Over the past few years, the perfect storm has been brewing. Making diversifying away from the US and North America’s dependency on Chinese Manufacturers more attractive, if not completely necessary. The ongoing trade war between the USA and China. Causing, in some cases as much as 25% tariffs on Chinese-made products. Rising Chinese wages and soaring energy costs have also lessened the appeal of manufacturing in China.
Throw 2-3 years of an unprecedented global pandemic on top of these issues. Including all the supply chain and logistical issues caused by covid 19. Thus bringing you a perfect storm; Incentivizing companies to insource or Nearshore, more of their overall manufacturing. Not to mention moderate wage growth and lower energy prices, making Mexican Manufacturing and even US manufacturing more attractive.