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Is Nearshoring to Mexico Hitting a Wall? MES Offers Solutions for Resilient Supply Chains

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MES offers solutions for companies facing challenges with nearshoring in Mexico. The rising peso, high borrowing costs, inflation, and labor shortages are impacting Mexican suppliers. MES’s expertise in sourcing and supply chain management can help North American companies navigate these complexities and build resilient nearshoring strategies.

LEWIS CENTER, Ohio, Oct. 7, 2024 /PRNewswire-PRWeb/ — As a manufacturer based in Mexico, you were excited to hear about the benefits of nearshoring. The idea of relocating your operations closer to home and taking advantage of lower costs and quicker delivery times was too good to pass up. However, as the year 2025 approaches, you find yourself facing unexpected challenges that are stalling your nearshoring initiative.

MES is committed to helping North American companies achieve their nearshoring goals in Mexico. Our expertise in sourcing and supply chain management can help navigate the challenges and build resilient partnerships.

With the strained relationship between the US and China post-COVID, many manufacturers are focusing on nearshoring, often moving operations to Mexico. However, across various manufacturing processes—plastics molding, extrusions, castings (aluminum and iron), forgings, rubber, and chemicals—Mexico’s capacity falls short of North American market demands.

1.) USD to Pesos Exchange Rate: Most surveyed suppliers conduct over 90% of their business in USD. For the past decade, this has helped Mexican businesses combat inflation as the peso weakened. Recently, the peso has strengthened, likely due to the significant investments being made in Mexico. This shift has pressured prices and sales contracted between 2015 and 2023. For instance, a contract negotiated at an exchange rate of 20 with an annual value of $1 million now brings in only $700,000 due to the exchange rate change to 17 in 2023. This situation is beyond the suppliers’ control.

2.) High Borrowing Costs: Mexico’s borrowing interest rate is at a generational high. The costs of borrowing have increased significantly, and stricter underwriting has tightened credit lines. Many real estate and other loans are tied to USD, adding pressure on suppliers. If debt was written in USD instead of pesos, suppliers are paying 15% more for debt service due to exchange rate changes, in addition to a 5% interest rate increase. Suppliers with even minimal debt are struggling with payables, labor, and energy costs.

3.) Inflation in Mexico: The Big Mac Index, a proxy for inflation, indicates a significant rise in costs within Mexico. The majority party has implemented generous labor policies to improve living standards, and their recent election victory suggests these inflationary policies will continue, along with increased labor subsidies.

4.) Rising Labor Costs: From 2008 to 2021, inflation in Mexico was modest, and labor costs remained manageable, ranging from $6 to $8.50 per hour. The Labor Index rose from 58.09 to just over 100 in 2020 and has doubled in the past three years, putting additional pressure on manufacturers. Growth in delivery and e-commerce jobs offers similar incomes, making many young people reluctant to take manufacturing jobs.

Conclusion

Mexican manufacturers are becoming hesitant to provide long-term pricing, which is essential for Fortune 500 companies’ planning. They are also passing on labor and energy costs. If your Mexican supplier is unwilling to negotiate, giving capacity to other customers, or unable to meet delivery requirements, financial and labor issues are likely at the core.

North American customers should be empathetic towards these manufacturers. Sourcing and supply chain companies like MES have developed creative ways of working with suppliers that larger companies may not match. Contact us at sales@mesinc.net to discuss how we can help you navigate Mexico sourcing and supply chain challenges, leveraging a range of supplier engagement methods for resilient nearshoring solutions.

Over two-thirds of executives interviewed by McKinsey and other consulting groups have listed nearshoring as a top initiative. Investments in greenfield manufacturing setups and supplier development in Mexico are increasing. Despite these efforts, there are significant challenges facing Mexican manufacturing and its supply base.

Media Contact

Zach Hamner, MES Inc, 6143075159, zhamner@mesinc.net, www.mesinc.net

View original content:https://www.prweb.com/releases/is-nearshoring-to-mexico-hitting-a-wall-mes-offers-solutions-for-resilient-supply-chains-302245086.html

SOURCE MES Inc

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Appy Pie’s No-Code AI Design Platform Simplifies Holiday Creations for Christmas Posters and Avatars

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December 21, 2024

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NEW DELHI, Dec. 21, 2024 /PRNewswire/ — Appy Pie Design, a leading No-code AI Design Platform, offers businesses and individuals an easy way to create Christmas posters and avatars for this upcoming holiday season. With its enhanced suite of AI-powered tools, the platform allows users to design festive visuals effortlessly, making it a go-to choice for creative holiday solutions.

Also, users can create unique, seasonally-themed avatars to showcase their holiday spirit across social media and professional platforms. These Christmas avatars can be used to personalize social media profiles, email signatures, or even professional platforms, spreading holiday cheer in both casual and formal settings.

“Our platform is designed to make the holidays easier and more joyful for everyone,” said Abhinav Girdhar, CEO of Appy Pie. “By providing accessible and creative solutions, we aim to help users connect meaningfully during this festive season.”

The AI Animation Generator enables users to bring their holiday ideas to life with engaging and dynamic visuals. The platform provides flexibility and convenience, making it an indispensable tool for celebrating the holiday season creatively and efficiently.

For those looking to turn static visuals into dynamic content, the Image to Video AI tool transforms still images into alluring videos. This functionality adds a new dimension to holiday designs, making them more interactive and impactful.

About Appy Pie
Appy Pie, a Trademark of Appy Pie LLP, is a leading global platform offering a suite of no-code, AI-powered tools, including an app builder, website builder, workflow automation platform, graphic design software, chatbot builder, help desk software, and live chat software, to help businesses and individuals design, build, and automate. With a user-friendly interface and a wide range of customizable templates, Appy Pie empowers users to create professional-grade applications, websites, and automation without coding expertise. Appy Pie caters to diverse needs from entrepreneurs to established enterprises by providing innovative solutions for various industries.

Media Contact
Abhinav Girdhar
sales@appypie.com
+1 888 322 7617

View original content to download multimedia:https://www.prnewswire.com/news-releases/appy-pies-no-code-ai-design-platform-simplifies-holiday-creations-for-christmas-posters-and-avatars-302337846.html

SOURCE Appy Pie

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The Art of Lightness: ASUS to Unveil World’s Lightest Copilot+ PC

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December 21, 2024

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LAS VEGAS, Dec. 21, 2024 /PRNewswire/ — ASUS is set to debut the world’s lightest Copilot+ PC during the AIways Incredible launch event on January 7, 2025. This groundbreaking laptop redefines ultra-light, AI-powered performance and will kick off CES 2025 with a live global stream.

Join the AIways Incredible Launch Event Online:

Date: January 7 at 9:00 AM PST

Event Page: https://asus.click/ces25_teaser

Teaser Video: https://www.youtube.com/watch?v=TLgFyI5jnbQ 

This latest solution will be part of the ASUS Zenbook series of laptops and offers several innovative aspects to look forward to.

The Art of Lightness Meets Next-Gen Technology

The ultra-light design of the world’s lightest Copilot+ PC is set to redefine possibilities for mobility on AI devices, offering a portable partner and collaborator for the modern user. It is the perfect blend of elegance and functionality, offering a seamless experience for professionals, creators, and everyday users alike. Inspired by minimalism and nature, the design philosophy celebrates quiet luxury without sacrificing innovation.

Intelligent Innovation with Copilot+ AI

The new Zenbook is more than a laptop—it is a smart partner designed to revolutionize productivity. Powered by Copilot+ AI, it delivers intuitive, adaptive workflows, seamless collaboration, and smarter performance tailored to user needs.

Performance Without Compromise

Despite its ultra-light design, the laptop boasts robust performance and an impressive 32-hour battery life, offering continuous productivity that makes it ideal for travelling, remote work, and on-the-go productivity. Full specs, including details of the cutting-edge processor, will be unveiled during the event.

AIways Incredible at CES 2025

The launch marks a key milestone for ASUS in shaping the AI era. Viewers around the world will discover the complete AI-powered capabilities of the revolutionary Zenbook, redefining the future of computing.

Tune in on January 7 to experience AIways Incredible for yourself: https://asus.click/ces25_teaser

About ASUS
ASUS is a global technology leader that provides the world’s most innovative and intuitive devices, components, and solutions to deliver incredible experiences that enhance the lives of people everywhere. With its team of 5,000 in-house R&D experts, ASUS is world-renowned for continuously reimagining today’s technologies for tomorrow, garners more than 11 awards every day for quality, innovation, and design, and is ranked among Fortune’s World’s Most Admired Companies.

View original content to download multimedia:https://www.prnewswire.com/news-releases/the-art-of-lightness-asus-to-unveil-worlds-lightest-copilot-pc-302337417.html

SOURCE ASUSTek Computer INC.

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IGF 2024 Concludes 19th Edition, Calling for Enhanced Digital Cooperation and Sustainable Development

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December 21, 2024

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RIYADH, Saudi Arabia, Dec. 21, 2024 /PRNewswire/ — The Internet Governance Forum (IGF) successfully concluded its 19th edition, hosted in Riyadh at the King Abdulaziz International Conference Center from December 15 to 19, 2024. Organized by the United Nations, the event featured over 100 experts, specialists, officials, and stakeholders from 160 countries, alongside more than 1,000 international speakers.

The forum served as a distinguished platform for global digital transformation experts, fostering discussions on artificial intelligence and digital innovation. It provided an opportunity for the exchange of experiences, information, and best practices, while addressing emerging digital challenges and collaboratively identifying solutions across governments, private enterprises, and non-profit sectors.

This year’s edition was held under the theme “Building Our Multistakeholder Digital Future” and centered around four key sub-themes: Harnessing Innovation and Balancing Risks in the Digital Space; Enhancing Digital Contribution to Peace, Development and Sustainability; Advancing Human Empowerment and Inclusiveness in the Digital Age; and Improving Digital Governance for the Internet We Want.

Discussions focused on achieving a shared understanding of how to maximize the global internet’s potential, mitigate risks, and address challenges to support the United Nations’ Sustainable Development Goals (SDGs). Key topics included leveraging digital innovation while addressing associated challenges, supporting strategic digital government initiatives, and promoting global peace and sustainability through digital tools.

His Excellency the Minister of Communications and Information Technology, Eng. Abdullah bin Amer Alswaha, expressed his great pride in the forum’s success, saying, “This year’s edition of the forum is the largest to date in terms of participants and working sessions, as confirmed by the United Nations. As one of the fastest-growing countries in the digital sector, Saudi Arabia is committed not only to facilitating internet access and harnessing technological developments to drive progress and sustainable development, but also to enhancing digital cooperation to achieve the SDGs.”

The forum’s activities featured a strong presence from public and private sector institutions and international entities dedicated to enabling digital transformation and fostering innovation. Success stories were showcased, demonstrating how these entities have accelerated digital government services for the benefit of society. Sessions and workshops addressed critical digital challenges, transformative applications of digital innovations, and opportunities for adopting and expanding access to digital technology and governance.

Participants engaged enthusiastically in interactive sessions with experts who shed light on diverse aspects of internet governance and digital collaboration, responding to inquiries and providing valuable insights. These interactions offered Saudi national cadres and emerging talents an exceptional opportunity to expand their knowledge and expertise.

The forum was an opportunity to showcase the Kingdom’s great capabilities in communications and information technology, the tremendous digital developments and achievements in e-commerce, banking, healthcare services, and official government transactions.

The forum also served as a platform to highlight Saudi Arabia’s remarkable advancements in communications and information technology, including progress in e-commerce, banking, healthcare services, and official government transactions. It reaffirmed the Kingdom’s rapid strides in building a thriving digital economy, its leadership in promoting digital inclusion, and its efforts to bridge the global digital divide in alignment with the UN’s SDGs.

By hosting the 19th edition of IGF, Riyadh reaffirmed Saudi Arabia’s commitment to solidifying its position as a global leader in digital innovation, international cooperation, and shaping the future of internet governance.

For more information about the Internet Governance Forum, please visit: https://www.intgovforum.org/en

For more information about the Digital Government Authority, please visit: https://dga.gov.sa/en

View original content:https://www.prnewswire.com/apac/news-releases/igf-2024-concludes-19th-edition-calling-for-enhanced-digital-cooperation-and-sustainable-development-302337853.html

SOURCE Internet Governance Forum

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