The decision by many U.S. businesses to return manufacturing to North America – specifically to Mexico – is resulting in increased demand for logistics services to the Canadian market. The reason for this? As the United States’ top trading partner, many of those Mexican-made products will be headed to the Canadian market. Whereas a few years ago those products might have been made in China, now they are coming from Mexico.
Many businesses have been surprised though, to learn that few options exist for direct Mexico-Canada service. Instead, shipments are often subjected to multiple transfers, excessive downtime, and routes that wander hundreds of miles off course. Why, businesses wonder, does the process have to be so complicated?
Well, it doesn’t. As our new white paper, Mexican Manufacturing Opportunities and Logistics Efficiency for Canada-Bound Shipments makes clear, improved logistics solutions are now available that dramatically improve service from the Mexican border into Canada. Shipments can travel from the Mexican border directly to the Canadian border with no additional stops or delays. Success in logistics efficiency though, depends on a business’s choice of logistics partner. Many logistics companies offer service from Mexico to Canada, but few prioritize the need for improved efficiency.
Our white paper explains the intricacies of Mexico-United States-Canada shipping. Readers will understand that the process can be tricky – and complicated. The paper also touches on important aspects of the Mexican market, with insight on topics that include:
- Geographic and Demographic-based information. Did you know that only about ten percent of the Mexican population is fluent in English? This can make it difficult for conducting business with Mexican counterparts.
- The United Mexican States. The country is divided into 32 distinct states, including six that share a border with the United States. The paper provides an overview of those six border states, along with several “interior” states with strong manufacturing operations.
- Mexican government incentives. International businesses can take advantage of government-backed programs that provide duty and tax savings. The country’s IMMEX Program, for example, allows foreign-owned facilities to temporarily import raw materials into Mexico, provided the goods are subsequently exported.
- Manufacturing clusters. Mexico is quite proud of its networks of manufacturing clusters. Dozens of clusters can be found throughout Mexico, focused on the automotive, home appliance, medical device, advanced manufacturing, IT, and food/beverage industries, among others.
The paper will also highlight the need for an experienced cross-border logistics partner. U.S. drivers are largely prohibited from accessing the Mexican market, which means the journey to Canada actually begins when a shipment arrives in the Unites States. As our paper makes clear, it’s essential to enlist a logistics partner with the resources needed for direct service to the Canadian border, followed by comprehensive end-delivery throughout Canada.
A strong Mexico-Canada logistics strategy is the final component for a North American-based supply chain. We encourage you to download our paper and learn how to lock-in this critical service.