Recent geopolitical shifts and other factors, like pandemic-related disruptions and rising costs of production in China, suggest that Mexico might be poised for another surge of manufacturing activity. Successful negotiation of the United States-Mexico-Canada Agreement (USMCA), which replaced the 25-year-old North American Freight Trade Agreement (NAFTA) is another accelerant for the trend toward stepped-up production in Mexico.
The next few years could be record setters for Mexican industry, as mid-sized shippers look to reshore manufacturing back to the western hemisphere. Many are likely to start with small facilities, then gradually expand their reliance on Mexican production if the transition proves successful.
Additional factors helping Mexico include use of high-tech tools that greatly improve carriers’ ability to track and secure goods traveling throughout Mexico. The advent of GPS and electronic logging devices (ELDs) are among the innovations that are providing increased visibility and control of freight no matter where it happens to be.