Guest
Nearshoring is a strategy where companies outsource work to nearby countries, combining the benefits of both onshore and offshore outsourcing. This approach offers cultural proximity, language similarities, and cost savings. It allows companies to access skilled labor at lower costs than domestic options while maintaining close cultural and logistical ties. Nearshoring, the practice of relocating production closer to home, has become increasingly popular among companies aiming to reduce production disruptions and manage geopolitical tensions, such as those between the US and China. This involves US companies attempting to move their operations to Mexico. However, the process has proven to be more challenging than anticipated by both politicians and American businesses. Mexico faces several challenges that hinder its potential to replace China as the primary export hub for the US. In this video, we aim to discuss these challenges which span across different dimensions of the country's economic, industrial, and infrastructural landscape.
