Nearshoring translates as the outsourcing strategy with which company transfers part of its production to third parties, to facilitate them and reduce costs, focused mainly on labor.
For a long time, the most characteristic destinations for this type of practice are China and India; However, the arrival of the COVID-19 pandemic caused many companies that depended on these countries to be affected by the interruption of supply chains, among other factors.
Mexico, having a constantly growing economy, has overcome pandemic levels, and is considered a country with a lot of attracting different industries to establish their supply chains and obtain greater benefits.
Some of the cities where nearshoring arrived since 2020 were Monterrey, Tijuana, and Querétaro. Monterrey became an attractive market since the industry model and the proximity to the United States facilitate logistics
The main industries that began to establish themselves were furniture, household appliances, medical equipment, machinery, tools, and the automotive industry.
Thanks to the commercial results with the United States and Canada, this is an excellent time to intensify the performance of the distribution channel and improve relations between neighboring countries, and thus have a positive impact on innovation and the economy.
Advantages:
- Transportation costs: shipments become cheaper compared to shipments from another country.
- Delivery time: thanks to the proximity, the transfer time is less.
- Time zone: The schedules are more aligned, so it does not affect transfers at a great level
- Trade agreements: thanks to the T-MEC, tariff payments are not made, which favors the cost of shipping
- Manufacturing: Mexico’s capacity has been developed with high quality and technology.
