Situation that continues to be experienced in the automotive industry, for example, due to the lack -ever decreasing- of semiconductors.
This is where the term relocation becomes relevant, and all the terms with which it is associated: nearshoring, reshoring, friendshoring either allyshoring.
What is nearshoring?
Everything worked so well that no one ever thought of a scenario like the one presented by the pandemic. And although with the trade war between the United States and China there was already talk of nearshoring, it was not until two years ago that companies and investors got down to work to shorten their production chains.
Relocation has to do with moving part of a company’s manufacturing, assembly or supply processes to a closer country or region and, if possible, with a time zone similar to that of the final consumer.
The foregoing with the purpose of facilitating the transfer of merchandise and reducing transportation costs, as well as reducing operational risks and guaranteeing the availability of products, adds the firm Mail boxes.
According to the United Nations Organization (UN), in 2021, six out of 10 cargo ships suffered notorious delays due to queues at ports for these vessels to unload.
Nearshoring is the answer to offshoringa practice that, in order to reduce costs, looks for suppliers in other destinations, generally in Asia, particularly in China, which a few decades ago was the ideal destination due to the cheap labor and aid that the government offered.
This practice was repeatedly pointed out by former United States President Donald Trump, who began to impose tariffs on Chinese imports to deal with these practices.
Nearshoring in Mexico
Mexico, due to its proximity to the United States, as well as for sharing time zones and having more than 3,000 kilometers of border with said country, becomes an ideal destination for the arrival of those companies that seek to shorten their production chains to reach faster, and without so many setbacks, to the US and North American markets, if Canada is also taken into account.
