Nearshoring is an excellent opportunity for your business if:

1. You need to build a new department or extend the existing one.
2. You get to use to the remote way of working.
3. You expect to save costs.
4. You know what you are aiming for.
5. You expect consistent quality.
6. You don´t compromise quality standards.
7. You are searching for experienced passionate specialists.
8. You don´t want to waste time on hiring.
9. You want your time available in a real-time.
10. You are for the fair hour-rates.

Mexico has been an attractive base for manufacturing for decades, but data indicates that more U.S.-based companies are focusing on “nearshoring” operations in Mexico than never before. Global management consultancy Kearney reports in its seventh Reshoring Index a significant trend in sourcing manufactured goods from Mexico. While imports from Mexico have risen steadily since 2009, Kearney noted a $13 billion increase in imports from Mexico to the U.S. in 2019 alone.

Kearney’s research shows that as early as 2016 more than half of U.S. companies with manufacturing operations in Mexico had moved production there from other parts of the world specifically to serve the U.S. market. “The U.S.-China trade war and the ratified U.S.-Mexico-Canada-Agreement have accelerated production flow to Mexico”. The definitive trend in the industry now is regionalization.

The McKinsey Global Institute reported in 2019 that “companies are increasingly establishing proximity to demand”. Based on research of 23 global value chains accounting 96 percent of global trade, the firm notes that the “intraregional share of global goods trade has increased by 2.7 percent points since 2013… Regionalization is most apparent in global innovations value chains, given their need to closely integrate many suppliers for just-in-time sequencing”.

It’s a shift that’s being seen across numerous manufacturing sectors, driven by upheavals to the supply chain. While some companies are weathering today’s trade disruptions, others are beginning to recognize that a more regionalized approach to manufacturing may provide long-term resilience as well as low-cost productions.

Nearshoring provides many of the cost benefits of offshoring –with labor costs being chief among those benefits- but without the logistics and geological challenges. The most apparent benefit comes though reduced shipping costs and lead times. Consider that if typically costs about $16,000 USD to ship a 40-foot container to the U.S. from China and take five weeks to arrive. To send the same shipment from Mexico would cost $4,800 USD and take days. Those shipping costs drop further for manufacturers who are able to take advantage of the minimis shipments from Mexico under Section 321 of the U.S. Code of Federal Regulations. Section 321 sets an $800 USD minimum value on shipments allowed into the U.S. duty-free.

It’s also much more cost-effective for travel to visit operations in Mexico versus other countries. This can give executives more quality oversight into complex processes. However, too many Southeast Asian Countries, Mexico has a significantly more advanced manufacturing supply chain to support sophisticated industries, from automotive to aerospace to electronics manufacturing. As a leading location for manufacturers, it has long attracted component suppliers to its various regional manufacturing hubs.