U.S. Companies Face Hurdles in Moving Production Closer to Home
18 Apr 2022
Companies looking to make their supply chains more resilient with nearshoring strategies may only be bringing production problems closer to home, experts say.
U.S. importers who are studying shifting their sourcing from the Asia-Pacific region to Mexico and deeper into Latin America are finding it tougher to find suppliers with the right raw materials, production quality and networks for getting their own components that have been established in manufacturing hubs like China and Southeast Asia. Reproducing that capacity and re-creating clusters of suppliers under a nearshoring strategy will take years, experts say.