Mexico Continues to be Top Choice for Manufacturing ‘Near-Shoring,

Posted in: Blog on June 7, 2012

NEW YORK, June 4, 2012(Yahoo Finance) —

Mexico USA near shoringReflecting continued rising labor and other manufacturing costs for imports from faraway places like China, “near-shoring” continues to be seen as an opportunity to serve U.S. demand by about half of C-level and other senior executives of manufacturing-oriented companies, and while 35% of that number view manufacturing inside the U.S. as the most attractive choice for such re-sourcing, up from 21% in a similar survey a year ago, 50% view last year’s top choice, Mexico, as the No. 1 choice again this year. That’s according to a survey of C-level and other senior executives in manufacturing-oriented companies that sell into the U.S. market released today by AlixPartners, the global business advisory firm.
“A lot has been written of late about America’s manufacturing rebound, and there certainly has been a very impressive rebound; however, Mexico still remains the near-shoring locale of choice for companies looking to overcome the higher costs of doing business today in places like China,” said Foster Finley, managing director at AlixPartners and co-lead of the firm’s Transportation Practice. “As manufacturing costs have increased in China and elsewhere in Asia, the cost and time factors involved in shipping goods across vast distances are magnified and, whether it’s in Mexico or the U.S., any company that’s not at least considering alternative manufacturing sources closer to their home market is certainly missing an opportunity.

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