Although the term “nearshoring” was patented in 1997 by the Mexican IT company SoftTek, the concept has existed for several decades. In an ever-evolving and highly competitive global trade environment, international manufacturers continually seek a leaner and more fluid conduit to enhance growth and profit margins. Shifting some or all manufacturing elements to a neighboring country with favorable trade agreements, a sustainable and easily trainable workforce, and competitive labor rates are all reasons to pursue the practice of nearshoring.
Subject to pending changes with tariffs and other potential trade restrictions, Mexico could still be an ideal location for American businesses to engage in nearshoring. With its proximity to the United States and the mutual benefits of the USMCA trade agreement (in place until 2026), corporations may see a significant advantage in working with this developing country. According to Jorge Gonzalez Henrichsen contributor to Forbes.com, “nearshoring in Mexico continues to hold immense potential for companies looking to fortify their supply chains.”
While significant strides have been made in conducting business with Mexico, the process is not without challenges. Friendly relations notwithstanding, international laws, regulatory and compliance complexities, communication barriers, and crime and corruption make nearshoring a challenge. Gravick Group understands the dynamic nature of nearshoring and is ready to deploy its team of professionals to assist your business throughout the process.
Gravick Group Makes Nearshoring Easier
Gravick Group is a network of professionals with expertise in information technology, operations, data research, strategic analysis, customs and border protection, international trade, and business.
Team members have:
- Decades of experience in navigating trade routes in the United States, Mexico, and Canada
- Decades of Customs and Border Protection experience
- Knowledge of supply chain volatility
- Current pulse on the international business climate
- Fluency in English, Spanish, and additional languages
For additional information on how Gravick Group can make nearshoring easier for your business in Mexico, contact: info@gravick.com
Sources:
https://www.weforum.org/stories/2023/02/friendshoring-global-trade-buzzwords/