Nearshoring en Mexico
One of the concepts that has gained popularity in recent years is nearshoring which Translated into Spanish NearShoring in Mexico means "close subcontracting in Mexico"
Nearshoring is a strategy that involves moving a company's business operations such as manufacturing, customer service, or software development to nearby countries rather than more distant locations.
Advantages of nearshoring in Mexico:
a) Geographical proximity: Mexico shares borders with the United States, one of the largest consumer markets in the world. This geographical proximity facilitates logistics and reduces delivery times, resulting in greater operational efficiency.
b) Competitive costs: Mexico offers competitive labor costs compared to developed countries, which allows companies to reduce their production and logistics costs without compromising quality.
c) Favorable trade agreements: Mexico has a wide network of trade agreements, such as the Agreement between Mexico, the United States and Canada (T-MEC), which provides tariff benefits and facilitates trade with other countries in the region.
d) Logistics infrastructure: Mexico has a well-developed logistics infrastructure, including seaports, international airports, and an extensive highway and rail network, which facilitates the efficient movement of merchandise.
Attractive sectors for nearshoring in Mexico:
a) Manufacturing: The manufacturing sector in Mexico has experienced significant growth due to nearshoring. Companies can establish production plants in Mexico to quickly supply the United States market and much of South America.
b) Technology: Mexico is emerging as a technology center, attracting investment in the information and communication technology sector. Technology companies can benefit from local talent and proximity to North American markets.
c) Customer Service: Many companies have moved their customer service centers to Mexico due to the cultural and linguistic proximity to the United States, which allows for more fluid communication and a better experience for customers.
Challenges and considerations:
a) Supply chain management: Although Mexico offers many advantages for logistics, it is essential to establish efficient and reliable supply chain management to ensure a smooth operation.
b) Legal and regulatory aspects: Companies must understand and comply with Mexican regulations and laws regarding imports, exports, labor contracts, and protection of intellectual property.
c) Geopolitical risks: As in any other country, there are geopolitical and economic risks that may affect operations. It is important to carry out a thorough risk analysis before making a decision
Curious fact:
The term "nearshoring" was coined by the British consultancy Deloitte in the 1990s. However, no single person is credited with inventing the term, as it arose as a response to the growing practice of moving business operations to nearby countries instead of more distant locations. Since then, the term has been widely used in business and logistics.
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Blog source: https://transvectologistics.com/blog/nearshoring-en-mexico
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