Mexico an important player in near-shoring movement

08/23/2012

As more manufacturing moves back to North America, Mexico has become an important focus for companies that want to maintain a cost-competitive advantage regarding lower wages while reducing the costs associated with shipping, long inventory pipelines, and intellectual property theft.

AlixPartners’ Executives’ "Perspectives on Manufacturing on Near-Shoring," a survey of manufacturing-oriented companies that sell into the U.S. market from 15 industries, “found that Mexico has emerged as the top choice among companies considering relocating their already off-shored operations closer to home.” In fact, the survey revealed that 63% of the respondents ranked Mexico as “Attractive” for near-shoring. The U.S. ranked second (19%).

While security risks “are a clear concern among respondents, relatively few have actually experienced supply-chain disruption in Mexico,” noted the report’s commentary. And half the respondents expect that conditions regarding safety and security in Mexico will improve.
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