Industrial near-shoring trend is only growing

Trade & Border IssuesHot SpotsInflationMoney Matters
Written By Jennifer Joslyn

🏭 Industrial near-shoring trend is only growing.

Strained supply chains are being forced to take their industrial efforts south of the border in Mexico, creating pressure on cross-border spot rates. Rising labor costs in Asia - particularly China - are perpetuating the issue. China was once a traditionally low-cost manufacturing option for many companies, but as wages and other labor-related costs have risen and companies are forced to look elsewhere to reduce costs. Shipping goods from Asia to other parts of the world can be very expensive and time-consuming, especially when factoring in transit times, customs clearance, and tariffs. Near-shoring to Mexico allows companies to reduce these costs and increase speed to market.

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Harnessing the Power of Mexico Nearshoring for Supply Chain Success
Harnessing the Power of Mexico Nearshoring for Supply Chain Success

The article discusses the impact of supply chain disruptions and the potential benefits of nearshoring, particularly in Mexico, for U.S. importers.

Global Shift Toward Supply Chain Localization and Reshoring Gains Momentum
Global Shift Toward Supply Chain Localization and Reshoring Gains Momentum

The global shift towards supply chain localization and reshoring is gaining momentum as geopolitical tensions, trade issues, energy security concerns, and the pandemic have exposed vulnerabilities in the global supply chain system.

FourKites: Nearshoring Shifts Trade Lanes from China to Mexico
FourKites: Nearshoring Shifts Trade Lanes from China to Mexico

Nearshoring, driven by trade and political tensions with China, is gaining momentum as U.S. companies invest in minimizing supply chain disruption.

Growing Nearshoring Trend Intensifies Among US Companies
Growing Nearshoring Trend Intensifies Among US Companies

US companies are increasingly embracing nearshoring as a response to the pandemic and tightening sanctions.

Expansion into Mexico: Redwood and Blue Grace Logistics Extend Operations
Expansion into Mexico: Redwood and Blue Grace Logistics Extend Operations

Both logistics companies are expanding their operations in Mexico in response to increased demand from shippers.

Reshoring of Production from Asia to North America Accelerates, Report Finds
Reshoring of Production from Asia to North America Accelerates, Report Finds

According to Kearney’s 2022 Reshoring Index, 96% of US CEOs are reshoring, already reshored, or considering it.

Differences Between Reshoring and Nearshoring
Differences Between Reshoring and Nearshoring

Nearshoring and reshoring are two strategies used by companies to manage their supply chains and production processes.

India is the number one replacement for manufacturers pulling out of China
India is the number one replacement for manufacturers pulling out of China

The ongoing trade tensions between the US and China, as well as the border disputes between India and China, have led to a push for diversification of supply chains and a search for alternative manufacturing destinations.

Phillips Industries is increasing its presence in Mexico
Phillips Industries is increasing its presence in Mexico

While pulling out of China, the U.S.-based products line are being funneled into the 500,000 square-foot manufacturing campus in Arteaga, Mexico.

Asia’s labor cost advantages in manufacturing can be fought with investments in AI domestically
Asia’s labor cost advantages in manufacturing can be fought with investments in AI domestically

AI can be used to optimize supply chain management, reducing lead times and increasing efficiency in the movement of goods between manufacturing facilities and warehouses.

Best-value country sourcing should consider more than just the cost
Best-value country sourcing should consider more than just the cost

While cost is an important factor, there are many other factors that can impact the overall value of a sourcing decision, such as lead time, quality, risk, and sustainability.

El Salvador, Guatemala, and Honduras win $300 million investment in Target infrastructure
El Salvador, Guatemala, and Honduras win $300 million investment in Target infrastructure

The massive retailer is expanding its relationship with vendors in Central America as part of Vice President Kamala Harris’ “Call to Action for Northern Central America”.

Weighing the pros and cons of reshoring
Weighing the pros and cons of reshoring

Supply Chain Brain tackles this topic with Dan Dreyfus and Bob Bowman - is this shift toward re-shoring for the betterment of the supply chain?

If you’re looking for low-cost, stop looking at China
If you’re looking for low-cost, stop looking at China

Once paraded as the best option for cheap labor in the manufacturing sector, China’s workers have become more skilled and less poverty-stricken.

The complicated mission to restore U.S. mining for battery materials is underway
The complicated mission to restore U.S. mining for battery materials is underway

The U.S. has significant domestic reserves of many of the minerals used in battery production, including lithium, cobalt, and nickel.

As China loses supply chains, other Asian countries step up to take their place
As China loses supply chains, other Asian countries step up to take their place

India, Vietnam, Thailand, Malaysia, and Bangladesh are all scrambling to replace China’s top spot as the manufacturing capital of the world after strict Covid-19 policies are sending global companies whirling.

The Reshoring Initiative is reporting the reshoring trend was stronger than ever in Q3
The Reshoring Initiative is reporting the reshoring trend was stronger than ever in Q3

While we’re assuming there’s no conflict of interest in this report, the group is claiming that due to the business decision, 350,000 jobs were announced in 2022.

Mexico welcomes a new Tesla manufacturing plant
Mexico welcomes a new Tesla manufacturing plant

Santa Catarina in Monterrey city, the capital of Nuevo Leon state, is to be the home of the newest electric vehicle assembly plant.

U.S. plastic manufacturing is back on the up and up
U.S. plastic manufacturing is back on the up and up

After twenty years of falling by the wayside, the United States is reclaiming an advantage over China as plastic products are brought back to be produced domestically.

North America’s restoring trend is pulling operations out of China and investing in Mexico
North America’s restoring trend is pulling operations out of China and investing in Mexico

But is it a move that is going to pay off? Mexico incurred an investment of $17.2 billion since January of this year, boasting a growth of 25.5% in comparison to the same time frame in 2021.

American companies are nearshoring at a rapid rate and where China loses, Mexico gains
American companies are nearshoring at a rapid rate and where China loses, Mexico gains

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.

U.S. soil welcomes back manufacturing from overseas
U.S. soil welcomes back manufacturing from overseas

U.S. companies are bringing workforces and supply chains back to American soil at significant rates.

Jennifer Joslyn
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