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Companies with ongoing off-shore production look towards Mexico as the near-shoring alternative pushed by rising salaries in Asia, increasing fuel costs and extended supply chain risks.Due to lowers costs and speed to market Mexico tops the list of options for those companies wanting to move their operations closer to home, particularly those selling to the US market, reveals a survey by The Alix Partners.
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Mexico is the top choice for nearshore manufacturing
Companies with ongoing off-shore production look towards Mexico as the near-shoring
alternative pushed by rising salaries in Asia, increasing fuel costs and extended supply chain
risks.
Due to lowers costs and speed to market Mexico tops the list of options for those companies
wanting to move their operations closer to home, particularly those selling to the US market,
reveals a survey by The Alix Partners.
Comparative Advantages
Mexico's vicinity to the North American market
translates into lower inventory and freight costs,
improved speed-to-market and better cultural alignment
with managers. According to the opinion of those polled,
Mexico is by far the number one option, ranking higher
than any other country in the Americas.
Even between the enterprises contemplating off-shoring current US processes Mexico tops the
list right above China with 43% of the preference, against 30% of the latter.
Security Concerns
It is also clear that safety remains the number one worry among those considering Mexico as
their near-shoring alternative, even when relatively few have actually had disruptions in their
operations due to security risks. Furthermore, half the executives surveyed by the firm expect
improvement in safety and security issues over the next five years showing that they believe
these risks can be overcome by the many advantages of Mexico offshore manufacturing.
Read the testimonials of Top Companies that have already established their Manufacturing
Operations in Mexico therefore gaining a competitive advantage over their competition.
By Co-Production International Inc. www.co-production.net [email protected] Toll Free: (877) 230 7989