Starting with the Section 301 tariffs in 2018 and then the supply chain issues suffered throughout the pandemic and beyond, more US importers want to shift product sourcing from Asia to Mexico. Although it’s a great idea on the surface, such a move isn't as easy as it sounds. While there are great sourcing options in Mexico, US importers must exercise the proper due diligence long before products begin to move. In recognition of this monumental sourcing shift and to help US importers avoid a "dear-shoring" scenario (as in, "it will cost you dearly"), this TPM Academy session will cover all the bases related to product design and engineering, keys to working with contract manufacturers, product quality, production capacity, and cost. It also will delve into the logistical and USMCA considerations that can make or break a near-shoring project. Topics to be covered in this 45-minute session include:

• How manufacturing works in Mexico: Contract manufacturers, Tier I, II & III vendors

• Working with suppliers: The importance of a design & engineering-first approach

• Product procurement in MX: Availability, quality, price & production capacity

• Supplier considerations based on geographic location

• Logistics & transportation infrastructure from MX to the US

• Rules of origin to qualify for duty free treatment under USMCA

• Potential risks of producing or sourcing goods in Mexico