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American Shipper: “Mexico’s thriving auto industry spurring opportunities for 3PLs”

December 28, 2017

Mexico’s thriving auto industry spurring opportunities for 3PLs

The Mexican automobile manufacturing industry has been thriving in recent years as automobile companies continue to set up shop in the nation thanks to relatively cheap labor and facility costs, and proximity to U.S. markets. This growth has provided third-party logistics providers (3PLs) with even more opportunity to ramp up operations within Mexico, along with cross-border operations with the United States.

In an effort to support Mexico’s booming automobile manufacturing industry, Yusen Logistics, the 3PL subsidiary of Japan’s NYK Group, established the Bajio Logistics Center in the Apaseo el Grande area of Guanajuato, Mexico, back in February 2017.

The state of Guanajuato in particular is a hot spot for automobile activity. Honda and Mazda have built large factories within the state over the last few years, while Toyota will start producing Tacoma trucks there in 2019, Jordan Dewart, president of Yusen Logistics Mexico, told American Shipper in a recent phone interview.

The Mexican government has drawn in vehicle manufacturers in part by providing tax incentives and access to cheap land, Dewart said. Inexpensive labor also makes it extremely economical to set up operations in Mexico when compared with the United States.

Read more here.