"Executives’ Perspectives on Manufacturing Near-Shoring"

by Russell Dillon, AlixPartners

Abstract: Amid rising wages in Asian countries, rising fuel costs, and extended supply chain risks, companies that sell into the US market are actively considering near-shoring. This study of 80 C-level executives finds that Mexico has emerged as the top choice among companies considering relocating their already offshored operations closer to home. Though security risks are a clear concern among respondents, relatively few have actually experienced supply chain disruption in Mexico. Moreover, executives appear moderately optimistic about the future of the country’s security problems; 50% expect at least modest improvement in safety and security issues.

Published July 2011.