that respond to market needs.

This transformation not only serves to diversify the economy but also to attract high-value investments, driving innovation and growth in the country.

FINSA key indicators to measure Industry 5.0 in Mexico

Defined by the European Union, Industry 5.0 represents an evolution of Industry 4.0. While it promotes collaboration between humans and machines, the Finsa Industrial Development Index used three key pillars to measure how aligned Mexican states are with this model:

• Innovation (Industry 4.0) : Number of researchers in STEM fields and invention applications in relation to the population.

• Social development : Average income and average schooling.

• Sustainable development : Weighted average of environmental indicators.

Leading states in the Industry 5.0 model

The study highlights the five states with the best balance between innovation, social development, and sustainability:

1. Mexico City

2. Querétaro

3. Jalisco

4. Nuevo León

5. Aguascalientes

Key findings on Industry 5.0 in the Industrial Development Index

1.- Imbalances in the transition to Industry 5.0

Although several states are leaders in innovation, they lag behind in social development and sustainability. For example, Morelos, Guanajuato, Jalisco, and Mexico City have dropped more than ten places in social development compared to their leadership in innovation.

Likewise, Yucatán, Chihuahua, Nuevo León, and Querétaro show drops of more than ten positions in the concept of sustainable development.

2.- States with balance in the three pillars

San Luis Potosí and Coahuila stand out for maintaining a balance in their positions in innovation, social development, and sustainability.

3.- Growth cases

Some states have made significant progress in social and sustainable development, although they are not leaders in innovation. For example, Aguascalientes rose from 15th in innovation to 4th in social development and 3rd in sustainability.

For its part, Tlaxcala climbs from position 26 in innovation to 9 in social development and sustainability.