Image: Arizona Gov. Katie Hobbs speaks at the Arizona-Mexico Forum on Friday. The event was put on by ASU’s School of Transborder Studies. Photo by Dustin Davila-Bojorquez/ASU

PHOENIX – Arizona Governor Katie Hobbs underscored the increasing importance of cross-border collaboration between Arizona and Mexico at the Arizona-Mexico Forum, hosted last Friday by Arizona State University. With key sectors such as manufacturing and semiconductor production playing a growing role in the state’s economy, Hobbs stressed that partnerships with Mexico are crucial for Arizona’s continued growth.

“Arizona is at the forefront of the American manufacturing resurgence, particularly in advanced semiconductor manufacturing,” Hobbs said in her address. “Our geographic proximity to Mexico offers seamless access to manufacturing hubs, reducing costs and fostering efficient production pathways. These areas are gateways to a brighter future for both of our regions.”

The forum, held at ASU’s Thunderbird School of Global Management, brought together nearly 100 academic and industry leaders from both sides of the border to discuss enhancing cross-border partnerships. The event featured five key panels focused on critical areas: nearshoring, water and environmental issues, energy, investment and infrastructure, and workforce development and labor mobility.

A Personal Connection to the Border

For Irasema Coronado, director of ASU’s School of Transborder Studies, the forum held personal significance. Growing up in Nogales, Arizona, Coronado’s family frequently crossed the border for business. She reflected on the ease of border crossings in her youth and expressed hope that the forum would help rekindle the spirit of collaboration between Arizona and Mexico.

“I remember crossing the border several times a day,” Coronado said. “It was so common back then. I hope this forum will lead to more collaboration and understanding between our two regions.”

Challenges and Opportunities in Nearshoring

The first panel of the day delved into the possibilities and challenges of nearshoring, a strategy that moves parts of a company’s supply chain closer to its main market. Thomas Maynard, senior vice president of business development for the Greater Phoenix Economic Council, emphasized the importance of workforce development, infrastructure, and cultural understanding in successful nearshoring.

“We need to bridge cultural differences in the workforce,” Maynard said. “Even when people speak the same language, miscommunication can occur between engineers and non-engineers.”

Veronica Villena of ASU’s W.P. Carey School of Business raised concerns about sustainability in nearshoring practices, noting that the environmental impact of expanded business operations should not be overlooked.

“We must ensure that supply chains are sustainable,” Villena said. “How can we work with factories, especially in Mexico, to embed sustainability into their business culture?”

Water, Energy, and Environmental Concerns

Water and environmental issues dominated the second panel, with Sarah Porter, director of ASU’s Kyl Center for Water Policy, asking participants about the challenges of cross-border water management. Panelists highlighted the growing demand for water along the border amid dwindling supply and the uncertainty posed by climate change.

“We need to address the delicate balance between demand and supply before it’s too late,” said Francisco Lara-Valencia, a professor in ASU’s School of Transborder Studies.

Energy discussions followed, focusing on the need for a regional approach to energy regulation. Abraham Zamora, chairman of the Mexican Energy Association, called for better alignment between U.S. and Mexican energy policies to optimize cross-border energy cooperation.

“We need to view the region as one entity in the energy sector,” Zamora said. “Both countries stand to benefit from greater integration.”

Addressing Workforce Development and Labor Mobility

The final panel focused on workforce development and labor mobility, highlighting the role universities can play in training a cross-border workforce. Miguel Sigala, a graduate research aide at ASU, emphasized that institutions like ASU can serve as “strategic agents” in preparing the workforce needed for Arizona’s semiconductor industry.

Sean Manley-Casimir of the University of Arizona proposed expanding student exchange programs and scholarships between the U.S. and Mexico to promote educational mobility, suggesting that this would be vital for economic growth in both countries.

“We need to make it easier for students to study across borders,” Manley-Casimir said. “This is key for developing a workforce capable of supporting industries like semiconductors.”

Jorge Mendoza Yescas, General Counsel of Mexico in Phoenix, echoed the sentiment, noting that there is a “five-year window” of opportunity to develop policies that facilitate the movement of goods and labor between Arizona and Mexico, particularly in semiconductor production.

“Arizona and Mexico must seize this moment,” Mendoza Yescas said. “There’s significant interest in relocating semiconductor processes to border states like Sonora and Chihuahua, and we need to be ready.”

The forum ended with a shared sense of urgency to address the challenges and capitalize on the opportunities that Arizona-Mexico collaboration presents. As Governor Hobbs stated, the future of both regions depends on continued cooperation across borders.