SEIZING CALIBAJA’S NEARSHORING OPPORTUNITY:

About our initiative

Supply chain disruptions caused by Covid-19, a complicated geopolitical landscape, and rising labor, logistical and transportation costs have prompted a growing number of companies once largely reliant on Chinese manufacturing to re-shore their production back to the United States or explore nearshoring options.

Mexico is among the preferred nearshoring options for companies focused on the North American market due to its proximity to the United States and established supply chains with the United States and Canada. That said, Mexico competes with other friend-shoring options (including Malaysia, Indonesia, Thailand, Vietnam) where corporate supply chains are being redistributed based not only on cost and geographic proximity, but a variety of other factors including proximity to Asian markets, security, logistical reliability, speed to market, regulatory considerations, rule of law, political stability, and government incentives.

Among locations in North America, the CaliBaja Binational Mega-Region is uniquely positioned to take advantage of this historic re-shoring/nearshoring opportunity for critical high-value-added supply chains, including medical devices, semiconductors, aerospace, and lithium battery/zero emission vehicle manufacturing. Under the right conditions, the region also has an opportunity to become a destination for future generic drug and biosimilar manufacturing.

Whether Mexico, and more specifically the Cali Baja region, will take full advantage of this once-in-a-generation nearshoring opportunity remains an open question. Much will depend on whether the CaliBaja region seizes the opportunity.