Survey: Mexico Still Top Choice for Manufacturing Near-Shoring
05/09/2011
Global global business-advisory firm AlixPartners LLP conducted the online survey of manufacturing firms between January 24 and April 8, 2011. The majority of the businesses (87 percent) are considered international companies as they own or operate operations outside the United States.
Already nine percent of executives surveyed already near-shore their manufacturing operations, while 33 percent of them indicated they plan to do the same within the next three years. Only 19 percent said they've have experienced supply-chain disruptions in Mexico because of security issues. Within the next five years, 45 percent said they expect to see "modest improvement" in safety/security there, while five percent believe there will be "dramatic" improvement and 29 percent think the situation will not change at all.
"Despite security concerns in Mexico, the country has a lot of appeal right now because of its proximity to North American demand and the continuing need of many companies to improve their working-capital positions," said Chas Spence, a director in the Latin American Manufacturing Practice at AlixPartners. "That appeal could grow if fuel prices continue to rise globally."
Companies surveyed gave three key advantages expected to be gained from near-shoring in Mexico: improved speed-to-market times, reduced freight costs, and lower inventory costs. Other reasons: time-zone benefits (e.g., improved management coordination) and better "cultural alignment" with North American managers.
Project Announcements
Jel Sert Company Expands West Chicago, Illinois, Manufacturing Operations
06/16/2025
Technomics Expands Arlington County, Virginia, Operations
06/16/2025
Conveyor Technology Expands North Little Rock, Arkansas, Manufacturing Operations
06/16/2025
Amazon Plans Salem Township-Falls Township, Pennsylvania, Operations
06/16/2025
Sentio BioSciences Expands Maryland Heights, Missouri, Production Operations
06/14/2025
Titan Mechanical Plans Defiance, Ohio, Fabrication Operations
06/12/2025
Most Read
-
First Person: Joe Capes, CEO, LiquidStack
Q2 2025
-
The Legal Limits of DEI in Incentives Agreements, Hiring, and Contracting
Q2 2025
-
39th Annual Corporate & 21st Annual Consultants Surveys: What Business Leaders and Consultants Are Saying About Site Selection
Q1 2025
-
Top States for Doing Business in 2024: A Continued Legacy of Excellence
Q3 2024
-
Get Your Mega Site ‘Project Ready’
Q2 2025
-
Navigating the new era of SCIF construction
Q1 2025
-
Why Cold Storage May Defy the Tariff Crunch
Q2 2025