Publish Date
Oct 15, 2024
With the U.S. presidential election fast approaching, continued political rhetoric is increasingly populist and isolationist. The current trend toward increased U.S. protectionism is likely to spread beyond Southeast Asian countries.
As a result, U.S. companies are increasingly reevaluating their global manufacturing strategies, with a focus on “de-risking” to reduce reliance on single sources. For U.S.-based companies, there is a high urgency to reshape their manufacturing and supply chain strategy to remain competitive. However, shifting the manufacturing footprint configurations results in major supply chain and operational consequences that cannot be easily undone. Companies choosing this route must prepare themselves for extensive and long-term consequences throughout their organization.
In the first installment of “Nearshoring Manufacturing and De-Risking Supply Chains,” A&M’s James Guyette, Nicolai Buehl and Joon Hyun delve into the complexities of supply chain decoupling and diversification. They identify key factors influencing the formulation of global manufacturing and supply chain strategies and highlight crucial considerations for companies as they begin the process of relocating manufacturing and reshaping their supply chain approaches.
As businesses face rising costs and increasing global complexities, nearshoring to Mexico offers a practical solution for companies looking to reduce labor and real estate expenses. In the second part of our series, A&M experts explore the cost saving benefits and operational challenges of relocating operations to Mexico. They outline key factors such as labor rates and utility costs, helping businesses make informed decisions about their manufacturing strategies.
With global trade dynamics shifting and costs on the rise, the decision of where to manufacture is more crucial than ever for business success. In the third installment of this series, A&M experts compare Mexico and China as potential manufacturing hubs. They examine key considerations such as labor costs, infrastructure, political stability and supply chain efficiency, providing actionable insights for businesses navigating these decisions.
Transitioning manufacturing and potentially a supporting supply base into Mexico can be a challenging process, yet it presents a strategic opportunity to lessen reliance on Southeast Asian suppliers and mitigate risks. In part four of our series, A&M experts delve into the complexities of this transition. Discover key considerations, including logistics, workforce training, quality control and regulatory compliance. Learn how to assess the best regions in Mexico for your manufacturing needs and develop a robust entrance strategy to ensure a successful shift.
As businesses seek to diversify their supply chains, several Southeast Asian countries are emerging as competitive alternatives for manufacturing. In the final installment of the “Nearshoring Manufacturing and De-Risking Global Supply Chains” series, A&M experts explore the strategic advantages of these regions. They discuss key factors such competitive labor costs, favorable trade agreements and supportive government incentives, offering essential insights for businesses looking to enhance their manufacturing strategies. Discover how these emerging hubs can support your business goals and help mitigate risks in today’s complex global landscape.