Nearshoring: COVID-19 and the USMCA Have Reopened the Conversation about Manufacturing in Mexico

U.S. manufacturers have benefited from Mexico manufacturing for decades as a way to reduce costs. However, this operational strategy has now become an increasingly popular alternative to offshoring to China due to significant changes to trade policies and global infrastructure. In 2020, both the challenges brought forth by the COVID-19 pandemic and the enforcement of the United States-Mexico-Canada Agreement (USMCA) caused many U.S. manufacturers to switch their strategies and relocate their foreign operations from China and bring them closer to home, in Mexico.

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