Supply Chain Management
Nearshoring in Mexico and Latin America: Challenges, Opportunities and Examples
20+ years ago, China and other Pacific Rim countries were considered global manufacturing hubs.
It made economic and competitive sense to offshore in one of these countries, as production costs were so low that they offset the added costs of doing international business. However, conditions have been changing recently, and many businesses are now looking to bring their supply chain closer to home.
Nearshoring in Mexico
In 2023 Deloitte released a report on nearshoring in Mexico, highlighting it as an emerging trend for businesses looking to move production closer to consumers, reduce costs and avoid logistical setback. It can be argued, however, that nearshoring is not really a new trend, as Mexico was able to grow its exports from 6-11% between 1994 and 2000 based on its dealings with the North American market.
What’s clear is that nearshoring in Mexico continues to increase in popularity in 2024 and beyond.
In this report we explore the current state of play, the benefits of nearshoring, the current challenges nearshoring in Mexico presents, and the other Latin American countries that are garnering global attention as potential procurement hubs.
Get in touch
For a conversation about your organisation’s hiring strategy in 2025, please don’t hesitate to get in touch.
Kurt Pohle | Associate Partner | Industrials | LATAM
T: +1 646 902 9051 | E: kurt.pohle@weareprocogroup.com | Connect on LinkedIn
Sebastián González | Principal | Industrials | LATAM
T: +52 55 4124 0433 | E: sebastian.gonzalez@weareprocogroup.com | Connect on LinkedIn
