Yellow Papers / Why is Mexico a good choice for Nearshoring your company?

Are you looking for a cost-effective way to improve your supply chain and increase your company's efficiency? nearshoring in Mexico may be the solution you need!

What do we mean when we talk about Nearshoring? It is the term we use to describe the process of moving a company's services or production from a distant country to a closer one. An activity that emerged due to the emergence of the COVID-19 pandemic and the resulting imbalances in supply chains and has continued to grow to this day.

It is, for many reasons, a growing attraction for companies considering relocating their operations to Mexico. Today, many US and Canadian companies have chosen to move their operations to Mexico rather than to Asian countries such as China or India.

But what are the benefits?

1. Firstly, geographical proximity. This means that delivery times are faster and transport costs are lower.

2. Secondly, Mexico has a highly skilled workforce and a stable economy. In addition, the free trade agreement between Mexico, the United States and Canada (NAFTA) facilitates trade between the three countries.

3. A better understanding of the market. It is possible to better study the demand and know the market in greater detail, which will also allow us to adjust our supply in complete harmony with the country's demand.

4. Higher product quality thanks to the market and product knowledge of the manufacturers.

5. Companies will be able to have greater contact with outsourcers: nearshoring leads to greater control of production and less time in the decision-making process, as communication is much faster.

All this has made this country the most profitable option for companies interested in nearshoring. In particular, the automotive and machinery industry in Mexico has proven to be particularly attractive for companies looking to reduce costs and improve production efficiency. Not only that, but foreign direct investment has also increased thanks to nearshoring, contributing to the country's economic growth.

To be able to put all of the above into action, it is very important to implement it in an effective way considering all the consequences and closely monitoring the whole development. From ieTeam Mexico we can support in this process all those companies that are considering this strategy, guiding them through the whole process and making sure their operations are successfully relocated.

Shall we talk?