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…
According to the World Economic Forum, “Many global manufacturing OEMs have been struggling to find alternative solutions, like shifting orders to secondary suppliers to make up the missed deliveries”, the U.S. in particular sees Mexico as the perfect location for opening more and more production facilities with shorter delivery routes. In the pursue of finding…
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…