Supply Opportunities in Mexico
April 14, 2023
Mexico has emerged as one of the foremost exporting markets in the world. The country has a large and diversified labor pool that continues to grow and become more highly skilled, while labor costs simultaneously remain low. Mexico’s proximity to the U.S. can significantly shorten supply chains; combined with the robust infrastructure found in North America, it is a competitive alternative to China. Its horizontal capabilities support a wide variety of sectors, and the country specializes in manufacturing for several industries. Mexico’s economy is dependent on the U.S. export market and its recent economic growth has mirrored that of the U.S., with long-term prospects also looking favorable.
This report addresses opportunities in Mexico for Virginia companies seeking to optimize their international supply chains. It lays the foundations for why an importer may consider supply in Mexico. The report then provides concrete information about several strong supply options in Mexico as examples, although there are many others. It closes with a review of expectations Virginia companies should keep in mind for how to effectively develop relationships with suppliers and some tips and resources for successfully managing collaboration with suppliers in Mexico.