Mexico is a major manufacturing hub for many global companies. It offers several advantages, including a large and skilled workforce, competitive labor costs, and proximity to the United States market. However, strategic sourcing in Mexico can be challenging, and there are a number of common mistakes that companies should avoid. 1. Not understanding the Mexican…
Mexico has long been a popular destination for nearshoring, and the trend is only expected to continue in the years to come. There are a number of factors driving this growth, including Mexico’s proximity to the United States, its large and growing workforce, and its competitive labor costs. In addition, Mexico has been investing heavily…
Nearshoring is a trend that consists of companies moving their operations to nearby countries, instead of doing it to distant countries. Mexico is one of the most attractive countries for nearshoring, thanks to its geographical location, its skilled workforce and its low costs. In recent years, according to Economy Department of Mexico, Mexico has experienced…
In the face of global challenges, such as supply chain disruptions and shifting market dynamics, manufacturing OEMs are seeking alternative solutions to meet their production demands. One country that has emerged as an attractive option for opening production facilities with shorter delivery routes is Mexico. In this blog, we will explore the significance of strong…
A Buyer’s Market for Indirect? This month’s Manufacturing ISM report brings good news for North American buyers of indirect spend. Corrugate, pallets, and freight are all listed in the Commodities Down in Price, with no indirect commodities listed in the Commodities Up in Price or the Commodities in Short Supply listings. This aligns with our…
Companies continue to establish supply chain networks & manufacturing in Mexico. However, there remain challenges to sourcing in Mexico. Mexican suppliers are overwhelmed by the large number of companies trying to diversify their supply chain. As a result, they are often not responding to requests for quotes or are providing extremely high quotes to see…
Currently in China, “Zero COVID” policies continue to be implemented that imply extensive confinements. According to The Inter-American Development Bank (IDB), there are estimates that suggest around 79% of US manufacturing companies in China have already started or have plans to relocate part of their operations to North America and Mexico. A big wave of…
Nearshoring is becoming an important initiative for global manufacturing companies that haven’t already established a strong North American supply base. It’s making more sense to “make where you sell and buy where you make” given ongoing freight challenges and shifting economics (mainly labor costs and exchange rates) that have made sourcing to Asia a less…