U.S. Chamber of Commerce Study Points Towards Nearshoring

A new study from the U.S. Chamber of Commerce says countries throughout Latin America are well positioned to do business with North American importers over the next five years and urged parties on both sides of the business equation to move ahead to realize the opportunities.

The report "Supply Chain Strategies and Nearshoring Opportunities in the Americas" was one of the outcomes of the recent CEO Summit of the Americas, designed to better understand corporate decision-making around supply chain strategy, investment and sourcing site selection in the Americas region.

The U.S. Chamber has long advocated for closer trade and investment ties between the United States and its neighbors in the Western Hemisphere to generate economic growth, prosperity and stability. The Summit, organized by the Chamber in partnership with the U.S. state department provided a valuable platform for a public-private dialogue on concrete steps to promote inclusive and sustainable growth in the hemisphere.  

As one of the outcomes of the CEO Summit, the Chamber committed to conduct a global survey to better understand corporate decision-making around supply chain strategy, investment, and sourcing site selection in the Americas region.  

Among the additional findings of the study:

• Across the board, U.S. companies are sourcing from multiple suppliers and relying on multiple geographies as the predominant strategies to mitigate supply chain risks. While fewer say that they are currently relying on suppliers close to their customer base/sales hub, nearly half say they are likely to do so over the next year. 
• Countries in the Americas region have the potential to attract new investment related to nearshoring. Of the markets where companies are not currently manufacturing products, Asia, Mexico and South America were identified as the most attractive, with a relatively narrow difference between Asia (15%), Mexico (14%) and South America (11%). 
• Logistics was identified as the most important factor when deciding both where to source materials and where to make direct investments (e.g., shipping costs, lead time for deliveries). For sourcing goods, logistics was an important factor for 99% of mid-sized and small companies and 93% of large companies.
• Labor is an important factor both for sourcing goods (93%) and making a direct investment. Labor was defined as including both costs and skill levels. 

The full report can be downloaded at: https://www.uschamber.com/assets/documents/USCC-INTL-Supply-Chain-Report_Digital_Final.pdf