Nearshoring is a strategy for reducing production costs that has gained popularity in recent years. But do you know what it is and how the automotive industry in Mexico can benefit from it? Here we tell you about it.
What is nearshoring?
Near-shoring is an industrial strategy used by companies to install their factories in regions that allow them to be closer to the end market, which enables them to reduce high costs, mainly in terms of logistics and supply chain. Another action related to this strategy, which is gaining more and more strength, is the outsourcing of services from other companies, which forces their workforce to be highly trained in order to take advantage of the opportunity.
Importance and benefits of Nearshoring for the auto parts industry and OEM's in Mexico.
Nearshoring has become an opportunity for the auto parts industry and OEM's in Mexico due to multiple factors, among which the following stand out:
- Geographic proximity
Mexico's location makes it an attractive destination for auto parts companies seeking to reduce the time and cost of shipping their products to the United States and Canada, two of the main export markets for Mexican auto parts. - Skilled labor
Mexico has a highly skilled and specialized workforce in the production of auto parts, which allows companies to take advantage of the experience and skills of local workers to improve the quality of their products and increase the efficiency of their operations. - Competitive costs
The cost of labor and inputs in Mexico is significantly lower than in other North American countries, allowing auto parts companies to reduce their production costs and increase their profitability. - Trade Agreements
Mexico has several trade agreements with other countries, including the United States, Canada and several Latin American and European countries, which facilitate trade and reduce tariff and regulatory barriers for auto parts companies.
According to an article in El Economista, nearshoring is a strategy that detonates economic growth by providing more resources and increasing productivity, which translates into higher income for workers and better quality jobs.
Importance of specialized training in nearshoring
However, in order to take advantage of this strategy and consolidate it in Mexico, it is necessary to develop talent that meets the advanced manufacturing requirements of nearshoring through specialized training.
The Human Resources portal, RHT, states that 78% of the companies that have been successful in implementing the nearshoring strategy have been thanks to the training of their talent through technical skills and knowledge development programs that allow them to compete at a global level.
Types of specialized training in Nearshoring
There are different types of specialized training that help manufacturing industry professionals make the most of nearshoring in Mexico.
Some of them are:
- Engineering skills: The auto parts manufacturing industry and OEM's require specialized knowledge in engineering, such as mechanical, electrical, electronics, software architecture design, among others, in order to design, test and produce innovative and high quality parts and components.
- Manufacturing expertise: To take advantage of nearshoring, it is important to have manufacturing expertise, as this enables the design and production of high quality parts and components in an efficient and cost-effective manner.
- Knowledge of specialized technologies: The auto parts and OEM's industry requires a high degree of technology and automation, so it is important to have specialized knowledge in software, robotics, data analysis and interpretation, among others.
The demand for nearshoring services in Mexico is expected to grow in the coming years, driven by companies that are mainly looking to reduce costs and access highly qualified professionals.
Lab it Studio, your best ally to take advantage of the nearshoring strategy in Mexico.
In Lab it Studio, we have specialized courses that will help you develop your skills in software development and meet the needs of companies coming to the country, such as one of the most valuable automakers, Tesla.
If you want to know more about our specialized courses, click here.
