I recently had the opportunity to
meet with the Ambassador of Mexico to the United States, Mr. Carlos Sada, in
what was a very private and candid meeting near Source One’s office in Chicago.
As the only representative of the procurement function and the only consultant
in the room, I found the discussion extremely engaging and surprisingly timely
to my company’s nearshoring undertakings.
Aside from the privilege that it
was to sit and chat with such a prominent individual, the meeting was full of
interesting content, especially when the discussion revolved around the industrial
and economic development in Mexico and its significance to American businesses. You can learn more about his visit here:
Ambassador Sada pointed out that
“numbers don’t lie” and that the US-Mexico relationship encompasses one of the
most dynamic and economically significant regions in the world, which is
primarily fueled by close ties between businesses - from soft commodity trading
to the more recently trending automotive and aerospace industries that not only
create hundreds of thousands of jobs in the region but that have become the
foundation for many other industries to flourish.
As part of Source One’s Nearshoring
offering, we’ve many times reiterated that exploring Mexico as a hub of
competitive labor, emerging supply base, and business prospecting is no longer
a matter of “if” but of “when” for US companies; and my conversation with the
Ambassador reiterated our belief. Through Source One’s network of partners
we’ve helped develop synergies between local governments, academic programs and
businesses to orchestrate a sustainable environment that fosters opportunity
for American and international companies who seek to manufacture better quality
products at competitive costs to position themselves not just in the North
American market but worldwide.
Ambassador Sada’s perspective is
both optimistic and cautious. He sees untapped talent and flourishing opportunity
for businesses to initiate or expand operations in Mexico that could sustain long
term growth for companies on both sides of the border. At the same time, he
stressed that collaboration is key to finding competitive business partners and
optimizing current relationships. He also indicated that the political climate
surrounding the democratic process in the US will continue to play a role
post-election but that private businesses will continue to be a main driver for
success, and so it is critical for companies on both sides to diligently
approach prospects.
And I agree, it is not uncommon
for Source One’s customers to ask us to define the risk factors in pursuing nearshoring
efforts. Many companies are concerned about the true costs of labor, the
quality of the products, and stability of the local governments to provide a
safe business environment, and when the international trade conditions are
challenged, an additional variable is added to the equation of “perception”.
Reality however, is sometimes much different, and we’ve been successful in
proving to our clients that finding suitable suppliers who can produce
innovative and quality products is not only viable, but highly probable.
Therefore, it is vital for organizations to work together and manage risk
adequately; by pursuing diligent strategic sourcing efforts, risks can be
identified and mitigated - and successful business relationships that add value
to both economies are created.
You can learn more about our
nearshoring effort in our website: http://www.sourceoneinc.com/consulting-tools/sourcing-and-procurement-services/low-cost-country-and-nearshoring/
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