China’s Loss Is Mexico’s Gain: Bank of America Says a Transformed Global Supply Chain Means Nearshoring Investment in the Country Is a ‘Lifetime Opportunity’
By Tristan Bove
One of the many buzzwords to have come out of the supply chain crisis of the past few years has been “nearshoring”: companies investing in production closer to home so that they don’t have to deal with global sourcing challenges.
In the U.S., the supply chain crisis has added fuel to the country’s inflation fire, and a growing number of industries have chosen to bring production closer to home as a result. U.S.-based companies that have already reshored their operations to nearby countries in Latin America and the Caribbean include carmaker Ford and aerospace manufacturer Boeing.
The nearshoring momentum could represent a major rethink of global supply chains, and some countries could be in line for a windfall because of it. But Bank of America analysts believe that based on early signs, Mexico is poised to be the main beneficiary of the new nearshoring wave sweeping the U.S.
Photo courtesy of A.Davey.
Source: Fortune (link opens in a new window)