“Nearshoring,” involves companies building new facilities or relocating existing facilities and operations in countries neighboring or close to consumer markets, rather than doing so from more distant locations.
“Nearshoring” is a hot topic throughout Latin America and is receiving increasing attention in the United States. We offer this introduction to “Nearshoring” and the opportunities it presents for your reference.
“Nearshoring” has become increasingly relevant in the context of the globalized economy. This phenomenon describes relocating production and service operations to countries geographically close to consumer markets, instead of opting for more distant locations as in traditional “offshoring”, considering, as dominant criteria, production conditions and costs.
Mexico, for example, given its strategic geographic closeness to the United States and its highly skilled labor force, is an attractive location for companies in a wide range of industries which are considering relocation or construction of new facilities and seeking to optimize costs, maintain efficiency and mitigate supply chain risks.
Reprinted courtesy of Jerry P. Brodsky, Peckar & Abramson, P.C. and Roberto Hernandez, Peckar & Abramson, P.C.
Mr. Brodsky may be contacted at jbrodsky@pecklaw.com