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


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🇲🇽 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. Pulling supply chain activities away from China is a move based on the insecurity of the nation’s supply chain stability. The risk of transportation costs is a major function of hesitancy, with the transfer of ocean freight containers from Shanghai to Los Angeles yo-yoing since the early days of the pandemic. While outsourcing to China, companies also must consider rising labor costs, political tensions, and intellectual property issues in the form of security.

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