This article is written by Austin Garcia
The nearshoring trend is rapidly gaining momentum as companies prioritize supply chain security, seek low-cost environments, and favor geopolitically stable locations. This shift holds significant implications for the United States.
According to the Wilson Center, 11-13% of trade jobs across the United States are linked to trade with Mexico, demonstrating a strong connection even in “middle America.” For instance, Oklahoma alone has over 60,000 jobs tied to this bilateral trade. Proximity to the border further amplifies this impact, with border communities benefiting from essential infrastructure like Customs houses, cross-docking operations, trucking lines, and rail that facilitate the movement of goods. As more companies recognize the benefits of nearshoring, the ties between Mexico and the U.S. are deepening, creating an unbreakable bond of supply chain security.
Mexico’s manufacturing activity directly fuels job creation and high-value service employment in the United States. By leveraging Mexico’s competitive labor costs, U.S. companies can maintain their global competitiveness. While some lower-skilled manufacturing roles may relocate to Mexico, higher-skilled jobs such as engineering, design, research, and development are often retained or created in the U.S. This fosters a more diverse and skilled American job market.
As manufacturing becomes increasingly advanced and technologically driven, the demand for these high-value services in the U.S. grows. Companies require specialized support in areas like engineering design, technical support, logistics, and marketing to underpin their operations in Mexico. These service jobs generate significant income and drive innovation, contributing directly to the U.S. Gross Domestic Product (GDP) and boosting economic prosperity.
In essence, the integrated bond and mutual benefits derived from nearshoring strengthen both nations. The close geographical proximity ensures easy access and substantial advantages for both sides. It’s clear why the growth of trade jobs in the U.S., particularly those linked to nearshoring, continues to thrive.
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