Even as we approach the second year of the COVID-19 pandemic, global supply chains continue to face significant disruptions. From consumers to business owners, we’ve all noticed the rising prices of goods, product shortages, and longer shipping times. If you’re gearing up for the manufacturing process and want to avoid hiccups in production and shipping (or mitigate current problems), you may be interested in exploring contract manufacturing in Mexico. Here’s a closer look into why supply chains have been interrupted and how manufacturing in Mexico may help alleviate some of the delays consumers are so frustrated about:
How COVID-19 Impacted the Global Supply Chain
At the onset of the pandemic, people around the globe isolated at home in unprecedented numbers. During this unusual period of time, demand for some products fell, while the demand for others (such as electronics) skyrocketed. The chip shortage is a prominent example of the supply chain issues: since there’s been a huge uptick in demand for products containing chips, manufacturers are backlogged. This led to assembly plants having to shut down, costing high-profile companies such as Apple, Inc. billions in sales.
In addition to the shortage of critical supplies, the cost of overseas shipping has soared. Combined with the increased demand for certain goods and persisting pandemic restrictions, the cost of shipping a container from China to the United States hit a record high of $20,000. Compounding the problem, cargo wait times are currently much longer than usual. U.S. ports are busier than ever, but with a crush of incoming goods and limited workers to move them, ships are waiting at sea for days longer than previous averages. For goods coming from China, the average waiting period has increased by almost a month.
The global supply chain disruptions are widespread, leading to increased calls for reshoring. If you’ve hit snags in the supply chain, there’s no question that you’re ready to find a solution as quickly as possible. If you need a manufacturing option with faster lead times and lower shipping costs, consider contract manufacturing in Mexico. Working with an experienced manufacturer that shares a border with the U.S. will help ensure that your products are finished and delivered to your customers in a timely manner. There are numerous benefits to partnering with a registered maquiladora, including highly-skilled labor and duty-free imports. The CaliBaja team is family-owned and has been in business for over 40 years. We have the capabilities to produce a wide array of products, and we’d love to speak with you to learn more about your project to determine if we’re the right fit. Contact us when you’re ready to schedule a consultation.
Photo by william william on Unsplash
