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Supply Chain Financing
What are the main advantages of nearshoring to Mexico?
Recent trends in international logistics aim at streamlining global supply chains. Therefore, one of the most relevant trends today is Nearshoring to Mexico. These are some benefits of Nearshoring to Mexico:
Strategic Location: Mexico's strategic location provides easy access to the U.S. market, offering a competitive advantage in the global market.
Shorter Lead Times: Proximity to the United States leads to shorter lead times for product delivery, resulting in cost savings and increased customer satisfaction.
Reduced Complexity and Risks: Nearshoring to Mexico offers certain advantages over inbound freight from China, such as fewer touchpoints, less complexity, and reduced risks.
Lower Labor Costs: Lower labor costs in Mexico compared to the United States attract businesses looking to reduce operating expenses. According to Statista, manufacturing labor costs per hour in China climbed from $5.78 to $6.50 USD between 2019 and 2020, while Mexico witnessed a considerably lesser increase from $4.66 to $4.82 USD during the same time period.
Skilled Workforce: A highly educated and motivated workforce in Mexico ensures cost savings without compromising productivity or quality.
If you want to learn more about the nearshoring trend, read this article.
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