Softlanding. Yes, is convenient to invest in Mexico
10 de January de 2023
Regarding your supply chain, it is interesting to read this text from the New York Times: “‘OK, Mexico, Save Me’: After China, This Is Where Globalization May Lead.“
Surely you have heard the term nearshoring "near relocation". The concept ties in with the fact that American supply chains have traditionally been dependent on China, and the pandemic highlighted the fragility of that scheme in a faraway country, in many terms. Why do things far away if you can do them close? Avoid paying expensive freight, or using crowded ports and constant delays; better come close. Here is Mexico waiting for the transfer of production, with its promise of seriousness and efficiency.
If you are Chinese and want to be more efficient... then come close. Here we have an open country waiting for you.
The New York Times article mentions that “during the first 10 months of last year, Mexico exported $382 billion worth of goods to the United States, an increase of more than 20 percent compared to the same period in 2021. ”
This data already shows that US companies are turning to Mexico to solve various supply needs. The well-told story of uniform production, the one mentioned in the NY Times text, is proof of this.
There is a question of distance, simply geographical, of not being able to go around the Pacific Ocean, impossible to jump or go around; This is precisely where the logical decision of businessmen derives regarding what to do, where to strengthen their supply chain, what strategic partners to look for... how can I spend less gasoline? And here is Mexico. A vast, rich country, with a young and qualified labor force. Here we put some of the advantages of Mexico, in the analysis of migrating your supply chain to our country:
- Less environmental footprint.
- Thanks to free trade agreements with the United States and Canada, cross-border trade has been facilitated, with more secure supply chains.
- Lower freight cost.
- Delivery times are more reliable throughout Mexico compared to other regions of the world.
- Time zones, closeness in language and, in general, the business culture shared in the region.
- The artisan and diligent hand of the Mexican.
Regarding the challenges and changes in trends that will continue to be seen in the future, it is worth reading this article by Deloitte: "we reflect on whether, for the industry, the time has come to change course and move towards a new model based on a regional, rather than global, approach that prioritizes the use of local renewable energy over the exploitation of imported hydrocarbons.”
At Tracer México we agree on the imperative of efficiency and a green approach in global trade relations. We believe that Mexico has a lot to contribute towards a future that moves in that green direction. With our Softlanding Service in Mexico we can help you enter our country.
We also agree on the need as Mexicans to work intelligently in the training of our people, in the expansion of our infrastructure, in the continuous and comprehensive improvement of our production processes; increasing our competitiveness is imperative.
A text like this could not lack a comment on security in Mexico. It is true, the Mexican condition of "bridge" in drug trafficking perpetuates systemic problems; but the people, and in general the streets, are full of talented people, working towards the future.
Did you know that near Xico, in the state of Veracruz, on New Year's Day Italians and Dutch went on tours to buy land. They want to come to paradise to make their communities self-sustaining!
The Real Estate purchase agreement with reservation of ownership in Mexico