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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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/R E P E A T — MEDIA ADVISORY – Government of Canada to Make a Critical Minerals Infrastructure Announcement/

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October 7, 2024

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THUNDER BAY, ON, Oct. 4, 2024 /CNW/ – The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources; the Honourable Patty Hajdu, Minister of Indigenous Services and Minister responsible for the Federal Economic Development Agency for Northern Ontario; and Marcus Powlowski, Member of Parliament for Thunder Bay–Rainy River, will make a funding announcement in support of critical minerals infrastructure projects in Ontario. A media availability will follow. 

Date: Monday, October 7, 2024

Time: 1:30 p.m. ET

All accredited media are asked to pre-register by emailing media@nrcan-rncan.gc.ca. A dial-in line is available for media and will be provided upon registration.

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SOURCE Natural Resources Canada

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ez1099 Version 2024 Is Now Ready For Processing 1099 Forms For the Upcoming Tax Season

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October 7, 2024

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The 2024 update of Ez1099 has just been released enabling companies and tax professionals to get a jump start on the upcoming tax form season. Download and test drive at no cost or obligation at halfpricesoft.com.

SAN FRANCISCO, Oct. 7, 2024 /PRNewswire-PRWeb/ — ez1099 2024 tax form preparation software from Halfpricesoft.com is now available for companies and accountants to get a jump start on the fast approaching 2025 tax season. The software is available in print and mail, efile, PDF and network versions (prices vary).

Accountants are accommodated with the newest edition of ez1099 2024 to help businesses get a running start on the upcoming 2025 tax season.

ez1099 software streamlines the preparation, printing, and e-filing of essential IRS forms, including W2G, 1097BTC, various 1098 forms (1098, 1098C, 1098E, 1098F, 1098Q, 1098T), numerous 1099 forms (1099A, 1099B, 1099C, 1099CAP, 1099DIV, 1099G, 1099INT, 1099K, 1099LTC, 1099MISC, 1099NEC, 1099OID, 1099PATR, 1099Q, 1099QA, 1099R, 1099S, 1099SB, 1099SA), 5498 forms (5498, 5498ESA, 5498QA, 5498SA), as well as 8935, 3921, 3922, and 1096 forms.
Download and test today to get ready for the upcoming tax season at https://www.halfpricesoft.com/1099_software.asp

“Accountants are accommodated with the newest edition of ez1099 2024 to help businesses get a running start on the upcoming 2025 tax season.” Dr. Ge, Founder of Halfpricesoft.com states.

The options featured in the latest version ez1099 software include but are not limited to:

ez1099 prints out recipient copies on plain white paper.

Quick data importing feature and bulk printing feature

Support unlimited accounts and unlimited recipients with one flat rate

Supports compiling and saving form data for later use and modification

Go green with optional PDF document converting and e-file (electronic filing) features

From $79, ez1099 is among the lowest priced, full-featured software available

No cost customer support with live chat, email and remote access

Fill tax data on pre-printed forms

Cost is only $79 per installation for the basic version of ez1099 Software or $139 per installation for the advanced version with bulk printing feature, import feature, PDF file creation and electronic filing capability. As always, customers are encouraged to download and try ez1099 without any risk, cost or obligation at https://www.halfpricesoft.com/1099_software.asp

About halfpricesoft.com Halfpricesoft.com is a leading provider of small business software,
including online and desktop payroll software, online employee attendance tracking software, accounting software, in-house business and personal check printing software, W2, software, 1099 software, Accounting software, 1095 form software and ezACH direct deposit software. Software from halfpricesoft.com is trusted by thousands of customers and will help small Business owners simplify payroll processing and streamline business management.

Media Contact

T. Bernard, halfpricesoft.com, 502-259-0936, services@halfpricesoft.com, halfpricesoft.com

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View original content to download multimedia:https://www.prweb.com/releases/ez1099-version-2024-is-now-ready-for-processing-1099-forms-for-the-upcoming-tax-season-302259646.html

SOURCE halfpricesoft.com

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iKala KOL Radar Surpasses 300 Million Influencers, Leading Global Cross-Border Influencer Marketing with AI

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October 7, 2024

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KOL Radar expands its data coverage to 190 countries, empowering global brands to capitalize on cross-border influencer marketing.

TAIPEI, Oct. 7, 2024 /PRNewswire/ — iKala, a leading AI transformation solutions provider from Taiwan, announced that its AI-powered influencer marketing platform, KOL Radar, now officially includes over 300 million influencers across 190 countries and multiple platforms. Leveraging its exclusive AI technology, KOL Radar analyzes nearly 6 billion social data monthly, empowering brands with multi-market influencer insights to accelerate customer acquisition. KOL Radar will continue to introduce new feature upgrades, offering brands a more comprehensive AI-based influencer marketing search and analytics service.

Rapid Product Upgrade! KOL Radar Expands to Include over 300 Million Influencer Profiles across 190 Countries
As post-pandemic globalization accelerates, and in response to the growing demand for cross-border influencer marketing, KOL Radar announced today the official inclusion of over 300 million influencer profiles in its global database, now covering 190 countries and spanning major social platforms such as Facebook, Instagram, YouTube, TikTok, and Twitter. Leveraging exclusive AI and data analytics technology, KOL Radar has fully integrated influencer resources from 190 countries. With this expansion, KOL Radar has become the world’s largest influencer search and analytics platform, empowering brands to effectively capture cross-border marketing opportunities and expand their global influence.

iKala continues to leverage its leading AI and data analytics capabilities to empower KOL Radar, providing real-time and precise AI-driven influencer marketing insights, helping brands efficiently develop optimized marketing strategies. To address key challenges such as estimating campaign performance and managing influencer resources, KOL Radar is launching two major feature upgrades to enhance both the “pre-evaluation” and “post-evaluation” processes. Brands will be able to select influencers, and through KOL Radar’s exclusive AI and data analytics technology, estimate key metrics like post reach, shares, and likes. This assists brands in accurately estimating the public praise value and also allows them to export comprehensive proposals in just one click. In addition, KOL Radar will introduce a “Directory” feature, which automatically consolidates all interactions, records, unlocked, and previously collaborated influencers, enabling brands to easily search and manage influencer assets and streamline campaign management.

KOL Radar Organizes Global Influencer Resources, Empowering Brands to Precisely Capture Insights for Cross-Border Marketing
As the world’s largest AI-powered influencer database, KOL Radar integrates influencer data from multiple countries and industries, leveraging iKala’s exclusive AI technology to provide the most comprehensive trends, strategies, and analytical insights in cross-border influencer marketing. This enables enterprises to access an all-in-one influencer marketing solution tailored to their target markets, business challenges, and consumer preferences. Offering end-to-end support for influencer selection, data tracking, and performance evaluation, KOL Radar empowers brands to efficiently expand into new overseas markets and achieve more effective cross-border influencer marketing campaigns.

iKala Co-Founder and CEO, Sega Cheng, stated, “With this achievement, we have reached our ambitious goal of organizing global influencer information through AI, becoming the world’s largest cross-border influencer search and analytics platform. As iKala’s generative AI rapidly advances in search, reasoning, and innovation capabilities, KOL Radar will provide marketers with unprecedented market insights and remarkable productivity gains. This responds to the growing demand for cross-border marketing from global enterprises, with a particular focus on the influencer marketing opportunities in regions such as North America and Eurasia.”

About iKala
iKala is a leading AI transformation solutions provider, with a mission to “enable AI competencies” of enterprises by providing AI-driven cloud management and MarTech solutions, to optimize their operational efficiency and increase customer engagement. iKala’s solutions and SaaS products are available in 190+ countries, enabling over 1,000 enterprises and 50,000 brands and advertisers, including top-tier Fortune 500 companies, to transform their business.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/ikala-kol-radar-surpasses-300-million-influencers-leading-global-cross-border-influencer-marketing-with-ai-302268686.html

SOURCE iKala

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