Many U.S. manufacturers with highly intensive processes are feeling a cost crunch, and Mexico could be the solution they’re looking for. Manufacturing industries of all kinds are moving part of their operations south of the border in order to reduce costs, receive more convenient shipping, and make travel to and from their facilities much easier than manufacturing in China.
Many companies are likely to benefit from this nearshoring opportunity, but there are a few industries that have seen recent surges, in addition to the top mainstays that rely heavily on nearshoring to Mexico as part of their business operations.
For decades, powerhouse industries including automotive, aerospace, information technology, medical device manufacturing, and electronics have maintained good trade relationships with Mexico as part of a cost-effective supply chain solution. Among these companies are global brands including Ford Motor Co., Honeywell, Toyota and Samsung to name a few. These industries are able to stay competitive by taking advantage of the convenient logistics, highly-skilled workforce, and more cost-friendly operations and labor Mexico has over China. In more recent years, other industries have seen the advantages of nearshoring to Mexico as well.