Here’s another thing to put on your technology watch lists. Due to a combination of the economic consequences of the coronavirus and the trade war between the U.S. and China, many U.S. companies are moving their manufacturing out of China. Consulting firm Kearney publishes its Reshoring Index [PDF].

Kearney predicts companies “will be compelled to go much further in rethinking their sourcing strategies, (and) their entire supply chains.”

Amid other companies, Mexican manufacturing is one possible fork in Apple’s road, along with Vietnam. As Forbes states, the U.S. can’t compete with China on labor costs, and I bet few Western countries can. I don’t know what the cost is to manufacture in Mexico, but the country likely carries less risk than China.

Check It Out: “Mexico is the China of the Americas”

3 Comments Add a comment

  1. MacFrogger

    You are absolutely right geoduck – these mfrg jobs aren’t coming back to the US. However, I would like to see some of those jobs go to Mexico though – Mexico is our neighbor and a democracy right on our border. It strengthens North America as a unit and shortens supply chains – which is good for the environment too!

  2. RichEM

    When you say that you don’t know how mexico compares in cost to china you blow all validity you might have had on this topic!

  3. geoduck

    The biggest takeaway though is that these plants will NOT be coming back to the US. And no amount of posturing by the ******* POTUS will get them back.

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