Research by LMA Consulting Group shows potential effect of US government policy on near-shoring.

Near-shoring is taking on ‘the Amazon effect’: the need for rapid response to customer needs. A recently released study by LMA Consulting Group indicates that 70% of US manufacturing executives expect near-sourcing to increase within the next five years.

“I’ve seen that manufacturers were already considering insourcing to the US and near-sourcing options to Mexico and other closely located countries because of the Amazon effect,” said LMA president Lisa Anderson.

She adds that industry was already moving in that direction prior to the US presidential election. “However, since tariffs are likely to increase and bad publicity could easily occur, the impact will probably steer some of those companies towards the US instead of Mexico,” she said.

Data for the survey was collected between August and October 2016, before the US election. At that time, Ms Anderson remarked that she expected tariffs to increase. Since then, president Donald Trump has threatened to impose a 35% tax on US companies that move jobs overseas, including Mexico. 

This article is sourced from fDi Magazine
fDi Magazine

Global greenfield investment trends

Crossborder investment monitor

fDi Markets is the only online database tracking crossborder greenfield investment covering all sectors and countries worldwide. It provides real-time monitoring of investment projects, capital investment and job creation with powerful tools to track and profile companies investing overseas.

Click here to find out more about fDi Markets

Corporate location benchmarking tool

fDi Benchmark is the only online tool to benchmark the competitiveness of countries and cities in over 50 sectors. Its comprehensive location data series covers the main cost and quality competitiveness indicators for over 300 locations around the world.

Click here to find out more about fDi Benchmark

Research report

fDi Intelligence provides customised reports and data research which deliver vital business intelligence to corporations, investment promotion agencies, economic development organisations, consulting firms and research institutions.

Find out more.