Meet the new Nearshoring trend

During the pandemic, many companies that exported saw their production affected, there were even some failures in their processes that they had not previously noticed. As a result, today we see how foreign trade is carrying out some practices to optimize their supply chains, among they nearshoring.

In this article we show you what this new foreign trade trend is and how it develops in Mexico.

Nearshoring is the outsourcing strategy by which a company transfers part of its production to third parties that, despite being located in other countries, are located in nearby destinations and with a similar time zone.

Did you know how nearshoring is related to the construction sector?

According to a Statista study on the suppliers of imports in Mexico in 2019, we can see that a little more than 45% came from the United States and almost 30% from China, Japan, Germany and South Korea.

With these percentages, it is concluded that imports can be optimized. With the COVID-19 pandemic, offshoring logistics was diminished, especially when there is exclusivity in providers or when they are located in the same country.

Now, we can talk to you about the positive of this for the construction sector, by selecting Mexico as a country to develop its production, by companies from other countries, such as: China, Japan, Germany and South Korea, increases the management and requests for the construction of industrial buildings.

The previous aspect about the industrial buildings that are required for companies that recruit labor at a low cost in this country, is one of the most important for the construction sector, since after the pandemic there were changes that affected the movement of productions and shipments of products from companies such as Amazon, Mercado Libre, among others.

| We recommend you read: When will Amazon Go arrive in Mexico? This is what we know.

Due to these changes, there was an increase in the construction of these spaces that from now on will become a trend, which will attract investment from other countries to Mexico, which will help different sectors such as the one in which GEG is developed, and with that, it will generate more jobs and greater requisition of materials among others.

It is for this reason that organizational resilience is making more and more companies opt for the practice of nearshoring not only in Mexico and the United States, but also in the rest of the American countries.

The world’s largest importer is in America: The United States, and although China has been one of the largest suppliers to the neighboring country for many years, relations between these two countries are increasingly declining.

Faced with this situation, Mexico has been gradually gaining ground, and today we find ourselves in a totally favorable scenario for more companies in the United States to adopt nearshoring and focus on our country.

These are the factors that favor nearshoring between Mexico and the United States:

  • The difficult relations between China and the United States.
  • The T-MEC, which facilitates trade between our country, the United States and Canada.
  • The proximity of the two nations.
  • The low labor costs of our country.
  • Our fast and secure supply chains.
  • The good performance of the national industry, especially in the automotive sector.

The search for economic recovery has forced foreign trade, so affected by the pandemic in 2020-2021, to find alternatives to optimize production chains and, in this way, has found in nearshoring one of the most advantageous solutions. Therefore, perhaps if your company has not yet considered this practice, you can be sure that it will bring you many benefits.

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