“Re-shoring” is alive and well and centred on Mexico according to the latest trade forecast by Delta Economics. Asian exports to Mexico especially in the tech-sectors have been steadily growing since the global economic crisis. For 2014 alone, trade in telephone equipment is expected to rise by 13%, and trade in car parts and TV and Radio Transmitters are both likely to see a 7% rise on the previous year.
Technology sectors are returning to North America to be closer to their customer base. Wages are lower in China and Asia more generally but Mexico offers greater flexibility: businesses are taking advantage of shorter supply chains and more favourable economic conditions. Companies such as VW who produce the Beetle and Fiat who make the 500 range amongst others have moved operations to Mexico with the result that car exports are expected to go up by 9% in 2014.
For more information, visit Delta Economics.
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