Nearshoring Gives Advantage in Supply Chain Crisis

Bringing production closer to home is a more attractive alternative to an outsourced business model. While outsourcing offers many benefits, including access to a more diverse skill set, proximity to raw materials and lower labor costs, multiple supply chain crises have combined to make suppliers and retailers are at a disadvantage today.

Offshoring thrives on outsourcing supplies to technologically advanced areas such as China and the United States. However, soaring demand and restrictions caused by COVID-19 have caused major delays and most manufacturers and retailers have been affected.

Most companies are looking at nearshore services to optimize their operations and supply chains. Nearshoring ensures faster time to market and faster shipping from manufacturer to customer. On top of that, suppliers and retailers also acknowledge the ease of operating in a more convenient time zone.

Nearshoring and reshoring are not the same thing.

Nearshoring is the practice of establishing partnerships with suppliers, manufacturers and other necessary entities in the supply chain in countries close to the company in question.

Outsourcing, on the other hand, involves bringing manufacturing and manufacturing services back to the country or region in which the business operates.

As global supply chains continue to face a number of cross-border trade challenges – especially when it comes to importing items from Asia – many companies are outsourcing operations, investing millions of dollars to establish factories near their target market. For example, many manufacturers whose primary customers reside in the United States and Canada are now setting up factories in Mexico.

Many of our Shelter Program partners offer contract manufacturing services and CPI is here to help you connect with them. We have a wide range of Mexico industries such as plastics, aerospace, medical, electronics and telecom CMOs ready to discuss your project. 

If you are looking for contract manufacturing companies in Mexico, raw materials, or a new supply chain, then look no further. Mexico has Tier I, Tier II, and Tier III suppliers that CPI (Co-Production International, LLC.) can help connect you with.

Contact us with any questions (855) 480-0837