Mexico Manufacturing Ideal For Top Performers

Mexico Manufacturing continues to be a very large draw for global top performers looking to mitigate risk as multinational industry leaders.  Why?  Because knowing it’s a unpredictable world and planning for possible disruptions only makes good business sense.  Any supply chain can be affected by factors such as natural disasters, oil prices, political instability, or sovereign debt.  Even in the face of Mexico’s real and perceived narco-violence, it has become prudent for Mexico manufacturers to offer a sensible near-shore production capability as companies plan for multiple contingency layers.

For industry leaders, a new ‘norm’ has been slowly establishing itself as corporations sign multiple contracts with several service providers across multiple routes to mitigate potential disruption and loss.  This trend, of course, does not imply an exodus from Chinese manufacturing even in the face of their double-digit wage inflation and distance.  On the contrary.  Instead, top performers are manufacturing from multiple locations, with Mexico manufacturing being the best near-sourcing choice as sluggish wages and a weakened currency against the U.S. dollar continues.  Of course, to maintain this advantage Mexico would be wise to get a handle on their criminal activity lest companies seek other Latin alternatives.  Some have suggested a co-managed U.S./Mexican border region where a number of companies already are operating.

Source: http://www.siteselection.com/issues/2011/may/mexico-advantage.cfm


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