Director level Program Management Professional with Integral Experience in Process Excellence, Sourcing, Sales, Supply Chain, Lean-Six Sigma, Quality, and IT Systems Development within the lens of Continual Improvement
Really interesting article talking about what's been happening in Mexico over the last ~4-7 years (Significant escalation of activities since COVID, but initial start during the inception of the Trump China Tariffs). Tight Capital, more expensive labor, and a less experienced workforce (problem solving, creative manufacturing methods, technical know-how, LEAN mindset) make this a much more difficult proposition to transition from entrenched Asian sources who have been able to manage costing and provide lots of technical value over the years to B2B partners globally. If you are expecting to pick up a tool from Asia, move it to Mexico, and expect the same results, think again. You will need dedicated resources to ensure you don't experience ballooning costs of product and quality as you transition.
Has your company thought about nearshoring lately? Here at MES, we have noticed a trend where customers in the United States are intrigued by the transition to working with closer plants since it can reduce costs and provide faster delivery times. However, weighing the pros and cons of such a big move. We can help with this! Here are some key challenges for most Mexico-based manufacturers: ✅USD to Pesos Exchange Rate ✅High Borrowing Costs ✅Inflation in Mexico ✅Rising Labor Costs These main challenges and more are discussed in our recent blog titled “Is Your Nearshoring Initiative Stalling?” To learn more about this topic, please click the link below to view our latest blog! https://bit.ly/3RFYvYj #nearshoring #mexicomanufacturing #diecasting #investmentcasing #forgings
Director of Global Marketing at MES, Inc
6moVery insightful, thanks for sharing Bhavin Shah, Six Sigma Black Belt 👍