Bringing Manufacturing Back to North America

Bringing Manufacturing Back to North America

Reprinted with permission. Alliance, No. 32. “Bringing Manufacturing Back to North America,” pages 38- 39. Alliance is a publication of the U.S-Mexico Chamber of Commerce.

By Plastiexports  | 5 min read

Global and U.S. supply chains have experienced unprecedented disruptions as companies continue to be negatively impacted by multiple major catastrophes such as the COVID-19 pandemic and countless issues in Asia, specifically China. As the novel coronavirus outbreak rapidly expanded over the past year to almost every part of the world, it brought to light the excessive reliance and overexposure that many U.S. companies’ supply chains have on China. While industry experts have warned about these issues for two decades, we’re now living the reality of this situation. This new reality makes it increasingly important that Mexican and American companies team up to have complete, integrated supply chains between our two countries.

Having American companies collaborate with Mexican factories has multiple benefits. This is best showcased through a recent example of Plastiexports and Shoreview Management Advisors teaming up to provide a complete supply chain solution to Olde Thompson, a spice and spice-related housewares company.

New Market and Growth Opportunities for Mexican Manufacturers

In 2019, Shoreview Management Advisors began searching throughout Mexico for a factory that would be able to manufacture precision injection-molded assemblies at costs competitive with China. Over 40 factories were involved in the initial screening, among them was Plastiexports. This project necessitated developing capabilities that did not exist in Mexico at that time. It required challenging the traditional business model that most companies had operated within for many years.

This venture represented both an opportunity to open the door to a new market and challenge to submit in record time a proposal that complied with food industry standards.

Future Investments Bring Outsized Returns

Quickly adapting to customer needs is embedded in Plastiexports’ DNA. As such, Plastiexports decided to make substantial investments to accommodate the manufacturing and assembly of plastic components for the food industry. Designing and installing automated assembly cells, as well as procuring new electric injection molding machines in a clean room environment, were some of the steps that Plastiexports took to exceed the customer’s needs and expectations. This attention to detail in turn ensured the program became a success.

As a company focused on reacting quickly to changes, Plastiexports offers tailor-made solutions for customers who are looking to relocate their supply chains within North America and Mexico. This agility and degree of personalization will enable U.S. companies to have a secure, robust supply chain close to home.

Working closely with Shoreview Management Advisors as a team, allowed Plastiexports to develop and execute the localization of a substantial amount of business from Asia to North America, helping Olde Thompson reduce costs and lead times. A further improvement to the supply chain is underway for these assemblies and involves the localization of ceramic parts in Mexico that had historically been produced in China.

“The current market situation opens multiple opportunities for manufacturing companies in Mexico and the United States, but the winners will be those companies that are willing to make investments in these uncertain times and those who are able to build an ecosystem of several industries to serve customers,” according to Plastiexports CEO Baldwin Britton.

As a result of the responsiveness of the Plastiexports team and their overall competitiveness, Shoreview Management Advisors is working with Plastiexports on several larger projects that need additional machines and factory workers.