Nearshoring to Mexico: Why Companies are Moving Closer to Home

Why nearshore to Mexico? In recent years, China and Mexico have competed to be the prime hub location for logistics operations for North American companies. While China still boasts advantages for off-shoring, more and more companies are realizing the power of moving the supply chain closer to home; to Mexico.

Supply Chain models have drastically evolved since the onset of off-shoring practices decades ago. Consumers now demand nearly-immediate delivery of products and perceive empty shelves as sign of poor supply chain management. Seeking better control and efficiency of operations, North American companies large and small are nearshoring their supply chain to Mexico.  Among those leading the charge to Mexico: General Electric, Ford and Microsoft.

Mexico proves to be a major Nearshoring opportunity for many reasons including:

1.     Reasonably-priced labor
2.     Less expensive shipping as compared to overseas
3.     Geographically easier to visit and evaluate suppliers

Next month, Source One Vice President of Operations William Dorn and Senior Project Manager and Latin America sourcing expert Diego De la Garza will be presenting at the Institute for Supply Management Annual Conference on the topic of Nearshoring to Mexico. Attendees will gain an understanding of the status of supply chain today, including the challenges companies face outsourcing manufacturing, as well as the process and benefits of nearshoring to Mexico. Source One is also hosting discussions at Booth #542.  Hope to see you there!