Say the word, “nearshoring” and the first country that often comes to mind is Mexico. With advantages such as geographic proximity and participation in the US-Mexico-Canada Agreement (USMCA), Mexico is often the first option when considering relocation of manufacturing or product sourcing closer to domestic North American markets. But there’s a lot more to breaking often decades-long relationships with existing overseas vendors than simply up and moving to Mexico. This TPM Academy module will provide a primer on Mexico, focusing on considerations including optimal modes of transportation, lead times, logistics costs, as well as product availability and quality, border vs. deep Mexico locations, the shipper-friendly IMMEX* program for approved manufacturers, and product origin criteria for USMCA qualification. In addition to these mission-critical factors, the session will touch on not-so-positive elements that include organized crime, security risks, and corruption.

* IMMEX, a Spanish acronym for Manufacturing, Maquiladora, and Export Services Industry is a Mexican program that enables foreign companies to operate and manufacture in Mexico with low-tax structures and reduced labor costs