Tuesday, April 26, 2011

Mexico More Popular than U.S. for Near-shoring | MH&L

Mexico More Popular than U.S. for Near-shoring | MH&L

Mexico More Popular than U.S. for Near-shoring

The survey also found that 9% of executives surveyed have already taken efforts to near-shore manufacturing operations and another 33% plan to do so within the next three years. Additionally, just 19% say they have experienced supply chain disruptions in Mexico due to security issues.
“While safety and security in Mexico are certainly issues to be taken very seriously, our survey suggests that many companies believe these issues can be effectively dealt with,” says Foster Finley, managing director at AlixPartners and head of its Logistics & Distribution Practice. “As companies think about near-shoring production that was previously offshored – to respond to rising labor costs overseas, exchange-rate changes, etc. – Mexico is obviously high on their lists.”
According to the survey, Mexico’s average ranking for attractiveness among those likely to near-shore was more than seven times that of Brazil’s and countries in Central America combined.
The survey also polled executives on plans to offshore current U.S. operations, and found that 37% of respondents have already completed, or are in the process of offshoring, while 27% expect to offshore U.S. operations within the next three years. Of those who have offshored or plan to offshore, Mexico also topped the list as the most attractive locale, beating out the BRIC countries (topping China narrowly and India, Brazil and Eastern Europe by wide margins).
“Despite security concerns in Mexico, the country has a lot of appeal right now because of its proximity to North American demand and the continuing need of many companies to improve their working-capital positions,” says Chas Spence, a director in the Latin American Manufacturing Practice at AlixPartners. “That appeal could grow if fuel prices continue to rise globally.”
In terms of the expected advantages to be gained from near-shoring, lower freight costs, improved speed-to-market times and lower inventory costs were the top three reasons cited on average. Other reasons included “time-zone advantages” (easier management coordination, etc.) and improved “cultural alignment” with North American managers.
“In-transit inventory, in particular, was a high priority among those interviewed,” says Russ Dillion, a vice president in the Latin American Manufacturing Practice at AlixPartners. “Obviously, shipping products in from long distances eats up a lot of inventory expense, and that’s something companies would like to improve if possible.”

Upcoming Trade Events

Borderland Trade Show
May 3, 2011
El Paso, TX


"Manufacturing & Site Selection Summit - Manufacturing in Mexico"
May 19th and 20th, 2011
Las Vegas, NV at the Bellagio Hotel 


Mexport 2011
May 19, 2011
1462 Corporate Center Drive, San Diego CA, 92154

Friday, April 22, 2011

Easter Holiday transit restrictions in Mexico



• In force from 15 April to 2 May
• The federal transport of specialized cargo and hazardous waste materials and transportation of indivisible objects of great weight and / or volume circulate seven in the morning at six p.m.
• Vehicles carrying indivisible objects machinery and heavy and / or volume can not travel the 15 to 18, 21, 22, 24, 25 and 29 April and 1 May 2

The Ministry of Communications and Transport (SCT), through the Federal Motor Carrier Department, determined the security strategy for the Easter holiday period in the national road network, which came into force last Friday, 15 April, ending on May 2.
This strategy was released to the SCT Centers around the country, the Federal Police and licensees and users of federal motor carrier, in order to help to strengthen actions that allow the safe passage of road users, highways and bridges, federal and international.
Establishing restrictions on the movement of certain types of vehicles from trucking certain days and times.
Thus, industrial cranes and special equipment to transport indivisible objects machinery or heavy and / or volume, that have the special permission of the SCT, may move only from 07:00 to 18:00 hours during the period holiday, except on days 15 to 18, 21, 22, 24, 25 and 29 April and on 1 and 2 May, which must fully suspend its traffic.
Only units carrying commodities and energy may travel without restriction of time during this period of leave, provided they comply with safety precautions that the NOM-068-SCT-2-2000 and the Regulations for the Land Transport Materials and Hazardous Waste regulations.
Freight vehicles and hazardous waste materials that are not commodities and energy, moving in double articulated tractor configurations (trailer, TSR and TSS) as well as cars without roll, truck-trailer (gondolas, ) may only travel on highways with high specifications and ET type A, without time restriction.
The verification of compliance with applicable requirements specified in the Easter holiday period 2011, will be in charge of the Federal Police and the SCT. The Federal Police in accordance with its terms, monitor and punish those provisions when the vehicle is found circulating in the federal highways, and the SCT, in Weight Control Centers and Dimensions, based on relevant regulations, as well as applicable Mexican Official Standards.
The SCT urges users of the federal network of roads, highways and bridges national and international, to respect the signs and speed limits, not driving tired or under the influence of alcohol or drugs, and make your trip a safe and secure.
- Ooo0ooo -

Last modified:
19/04/2011, 06:00
By: Social Communication

Monday, April 18, 2011

LA Port Traffic: Exports increased sharply in March


Forex - LA Port Traffic: Exports increased sharply in March

The first graph shows the rolling 12 month average of loaded inbound and outbound traffic at the ports of Los Angeles and Long Beach in TEUs (TEUs: 20-foot equivalent units or 20-foot-long cargo container). Although containers tell us nothing about value, container traffic does give us an idea of the volume of goods being exported and imported - and possible hints about the trade report for March. LA area ports handle about 40% of the nation's container port traffic.

LA Area Port TrafficClick on graph for larger image in graph gallery.

To remove the strong seasonal component for inbound traffic, this graph shows the rolling 12 month average. 

On a rolling 12 month basis, inbound traffic is up 17% and outbound up 9%.

LA Area Port TrafficThe 2nd graph is the monthly data (with strong seasonal pattern). 

For the month of March, loaded inbound traffic was up 2% compared to March 2010, and loaded outbound traffic was up 11% compared to March 2010. This was the third highest month for exports ever, and the highest since the peak in 2008.

This suggests the trade deficit with China (and other Asians countries) probably decreased in March.

Friday, April 15, 2011

Transportation Intermediaries Association Trade Show April 6 - 9

We recently participated in the TIA's annual Convention and Trade Show in Orlando, FL
It was a great time following up with old clients and friends and meeting new ones.

This was the first time our new trade show booth was used. Convenient, light, and easy to put up and take down. Most important, it seemed to properly express our company's emphasis in trucking into and out of Mexico.

Company President  Tom VanMouwerik participated this year in the TIA Foundations first ever 5K run. "A lot of really fast runners in that group" reported Tom. Although is time was not in the top tier, he has a whole year to get ready for the next TIA 5K in San Antonio, TX.  Good job Tom!

Tom VanMouwerik with long time friend and service provider Gilles Roch from  G. Roch Consultant LTD.

Helping out this year was Sales and Marketing Pro Carmina Morales.

No trip to Orlando can be just all work and no play. Free time was spent at Universal Studios