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As manufacturers look to shift production to North American, Mexico appears to hold all the cards. But is there a joker or two in the deck?
“Nearshoring” is the term for the increasingly popular practice of moving offshore manufacturing away from China in favor of locations that are closer to U.S. markets. The clear winner in this trend is Mexico: Distances are shorter, factories plentiful, labor cheaper, and the messy geopolitics of the U.S.-China relationship are absent. Still, there are some obstacles that threaten to undermine Mexico’s chances of fulfilling its promise as a manufacturing powerhouse, including a shortage of skilled labor, inadequate infrastructure, and a lack of political will at the head of government. On this episode, we weigh the pros and cons of Mexico becoming a nearshoring mecca with Jorge Gonzalez Henrichsen, co-chief executive officer of The Nearshore Company. “We are seeing an opportunity of a lifetime for Mexico,” he says, but will the country seize it? Hosted by Bob Bowman, Editor-in-Chief of SupplyChainBrain.
Show notes:
A paper from The Nearshore Company: “Manufacturing in Mexico.”
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