Mexico and the opportunities of "reshoring"

Mexico and the opportunities of "reshoring"

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The last Expo Plásticos Guadalajara, the first major Latin American fair of the sector after the shutdown caused by the pandemic, pleasantly surprised me as a vibrant event, full of optimism and opportunities. Many of us had doubts about whether the audience would attend this in-person event, but the answer was overwhelming and massive: there is a hunger for presence, and visitors came punctually, not only to see and get information, but also to close concrete business deals. 

The interviews I had during the fair describe the extraordinary eagerness of the attendees to invest and the concrete business deals that were closed during the event. One message deeply resonated with me: the concrete investment opportunities that are opening up for Mexico and Central America thanks to the need for the United States to replace imports from Asia, in a trend that has been called "reshoring". 

Not surprisingly, the pandemic has redefined supply chains. The proximity of suppliers is once again playing a key role. And Mexico has been preparing for at least two decades to take advantage of this opportunity. Seeing Mexican plastic companies today, their installed capacity and talking to this generation of plastics technicians and engineers makes us understand that the country is in a unique position to meet the challenges of a supply chain that is leaning in its favor. 

Rodrigo Muñoz, from Wittmann Battenfeld, affirms that Mexico can meet this demand for reshoring, given the excellent infrastructure and the skills of the country's human capital. "In many parts of the world they no longer want to depend on the Asian market, and that is a direct benefit for Mexico. Most of the production that used to be made in Asia and ended up in the United States is now being made in Mexico, because of the proximity and the excellent work that we can do in this country".  

Daniela Calderón, from Hasco, commented that molds that before the pandemic would have been made in China, are now being made in Mexico, thanks to the consolidation of the local manufacturing industry. The purchase orders received by the German company show that the mold manufacturing sector is experiencing an upturn in demand, and from Calderón's point of view, "there's a boom in the mold market this year", and even over-demand is being observed. 

This perception is shared by Sergio Beutelspacher, founder and CEO of the Mexican extrusion machine manufacturer that bears his name. From his point of view, there is a very important opportunity to replace imports; several companies, including Chinese companies, are exploring the opportunity to produce in Mexico. "It is a golden opportunity for the country," says this legendary plastics businessman.

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