Does China emerge as the ultimate victor in the nearshoring landscape?
🇨🇳 Does China emerge as the ultimate victor in the nearshoring landscape?
The practice of nearshoring, particularly bringing manufacturing back from Asia to the Western hemisphere, is seen as an advantage for American producers. However, there is concern that it may strengthen China's position in global trade. Chinese companies have been leasing a significant portion of industrial park space in Mexico, making substantial investments in the country, and establishing production facilities for the US market. These Chinese suppliers take advantage of the North American content requirements specified in the United States-Mexico-Canada Agreement (USMCA) to access local markets without tariffs.
The article discusses the impact of supply chain disruptions and the potential benefits of nearshoring, particularly in Mexico, for U.S. importers.
Nearshoring, the practice of moving manufacturing operations closer to North America, is unlocking growth opportunities in the less-than-truckload (LTL) freight transportation industry.
The practice of nearshoring, particularly bringing manufacturing back from Asia to the Western hemisphere, is seen as an advantage for American producers.
Nearshoring, driven by trade and political tensions with China, is gaining momentum as U.S. companies invest in minimizing supply chain disruption.
US companies are increasingly embracing nearshoring as a response to the pandemic and tightening sanctions.
U.S. logistics companies Redwood Logistics and BlueGrace Logistics are expanding operations in Mexico as the trend of nearshoring to the country gains momentum.
Nearshoring and reshoring are two strategies used by companies to manage their supply chains and production processes.
The trend of nearshoring is on the rise, with American companies increasingly moving their operations to Mexico.
Once paraded as the best option for cheap labor in the manufacturing sector, China’s workers have become more skilled and less poverty-stricken.
Nearshoring refers to the practice of moving business operations or manufacturing facilities to a location that is closer to the company's primary market - typically, to a different region within the same country or to a neighboring country.
It remains to be seen long-term, however, the near-shoring trend may reduce the amount of supply chain constraints that have stressed the industry over the past few years.
The U.S. supply chain issues have forced companies to reconsider their sourcing and operations strategies and many have decided to bring everything back close to the chest.
Arrive Logistics and BlueGrace Logistics have jumped on the nearshoring bandwagon by opening their first offices in Mexico.