The Benefits of Nearshoring in Mexico

The Benefits of Nearshoring in Mexico

nearshoring in MexicoMany recent articles and white papers have been discussing the emerging trend of nearshoring in Mexico. Thanks to rising costs in China, delays and disruptions to transpacific shipping routes, and logjams at United States western seaports, many manufacturers are looking closer to home for their sourcing needs.  For many of these companies, Mexico – the third largest U.S. trade partner – has become a cost-effective alternative.

According to a recent manufacturing study published by a reputable global research firm, some 46 percent of respondents have already engaged in a plan to nearshore within the next five years. Of those companies, 63 percent say Mexico is the leading candidate, citing lower transportation costs and improved speed-to-market.  As a result of increasing demand, truck and rail traffic between the U.S. and Mexico set record highs for volume and freight value, in 2014 according to the U.S. Bureau of Transportation Statistics.

Being closer to the U.S. market by nearshoring in Mexico provides companies with a number of benefits, including:

  • Proximity. A shipper can move freight from Mexico to the U.S. by ocean in 48 hours, and by truck within a few days or less. By contrast, shipping a container from Asia to the U.S. could take up to six weeks to deliver. Another consideration is that operating in similar time zones creates opportunities to strengthen collaboration between U.S. companies and their Mexico counterparts.
  • Trucks and Rails.  More than 1.37 million trucks crossed the U.S./Mexico border in the first quarter of 2015, up almost 3 percent from the prior year. Also, shippers now have more reliable and seamless intermodal service options between the U.S. and Mexico, which can offer a 15- to 20-percent cost advantage over trucks alone.
  • Labor. Unlike a decade ago when Mexican labor costs were reportedly 60 percent higher than those in China, today they’re on par or lower.  Mexican companies have also transitioned from simple assemblers of products to exceedingly sophisticated manufacturers.

With an abundant labor pool, lower wages, low energy costs, and simplified truck and rail transport, including intermodal operations, Mexico has emerged as a nearshore alternative to overseas manufacturing. Companies unfamiliar how best to optimize their U.S./Mexico supply chains through the use of effective cross-border transportation and warehousing can contact the experts at Logistics Plus for help. We have been managing logistics between the U.S. and Mexico for nearly 20 years, and we recently celebrated our 10th anniversary for operations in Mexico.

The benefits of working with the Logistics Plus cross-border logistics team include:

  • Bilingual staff members on both sides of the border
  • Proven experience and success on both sides of the border
  • Competitive rates and contracts for cross-border transportation
  • Full shipment visibility across the entire supply chain
  • Customs clearance, global trade compliance, and NAFTA expertise
  • Warehousing availability with Foreign Trade Zone (FTZ) activation

Please visit www.logisticsplus.com/Mexico to learn more or contact us using the button shown below.

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Logistics Plus Celebrates 10 Years of Business in Mexico

Logistics Plus Celebrates 10 Years of Business in Mexico

FOR IMMEDIATE RELEASE

Logistics Plus Celebrates 10 Years of Business in Mexico

LP Mexico Division Continues to Enjoy Steady Growth and Success

LP-Mexico-10-Years-Square1ERIE, Pa. (July 20, 2016) – Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, is proud to celebrate its 10th year of business operating in Mexico this month. As an important division within the company, today “LP Mexico” has more than 30 employees located at offices in MonterreyNuevo Laredo, and San Luis Potosi.

Mexico continues to play an important role in global supply chains as companies across a variety of industries enhance their presence in the country by expanding manufacturing operations or growing their supplier base there. Over the past 10 years, companies doing business in Mexico have benefited from working with Logistics Plus bilingual experts, both inside and outside of Mexico, to provide reliable cross border transportation, import and export solutions, customs brokerage, and intra-Mexico logistics services.

Originally Logistics Plus began serving Mexico from Erie, PA to support GE Transportation (a division of General Electric) and the movement of locomotives and parts to and from the U.S.,” said Francisco Tijerina, Mexico division director for Logistics Plus. “Through word-of-mouth, referrals and great service, we now provide logistics services in Mexico from our three in-country locations, and we have hundreds of additional customers across many industries. We look forward to many more years of service to our customers in this important and growing region of the world.

Francisco splits his time between Mexico and Erie, PA to ensure success with customers on both sides of the border. Jose “Pepe” Garza and Ubaldo Lizcano complete the LP Mexico leadership team. Peppe has been developing international relationships with customers and partners worldwide, while Ubaldo is responsible for growing and maintaining the domestic market within Mexico. The entire LP Mexico team is committed to providing world-class services and exceeding customers’ expectations. You can learn more about LP Mexico at www.logisticsplus.com/Mexico.

In addition to its 10th anniversary in Mexico, Logistics Plus also announced that the entire company will be celebrating its 20th anniversary in August 2016.

About Logistics Plus Inc.
Logistics Plus Inc. provides freight transportation, warehousing, global logistics, and supply chain management solutions through a worldwide network of talented and caring professionals. Founded in Erie, PA by local entrepreneur, Jim Berlin, 20 years ago, Logistics Plus is a fast-growing and award-winning transportation and logistics company. With a strong passion for excellence, its 380+ employees put the “Plus” in logistics by doing the big things properly, and the countless little things, that together ensure complete customer satisfaction and success.

The Logistics Plus® network includes offices located in Erie, PA; Alma, AR; Little Rock, AR; Los Angeles, CA; Riverside, CA; San Francisco, CA; Visalia, CA; Atlanta, GA; Chicago, IL; Detroit, MI; Kansas City, MO; Charlotte, NC; Lexington, NC; Buffalo, NY; Cleveland, OH; Charleston, SC; Greenville, SC; Nashville, TN; Dallas, TX; Fort Worth, TX; Houston, TX; Laredo, TX; Madison, WI; Bahrain; Belgium; Canada; Chile; China; Colombia; Egypt; France; Germany; India; Indonesia; Kazakhstan; Libya; Mexico; Poland; Saudi Arabia; Turkey; and UAE; with additional agents around the world. For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.

Media Contact:
Scott G. Frederick
Vice President, Marketing
Logistics Plus Inc.
(814) 240-6881
scott.frederick@logisticsplus.com

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Logistics Plus Attends Twig Talk 2016 Annual Meeting

Logistics Plus Attends Twig Talk 2016 Annual Meeting

Twig-Talk-2016-Animated-GIFLast week, Logistics Plus representatives attended the Twig Talk 2016 annual meeting in Paradisus Playa Del Carmen, Mexico. Logistics Plus was a key sponsor for this year’s Twig Network event which featured independent freight forwarders from more than 60 countries.  The attendees came together for face-to-face meetings, social events, meetings, and workshops. As promised, Twig Talk offered countless opportunities to develop new partnerships and strengthen existing ones.

Representing Logistics Plus at Twig Talk were Jose Francisco Garza Muraira, Ubaldo LizcanoJuan Carrera, and Gabriela Garza. The animated GIF image shown the right showcases a few photographs taken by the LP staff at the event. Also, Gabriela provides the opening comments for the Twig Talk video below.

Twig Talk 2016 from Twig Logistics Network on Vimeo.

Logistics Plus Attends Intermodal South America Conference

Logistics Plus Attends Intermodal South America Conference

Intermodal-SA-2016-Animated-GIFA couple of weeks ago, Logistics Plus representatives attended Intermodal South America. This year’s annual conference was held April 4-6 at the Transamerica Expo Center in São Paulo, Brazil, and featured more than 48,000 qualified professionals from the logistics, cargo transportation and foreign trade industries.

Latin America is one of the fastest growing regions for the logistics, cargo transportation and foreign trade industry worldwide. Brazil alone accounts for more than 350 billion dollars of the region logistics revenue and more than doubled its activities during the last decade. Some interesting facts about the Brazilian market:

  • Considered the 7th largest economy in the world, it should become the 5th by 2025, overtaking the GDPs of France and United Kingdom;
  • In 2012, Brazil attracted US$65.3 billion in foreign direct investment, representing 28% of total FDI in Latin America;
  • Annual spending power of Brazilian households is expected to reach $1.6 trillion by 2020;
  • The country will host the Olympic Games in Rio de Janeiro, 2016

Representing Logistics Plus at this year’s conference were Francisco Tijerina, Nohora GonzalezJose Francisco Garza, and Gabriela Garza. The animated GIF image shown above showcases a few photographs taken by the LP staff at the event.

Hand Carry from Jamestown, NY to Puebla, Mexico in 16 Hours!

We got a call from a customer of ours on Friday around 11 am for a shipment from NY that had to be delivered RIGHT AWAY.  Emily Grein took off to go get the freight while Abi booked her a flight from Buffalo. We also called the customer to make sure that the freight was ready for Emily when she got there (since the plane was leaving in a couple of hours).
Emily made it to the gate in Buffalo JUST IN TIME to make the flight to Atlanta and then connect to a flight to Mexico City where Liz, FT, Pepe, and the Logistics Plus Mexico team did a bang-up job getting a driver to meet her at the airport, clear customs and deliver the freight AT 2:53 IN THE MORNING.
16 hours from the time we were notified until we delivered to Puebla, Mexico. How cool is that?
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