Manufacturers are leaving China, according to Tia Nowack, associate editor for manufacturing.net. Businesses are seeing the benefits of moving their factories closer to the U.S. in Mexico. Nowack cited the increasing wage and currency costs of China, along with higher fuel prices and costs for transportation. The price of manufacturing in China will be the same as it is in America as soon as 2015, according to Nowack.
In contrast, Mexico has low labor costs and the advantage of being much closer to America.
There appears to be a trend among "automotive, aerospace and textile industries," according to Nowack.
The Mexican government is incentivizing nearshoring in Mexico. It is financing improvements to national infrastructure and roads to make trade easier. Additionally, it is insulated from many of the problems seen in other Latin American countries, according to Richie and Lucia Matthews, co-directors of Dialogo, a PR firm, Fox News reported. They called it "the best viable alternative to offshoring to India," and cited the Nearshore Americas Power 50, which names the most influential nearshore figures from 16 countries. According to Richie and Lucia Matthews, nearshoring is a $10 billion industry.
The Offshore Group: You manufacture ... We do the rest