Major U.S. businesses are rethinking their overseas manufacturing positions because the offshore advantage of labor arbitrage is evaporating. - Victoria Prussen Spears, co-founder and CEO of Global Outsourcing Information Inc.
New York, NY (PRWEB) April 30, 2013
“The nearshore market is very large and growing, particularly in manufacturing, information technology and business process outsourcing services,” Victoria Prussen Spears tells readers in an article published in the current issue of MHI Solutions.
Ms. Spears, co-founder and CEO of Global Outsourcing Information Inc., a New York-based company that produces Outsourcing Destinations guides that provide comprehensive information about nearshoring to Mexico and other locations, explains that “[m]ajor U.S. businesses are rethinking their overseas manufacturing positions because the offshore advantage of labor arbitrage is evaporating.”
Ms. Spears adds that other factors that are leading to the growth in nearshoring to Mexico and other countries, including Brazil, Colombia, Costa Rica, and Nicaragua, are “the cost and time to ship goods to the United States and for U.S. executives to travel to overseas providers; a ‘lack of cultural affinity’ between the U.S. and Canada and other more distant outsourcing destinations; as well as the time zone disparity.”
The article, “A Growing Trend: Nearshoring gains ground as companies seek agility, cost savings and speed to market,” by Dinah Wisenberg Brin, explores a multi-national industry shift of outsourced operations from Asia to the Americas.
Discussing nearshoring to Mexico, Ms. Spears highlights Mexico’s favorable trade agreements with 44 countries and observes that the “long-established, growing Mexican auto industry produced 2.6 million cars in 2011, exporting 2.1 million of them, and that same year, Nissan, Mazda, Volkswagen, Chrysler, Honda and General Motors announced investments to increase production capabilities in the country.”
Similarly, Ms. Spears, of Global Outsourcing Information, points out that the growth in the aerospace industry in Mexico has been nothing short of “phenomenal” in recent years. According to Ms. Spears, the aerospace industry in Mexico “attracted over $1 billion in investments in 2010, a 25 percent increase from the prior year.” In the article, Ms. Spears also references the major players in the aerospace industry in Querétaro, Mexico, including Canada’s Bombardier Aerospace, General Electric, and the French conglomerate Safran.
The bottom line, Ms. Spears states, is that “Mexico has a stable and growing economy, well-qualified and highly productive workers, wages that are in some areas lower than wages in China, and shipping times for goods to reach North American destinations that are measured in days rather than months.” Other nearshoring destinations in Latin America offer many of the same advantages, Ms. Spears concludes.
The MHI Solutions article is available online at “A Growing Trend: Nearshoring gains ground as companies seek agility, cost savings and speed to market.”
Global Outsourcing Information, a publishing company headquartered in Miller Place, New York, and member of the Nearshore Executive Alliance, writes and publishes Destination Guides containing the most up-to-date, reliable, highly researched, analytical, and comprehensive nearshoring and outsourcing destinations information available anywhere. Global Outsourcing Information’s new book, Outsourcing Destinations: Mexico 2013, is the first in a series of Destination Guides planned by the company.
Ms. Spears is available to editors and writers as a source about nearshoring to Mexico and other Latin American countries. A digital copy of Outsourcing Destinations: Mexico 2013 is available at no cost to journalists. For more information, visit http://www.globaloutsourcinginfo.com, e-mail info(at)globaloutsourcinginfo(dot)com or call 315.636.4272.