The global manufacturing landscape has undergone significant changes during and post-pandemic. Now that the dust has settled a bit, one thing is clear: Mexico has surpassed China as the largest trade partner to the United States. This is exciting news, and can be a promising route to explore for many U.S.-based businesses. If you’re ready to launch a product or are interested in the prospect of nearshoring, we would love to help you get started with contract manufacturing in Mexico. Here, we share insight relating to Mexico overtaking China as the U.S.’s top trade partner for the first time:
Why It Matters
For decades, most products bore the “Made in China” label. As of 2022, this country is the second largest economy in the world, and is the leader in production of phone devices, computers, integrated circuits, and more. While there’s no question that China is still a formidable manufacturing partner, the tides have begun to turn.
Given China’s manufacturing strength and length of trading relationship with the United States, Mexico’s rise as a top competitor is even more significant. According to Raymond Robertson of the Mosbacher Institute, this shift has been largely U.S.-driven. As tensions with China have risen, the United States has made a concerted effort to move production to Mexico. The efforts are paying off, as U.S. imports from China have fallen 20%.
Other Contributing Factors
Tensions and security concerns aren’t the only reasons that the public and private sector have been interested in reducing reliance on China. As many of us still remember, the global supply chain was severely disrupted during the COVID-19 pandemic. Shipping from China and other overseas countries became much more complicated, and led to hardships that no one wants to repeat. Because of Mexico’s proximity to the U.S., it simply makes logistical sense to manufacture here whenever possible.
Mexico has been growing as a manufacturing power for years, and to become the United States’ top trade partner is an exciting step. If you’re interested in learning more about contract manufacturing in Mexico, we’re here to help. With several locations near the border and a highly experienced workforce of more than 1,000 employees, we have the capability to manufacture for a wide array of industries. We begin the process with a consultation to determine if we’re the right fit for your project, so you can always feel confident about moving forward with us. Whenever you’re ready, fill out our contact form and we’ll get back with you shortly.
