Why Texas is a Prime Location for Nearshoring Manufacturing

Over the years, companies have outsourced manufacturing to distant countries like China in order to reduce production costs. Global supply chain disruptions have recently revealed this model's vulnerabilities. For North American businesses, Texas nearshore manufacturing offers a compelling solution.
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1. Closer to Home: Why Texas is a
Prime Location for Nearshoring
Manufacturing
2024

2. 2
Overview
For decades, companies across the globe have outsourced manufacturing to
distant countries like China for lower production costs. However, recent
disruptions in global supply chains have exposed this model's vulnerabilities.
Enter Texas nearshore manufacturing, a compelling solution that brings
production closer to home for North American businesses.

3. 3
The Rise of Nearshoring and
Why it Matters
Imagine a scenario where you can have increased control over your
manufacturing process, receive faster deliveries, and reduce the environmental
impact of your supply chain. That's the promise of nearshoring. Nearshoring
involves shifting production to a neighboring country, offering several
advantages over traditional offshoring.

4. 4
The Rise of Nearshoring and
Why it Matters
Reduced Lead Times: By nearshoring to Texas, businesses can significantly cut
down on shipping times compared to overseas locations. This translates to
faster product delivery, improved market demand responsiveness, and reduced
inventory carrying costs.
Enhanced Quality Control: Geographic proximity allows for more frequent
communication and oversight of the manufacturing process. This fosters
stronger collaboration between companies and their suppliers, leading to
higher quality products and fewer defects.
Streamlined Logistics: Texas boasts a robust transportation infrastructure,
including major highways, international airports, and inland ports. This
facilitates the seamless movement of goods between the US and Mexico,
minimizing logistical bottlenecks.

5. 5
Why is Texas a Magnet for
Nearshore Manufacturing?
Business-Friendly Environment: Texas is renowned for its pro-business climate,
with low taxes, minimal regulations, and a right-to-work environment. This fosters a
welcoming atmosphere for companies looking to establish or expand manufacturing
operations.
Skilled Workforce: Texas has a strong talent pool with a growing number of
graduates in engineering, manufacturing, and related fields. This readily available
workforce ensures businesses can access skilled labor.
Central Location: Strategically situated in North America, Texas provides easy access
to major markets in the US, Canada, and Mexico. This central location simplifies
distribution and reduces transportation costs.
Cost-Effectiveness: While labor costs in Texas might be slightly higher than in some
Asian countries, nearshoring's overall cost advantage outweighs these differences.
Consider the savings from reduced transportation expenses, streamlined logistics,
and lower import duties. In addition, low-cost labor just across the border in Mexico,
can also offset any shortcoming when staffing your manufacturing project.

6. 6
Why is Texas a Magnet for
Nearshore Manufacturing?
“As nearshoring brings more manufacturing to Mexico, it serves to strengthen
Texas’ ties to our southern neighbor, further boosting our state’s manufacturing
activities. All these conditions give the North American production platform a
competitive edge over East Asia.” - San Antonio Express-News
https://www.expressnews.com/opinion/commentary/article/texas-mexico-nearshoring-18445548.php

7. 7
Conclusion: Texas Nearshore
Manufacturing Offers a Compelling
Solution
In conclusion, the tides are turning in the manufacturing sector. Companies
are increasingly seeking alternatives to traditional offshoring models. Texas
nearshore manufacturing offers a compelling solution, bringing production
closer to home and ensuring enhanced control, efficiency, and agility. With its
business-friendly environment, skilled workforce, and central location, Texas is
poised to become a leader in the nearshoring revolution.

8. 8

9. 9
NovaLink Nearshore Manufacturing
6665 Padre Island Highway Suite B
Brownsville, TX 78521
(956) [email protected]://www.linkedin.com/company/novalink
www.novalinkmx.com