Podcast: Seizing Opportunity – 23 Billion Reasons Why Auto Suppliers Are Looking at Mexico
“Getting to one customer is key to getting that initial capacity established and getting the operation moving. But very quickly, they need to diversify and expand and look for other customers,” Daron Gifford, Plante Moran.
Mexico’s strong infrastructure, competitive labor costs and ideal proximity to the US market continue to fuel growth in Mexican automotive manufacturing. So how can Tier 2 and 3 suppliers leverage Mexico? A top strategic management consultant to both OEMs and suppliers discusses why the need for a broader supply base is acute, and how suppliers can leverage Mexico operations for growth.
Daron Gifford, management consulting partner with Plante Moran, explores in this interview with Entrada’s Doug Donahue:
- The pressing need on behalf of the OEMs to add suppliers within two to three years.
- Why the entry of more foreign suppliers to Mexico may actually benefit American firms.
- The importance for Tier 2 & Tier 3 suppliers to immediately focus on expansion beyond their first Mexican client.
- Creative financing options that some small-to-midsize manufacturers are implementing.