WSJ: Private Investors Looking to Capitalize on Nearshoring Trends Turn to Mexico
A supply-chain rethink is driving private-capital firms and their portfolio companies to set up manufacturing operations in the U.S.’s southern neighbor, which offers skilled workers and free trade WALL STREET JOURNAL: As more businesses look to diversify their supply chains and bring more of their production closer to the U.S., private-capital firms and the companies they own are increasingly looking to Mexico. Known as reshoring or nearshoring, the shift to bring supply chains and manufacturing closer to the U.S. has grown as U.S.-China tensions and the pandemic-driven distribution crisis forced businesses to give priority to supply-chain resiliency over the cost-cutting that once sent that production to Asia, particularly China, consultants and deal makers say. “The new variable that was introduced is risk,” said Rosemary Coates, executive director of the Reshoring Institute, a nonprofit organization that advocates the return of manufacturing to the U.S. “Companies were able to see that these long global supply chains involved a lot of points of failure and, potentially, introduced a lot of risk into their operations.” The supply-chain rethink is generating investment opportunities in Mexico for private investment firms as well as growth opportunities for portfolio companies. Along the way, however, investors must navigate their share of hurdles, including a complex regulatory environment. Editor’s Note: Click here to read the full story by reporter Maria Armental in the Wall Street Journal. Editor’s Note: The main image accompanying the above News Clip shows the World Trade Center San Luis Potosí, one of the largest industrial parks in Mexico. The Greater Brownsville Incentives Corporation has entered into an agreement with WTC Industrial to have the company build a new industrial park built in Brownsville. Photo credit: WTC Industrial. Quality journalism takes time, effort and…. Money! Producing quality journalism is not cheap. The coronavirus has resulted in falling revenues across the newsrooms of the United States. However, The Rio Grande Guardian International News Service is committed to producing quality news reporting on the issues that matter to border residents. The support of our members is vital in ensuring our mission gets fulfilled. Can we count on your support? If so, click HERE . Thank you! Keep on top of the big stories affecting the Texas-Mexico border region. Join our mailing list to receive regular email alerts.
