Yellow Papers / Why is Mexico a good option 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 appearance of the COVID-19 pandemic and the consequent imbalances in supply chains and that has continued to grow to this day.

This activity is, for numerous reasons, an increasingly attractive for all those companies that are considering moving their operations to Mexico. Today, numerous American and Canadian companies have chosen to move their operations to the Aztec country instead of Asian countries such as China or India.

But what are its benefits?

1. Geographical proximity. This means faster delivery times and lower transportation costs.

2. Mexico has a highly qualified 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. Greater knowledge of the market. It is possible to better study demand and know the market in greater detail, something that will also allow us to adjust an offer in complete harmony with the country's demand.

4. Higher quality in products thanks to the knowledge of the market and the product on the part of the manufacturers.

5. Companies will be able to have greater contact with outsourcers: nearshoring entails 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 all those companies that are interested in Nearshoring. Specifically, the automotive and machinery industry in Mexico has proven to be particularly attractive for companies seeking to reduce costs and improve the efficiency of their production. But not only that, foreign direct investment has also increased thanks to nearshoring, contributing to the country's economic growth.

In order to implement all of the above, it is very important to implement it effectively considering all the consequences and closely monitoring the entire development. From ieTeam México we can support in this process all those companies that are evaluating this strategy, guiding them throughout the entire process and ensuring that their operations are transferred successfully.