for nearshorers, costs are king
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For nearshorers, costs are kingInventory and freight costs may be tamed, but labour costs bite
© The Economist Intelligence Unit, 2016.
Source: AlixPartners survey of 143 senior executives from manufacturing and distribution, March 2014.
What are the biggest challenges you have had or expect to have with nearshoring?Respondents were asked to select three choices. Top ten results.
What are the biggest advantages you would expect from a nearshoring decision?Respondents were asked to select three choices.
Capacity, customer approval, localising supply
36%
Availability of skilled labour
33%
Quality and consistency
30%
Labour costs
44%Local regulations
29%
Cross-border transport
16%Personnel
16%
Customs regulations
13%In-country transport
13%Security
14%
Smaller wage gap 7%
Intellectual property security
12%
Lower input costs
13%
Better quality control
19%
Time-zone advantage
18%
Lower inventory costs
67%Lower freight costs
59%Duty and tax benefits
27%
Proximity to customer
42% Fewer supply disruptions
30%