Baja California represents a great option in talent and productivity for the industry

Luis Manuel Hernández pointed out that Baja California offers great advantages for the continued strong development of the industry through new manufacturing production alternatives known as re-shoring and near-shoring.

The Chairman of the Maquiladora and Export Industry Association (Index) mentioned that the global manufacturing is moving from a cost reduction (cost-effective) approach to a value-creation approach.

He indicated that it is no longer a question of being the cheapest in the market, but the best, and this can be achieved through 2 new ways of carrying out outsourcing; with the so called near-shoring, i.e. outsourcing services in countries bordering with the organizations’ final client and re-shoring, the return of operations to their country of origin.

He added that both practices seek to correct certain disadvantages of off-shoring, as such practice dominated the manufacturing scene in the 1960s and 1970s, including: enlargement of supply chains, cultural differences (including language) and the obstruction of the operations across time zones.

He expressed that almost all these drawbacks are corrected through near-shoring and re-shoring, and this represents a unique opportunity for Baja California.

He added that the State has urban centers, developed workforce, a diversified economy and increasing specialization levels.

Luis Manuel Hernández reiterated that State’s current conditions are perfect for the industry to develop strongly through re-shoring and near-shoring.

He considered that there are two immediate ways to take advantage of this moment: first, to strengthen the regulation to facilitate the practices described above; and second, to make a strong commitment to specialized personnel training, especially in the use of new 4.0 technologies.