Juan
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In the wake of the pandemic, many American companies are reconsidering the risks of relying on Chinese factories for their goods and services. Many have turned to a much closer neighbor—Mexico. The country offers an attractive option as it is located close enough to the United States that shipping times are drastically reduced, while still being far enough away that it is not subject to the same economic and political tensions as China. Let’s explore why more American companies are turning to Mexico during these uncertain times.
Geographical Advantages
The main factor that makes Mexico an attractive option for American companies is its proximity to the United States. Shipping a container full of goods from China generally takes one month, but this time frame can double or even triple during periods of heavy disruption due to the pandemic or other events. In contrast, factories in Mexico and retailers in America can be bridged within two weeks. This means businesses can reduce their shipping time from weeks or months down to days, leading to faster turnarounds and potentially lower costs.
The Economic Benefits
The advantages of moving production closer to home are also reflected in the numbers. During the first 10 months of 2020, Mexico exported $382 billion worth of goods to the United States—an increase of more than 20 percent compared with 2019 figures—according to U.S. census data. Overall imports from Mexico have grown by over one-fourth since 2018 as more companies shift business away from China and towards our southern neighbor. Moreover, Mexican wages remain relatively low compared with those in other parts of North America, making them an attractive option for labor-intensive industries such as apparel manufacturing.
Political Stability
Finally, there is another important factor that must be considered: political stability. Although tensions between Washington and Beijing have been growing in recent years, Mexico has maintained strong diplomatic ties with both countries since at least 1994 when NAFTA was signed into law by all three countries involved (U.S., Canada, and Mexico). As a result, Mexican businesses benefit from relatively low tariffs on goods exported either north or south of its borders compared with those faced by its Chinese counterparts when trading with America. This provides an additional incentive for U.S.-based firms looking for reliable trading partners that won’t get caught up in geopolitical disputes like those experienced between China and America over recent years..
So many advantages over China
With so many advantages over Chinese supplier, shipping times, higher quality goods produced under better working conditions (with lower wages), and greater political stability—it’s no wonder American businesses are increasingly turning away from their Asian suppliers towards those just across our border in Mexico for their supply needs in 2021 and beyond! The move towards Mexican suppliers could not only help companies save money but also provide them with peace of mind about their production process going forward — something which has become increasingly valuable during this uncertain time period where disruption is a constant threat..
Geographical Advantages
The main factor that makes Mexico an attractive option for American companies is its proximity to the United States. Shipping a container full of goods from China generally takes one month, but this time frame can double or even triple during periods of heavy disruption due to the pandemic or other events. In contrast, factories in Mexico and retailers in America can be bridged within two weeks. This means businesses can reduce their shipping time from weeks or months down to days, leading to faster turnarounds and potentially lower costs.
The Economic Benefits
The advantages of moving production closer to home are also reflected in the numbers. During the first 10 months of 2020, Mexico exported $382 billion worth of goods to the United States—an increase of more than 20 percent compared with 2019 figures—according to U.S. census data. Overall imports from Mexico have grown by over one-fourth since 2018 as more companies shift business away from China and towards our southern neighbor. Moreover, Mexican wages remain relatively low compared with those in other parts of North America, making them an attractive option for labor-intensive industries such as apparel manufacturing.
Political Stability
Finally, there is another important factor that must be considered: political stability. Although tensions between Washington and Beijing have been growing in recent years, Mexico has maintained strong diplomatic ties with both countries since at least 1994 when NAFTA was signed into law by all three countries involved (U.S., Canada, and Mexico). As a result, Mexican businesses benefit from relatively low tariffs on goods exported either north or south of its borders compared with those faced by its Chinese counterparts when trading with America. This provides an additional incentive for U.S.-based firms looking for reliable trading partners that won’t get caught up in geopolitical disputes like those experienced between China and America over recent years..
So many advantages over China
With so many advantages over Chinese supplier, shipping times, higher quality goods produced under better working conditions (with lower wages), and greater political stability—it’s no wonder American businesses are increasingly turning away from their Asian suppliers towards those just across our border in Mexico for their supply needs in 2021 and beyond! The move towards Mexican suppliers could not only help companies save money but also provide them with peace of mind about their production process going forward — something which has become increasingly valuable during this uncertain time period where disruption is a constant threat..
