Shipper | Market updates 1 min. read
44 factories and distribution centers move out of Asia to Mexico
Nearshoring allows investors from China, Taiwan, Japan and South Korea to transfer their factories and production processes to closer locations that result in lower costs.
Advances in nearshoring prompt moves from Asia to Mexico
Due to the advances in nearshoring in 2022, a group of investors from China, Taiwan, Japan and South Korea moved 44 factories, production lines, and distribution centers from Asia to Mexico.
These investors made the decision to move these facilities for many reasons. A few being, to lessen the effects of the US-China trade war, improve the supply chain issues due to COVID-19, and the global economic recession. Nearshoring started to gain its popularity and draw about a year ago due to the same issues.
Marcos Álvarez, CEO of Market Analysis, told Forbes Mexico, “Due to the low vacancy in the main border markets, several plant expansions and the arrival of new Asian capital to Mexico are currently on the waiting list for the redesign of production chains.”
North American, Asian, and European companies are excited at the opportunity of nearshoring because it allows them to transfer their factories and production processes to closer locations that result in lower costs.
Currently, the relocation of companies has become a reality and continues to grow. North America will become one of the most integrated regions in its commercial exchange, says Gabriel Yorio González, Undersecretary of Finance and Public Credit (SHCP).
About the Mexico transportation market update
Schneider publishes this regular transportation market update to keep you informed of freight market conditions, supply and demand influencers, and disruptions that may impact your supply chain.
This report is developed by leveraging data and analytics from multiple transportation industry resources.
This report focuses on the Mexico Transportation Market. View the full Transportation Market Update here.
Weather advisory page -- For the latest information on hurricane season and the impacts on supply chains, please see our weather-advisory page.
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