Redwood Logistics expands Mexico footprint as nearshoring pattern positive aspects steam
Redwood Logistics has expanded its operations in Mexico, displaying the most recent step in a logistics trade pattern to construct tighter provide chains between the U.S. and Mexico within the wake of pandemic provide disruptions.
Chicago-based Redwood mentioned it had expanded its operations into new places of work in Monterrey, Mexico, constructing on a five-year historical past of doing enterprise in that nation. The transfer displays the funding that companies are making in nearshoring efforts as they appear to scale back manufacturing and cash-to-cash cycles, the corporate mentioned.
“Mexico has advanced from an exporter of fundamental items to a producing hub for probably the most advanced and technologically superior shopper items, and we’re seeing main investments from the world’s largest retailers and producers from industries together with automotive, home equipment, aerospace, pharmaceutical, HVAC and meals & beverage,” Jordan Dewart, president of Redwood Mexico, mentioned in a launch. “As shippers of every kind make the transfer south of the border, it’s very important that we develop to match their efforts.”
The transfer got here a day after the Florida-based third-party logistics supplier (3PL) BlueGrace Logistics made an analogous announcement, establishing a Mexico workplace that can present help for an current portfolio of shippers shifting freight inter and intra Mexico starting late 2023.
“As extra corporations search for nearshoring alternatives, BlueGrace is aligning itself with shippers’ wants,” mentioned Bobby Harris, Founder and CEO of BlueGrace Logistics. “Our clients have gotten much less reliant on abroad suppliers and this subsequent section in BlueGrace’s development will assist clear the trail of least resistance getting their merchandise to market.”
Within the wake of Mexico’s accelerated nearshoring market, BlueGrace mentioned it’s positioning itself to turn into a transportation providers gateway for the electronics, home equipment, and automotive industries, in addition to shopper packaged items (CPG) shippers.
One other instance of rising U.S.-Mexico ties was the approval final month of the $31 billion merger between Canadian Pacific and Kansas Metropolis Southern railroads, which the companions say creates “the primary and solely single-line railway connecting Canada, the U.S. and Mexico.”
“The port disruption and manufacturing delays that shippers skilled because of the pandemic was a wakeup name of epic proportions,” Redwood’s Dewart mentioned. “Nearshoring is just not a brand new concept, however what’s new is the size of funding that corporations are making. The financial savings you get from manufacturing in Asia are offset in case your containers sit on ships for a whole bunch of days, you rack up enormous demurrage charges and chassis are unavailable on the vacation spot port. With Mexico, you merely put what you want on a truck and might have it at a final-mile distribution warehouse inside days, somewhat than months.”
