Company Opens Plant in Mexico Using Nearshoring Strategy

According to Deloitte, Mexico is strategically attractive for nearshoring, mainly because of its proximity to one of the most important markets in the world: the United States, and because of the facilities it has to bring products to this territory, thanks to the Mexico, United States and Canada Agreement (T-MEC).

A company dedicated of the manufacturer of physical, electrical and network infrastructure solutions seeks to solve the supply difficulties that persist in the market through the nearshoring strategy, which is to produce close to the end market.

The company opened a new plant in Apodaca, Nuevo León, where it will manufacture copper and fiber optic cabling, whose materials will be transported by land to the United States, its main market. The new plant is located in a place that facilitates exports to the U.S.

The disruption in supply chains during the sanitary emergency caused a rise of up to 400% in maritime transportation, and part of this inevitably passed on to the price of products imported from Asia by sea (up 5%), in addition to delays in deliveries.

The Inter-American Development Bank (IDB) assures that the country could be the greatest beneficiary of nearshoring in the region, with a potential to obtain up to 35,300 million dollars a year, thanks to the export of goods, which represents almost half of the 78,000 million dollars a year that Latin America and the Caribbean could generate following this business strategy.

When considering nearshore manufacturing, your expansion and site selection teams can benefit from collaborating with a Mexican shelter company such as Co-Production International. CPI has the know-how and contacts to assist you in making the best decisions for your Mexico manufacturing expansion project.

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