Messing With Mexico Is A Mistake

2/9/2017 Forbes

mexican-flag1For every supply chain executive adding jobs in Mexico, 2.4 are also creating jobs in the United States. In fact, among 129 managers who said Mexico was one of their top three countries for planned hiring over the next three years, 81 said their top overall country for new job creation was the US – Mexico was second or third. As for those who are actually shifting work southward, this group is less than 5% of our total sample of 1,179 supply chain executives worldwide.

Mexico is the second largest exporter to the US. It’s also the second largest importer from the US. Michigan, which shares a border with Canada, is the third-ranked state in terms of exports to Mexico. This is mostly auto parts bound for assembly into finished vehicles.

A huge portion of everything we produce and consume – from natural gas and food to cars and computers – makes its way across the border, often more than once. The North American supply chain ecosystem is so intertwined that simplistic efforts to force business to alter hiring plans will almost certainly end badly.

Costs will go up, supply availability will suffer and companies will respond with even faster moves to robotics and automation.

Read more…

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