Establishing a local command center, carefully defining and addressing such information requirements as product descriptions, then setting up efficient supply chain lanes are three critical factors to success in Brazil, says John Miller, senior vice president, global business development, Flash Global Logistics. Moreover, the same formula often can be applied throughout Latin America.
The center of gravity for consumer-focused companies is subtly but unmistakably moving toward developing economies, such as Brazil, Russia, India, China and Indonesia. The middle class in emerging markets will make up 30 percent of the global population by 2020. These customers represent the future.
Improved U.S. competitiveness and rising costs in China will put the United States in a strong position by around 2015 to eventually add 2 million to 3 million jobs and an estimated $100bn in annual output in a range of industries, according to a new report by The Boston Consulting Group (BCG).
Mexico, the United States' southern neighbor offers transportation distances a fraction of those from Asia, a labor force a good deal cheaper than domestic workers, and a country causing fewer headaches about intellectual property and other trade concerns. But in recent years, drug-related violence along the border has caused some manufacturers to be more cautious about making the move to Mexico.
The logistics group of Crowley Maritime Corp. has added less-than-containerload (LCL) cargo service to the Caribbean island of St. Maarten, via Crowley's Miami distribution center. The latter will now serve as a cargo arrival and departure service point.
Analyst Insight: The Congressional bills to implement the U.S. free-trade agreements with South Korea, Colombia and Panama and to renew the Generalized System of Preferences and Andean Trade Preferences Act have gained congressional approval and President Obama's signature, thus paving the way for the long awaited realization of the agreements and their inherent trade benefits and opportunities. Simultaneous approval highlights the challenges of managing global supply chains to take advantage of the benefits provided. - William M. Methenitis, partner, global director, and Kristine L. Price, partner, both of Ernst & Young LLP, Customs and International Trade