As a result of the covid-19 pandemic, supply chains experienced significant problems, which made investors choose to transfer part of their production to other countries.

In that sense, the United States considered that Mexico is the perfect place to open production facilities and shorten delivery routes, both because of the direct proximity of both countries and because of the free trade agreement between Canada, the United States and Mexico (TMEC). , which facilitated trade in the region.

But even though labor in Mexico is not that cheap when compared to countries like China, the positioning of companies in Mexico generates significant cost savings derived from the shortening of delivery routes.

On the other hand, transport risks are almost completely eliminated and communication problems generated by time differences are minimized.

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All these elements have allowed manufacturing in Mexico to reach a high level of specialization, capacity and experience, which has allowed the automotive, aerospace, electronics and medical technology industries to establish themselves in Mexico, which in the future will attract new investments.

The complex management and dynamics of supply chains operating at different levels of the global economy pose a number of risks, including the interdependence of the different parts of a supply chain system, which can lead to difficulties.

In addition, the different management and organization of each entity in its operations often causes conflicts between the chain actors. One of the solutions implemented to improve the supply chain is nearshoring.

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This strategy allows companies to transfer part of their production to another country, similar to traditional outsourcing. However, the distinctive feature of nearshoring is that the location becomes closer.

Until recently, Asian countries were considered the most important and rewarding destinations. Despite this, the trade conflicts between China and the United States created a significant problem for trade between the countries.

With the arrival of the covid-19 pandemic, containment measures were adopted in order to prevent the spread of the virus.

In this sense, the operation of the supply chains were strongly impacted. In addition to this, there were failures in the maritime routes that caused the shortage of supplies throughout the world.

For this reason, nearshoring has become a fundamental strategy to continue with the processes and supply of supplies in the world.

In Solili you can consult industrial warehouses available in Ciudad Juárez, Tijuana and Mexicali

Original note