The pandemic has left economies around the world struggling and forcing businesses to restructure their supply chain. In the new normal, businesses are diversifying their supply chain to ensure that they are not affected due to any political or natural causes. When we talk about diversifying the supply chain, Mexico sourcing offers a great solution. This country is strategically situated and can become a key player in the global chain diversification strategy.  

Some important reasons why sourcing from Mexico will gain popularity in the coming years.  

  1. Mexico, is a great hedge against supply chain disruption

American, European and Canadian manufacturers already operating in China may face several challenges due to the evolving geopolitical crisis. Additionally, the coronavirus scare has severely disrupted the supply chain from China. Having an alternative manufacturing base in Mexico will give Western businesses a hedge against any future challenges.  

  1. Mexico offers a great alternative 

If your business does not have any manufacturing base in China and you are looking for a low-cost international sourcing option, come to Mexico. This country offers a highly cost-competitive and reliable option to international businesses. Mexico is geographically near the USA and Canada and has good connectivity with these two advanced economies. Even the labour cost in Mexico is quite low, which makes it ideal for low-cost manufacturing.  

  1. Mexico provides supply base diversity 

Mexico has a big industrial base, wherein you will find manufacturers of varied sizes. You can contact the OEMs, and Tier 2 and Tier 3 suppliers of various products. Suppliers in Mexico source their products from various corners of the world. This makes the country a great alternative for sourcing options in case any regional issue disrupts the existing supply chain.  

  1. A young and skilled labour force makes it ideal for shifting manufacturing bases 

As normalcy is returning after the long lockdowns due to the pandemic, manufacturers in the US, Canada and Europe will face serious shortages of skilled labour. Mexico is ideally placed to provide young, skilled and motivated workers. The huge supply of low-cost and high-skilled labourers makes Mexico’s sourcing very attractive.  

  1. Free-floating currency of Mexico is a great asset 

Mexico has continuously devalued its currency for the last few decades. It gives a great advantage to any oversea manufacturer to shift their base to Mexico and source their goods from here at a low cost. The Mexican currency, the peso, has remained stable for a long time, which has made the country an attractive sourcing destination.  

  1. The manufacturing sector in Mexico is highly resilient 

The manufacturing industry in Mexico has bounced back quickly after the current economic downturn. This shows the resilience of the manufacturing sector, which is highly competitive due to lower labour costs. This makes it the perfect international sourcing location for global manufacturers looking to diversify their supply chain and create alternatives.  

Putting all the eggs in a single basket is highly risky. Global manufacturers should look for alternatives to ensure no disruptions to supply chains due to any natural, political or economic issues. Mexico is the ideal sourcing option for businesses worldwide.  

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