U.S. Manufacturing Companies Consider Redesigning their Supply Chains - Oradel

U.S. Manufacturing Companies Consider Redesigning their Supply Chains

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U.S. Manufacturing Companies Consider Redesigning their Supply Chains

The United States’ National Association of Manufacturers (NAM) stated that at least 53% of its members are considering redesigning their supply chains after the global situation in 2020.

The 2020 Digital Supply Chain Survey, a Grant Thornton research initiative, indicated that even though the COVID-19 pandemic created widespread disruption in this sector, at least 60% of businesses reported only minor disruptions and are preparing for a redesign. 

NAM reported that it has identified some areas where U.S. companies need to invest in order to continue to make progress in light of this new situation in the industry, as well as the lessons learned from the first few months of the pandemic, during which at least half of the companies had to quickly re-forecast demand as nearly one-third of them were forced to reduce production, and two in five companies began identifying new suppliers while their existing global networks attempted to cope with the initial disruption. 

In addition, the ability to identify risks in the supply chain was analyzed, with only 23% of companies considering themselves very capable of carrying it out, and only 17% say that they are fully integrated with the acceleration of digital maturity. 

As for the use of new technologies, such as artificial intelligence, automatic learning systems and advanced analysis, it was observed that such technologies will enable a better response to challenges, from market changes to global situations such as COVID-19. 

According to NAM, transformation initiatives were already underway in many manufacturing supply chains prior to the pandemic crisis, however, the lessons learned from 2020 have clearly given these plans a new sense of urgency and a clearer focus for the coming years. 

Mexico, more attractive than China to attract investment

According to the Minister of the Economy, Graciela Márquez Colín, Mexico will have better conditions for attracting investments once the COVID-19 pandemic ends, even over countries like China. This is because Mexico has been engaged in a process to attract more global companies for several years, such as current infrastructure projects, in order to promote investment and increase productivity in several key sectors for economic recovery. 

Likewise, Márquez Colín mentioned that in light of the need to relocate companies and supply chains from Asia, particularly from China, in the medium term, Mexico has an opportunity to take advantage of this scenario and attract investments from strategic industrial sectors. Mexico can also encourage companies that are already in the country to expand their production, and therefore be a force of attraction to complete their supply chains and attract companies that do not yet have a presence in Mexico.

Oradel Industrial Center’s location in Nuevo Laredo, Tamaulipas, only 10 minutes away from the US-Mexico border, helps to attract investments in Mexico.

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