How Safe is the Mexican Supply Chain?

Cushman & Wakefield's new study is bullish on the prospects for Mexico’s rapidly growing seaport infrastructure, but U.S. supply managers may still be wary of investing there.

Gonzalo Gutierrez, Cushman & Wakefield's executive director – Monterrey Northeast Region, Industrial Brokerage Services, admits that Mexico has faced a major challenge in its fight against organized crime.

In an interview with SCMR, he noted that the Mexican and U.S. governments are working together to weaken the network of crime, and there has never been closer cooperation between the two countries.

With that said, information about the situation in the country must be put in perspective. ”Mexico's underlying story is strong and getting stronger, added Gutierrez. Notwithstanding the current drug-related violence, the foreign direct investments for huge OEM's and other big manufacturing companies still arriving every year, the country's macroeconomics are in good shape; foreign visitors keep coming back to visit despite the unsavory news headlines; foreign governments are actively courting trade and commerce with Mexico; and expats living here are going about their lives normally; and according to Mexico Insight statistics continue to show that the courntry’s levels of general crime and violence continue to be lower than those of most large U.S. cities.

Visitor numbers are rising: The Bank of Mexico is responsible for collating and publishing foreign visitor statistics. Earlier this year, the figures showed that over 22 million foreign visitors arrived in Mexico on 2013. Despite the swine-flu of 2009, the global economic crisis, and the drug-violence, people keep coming to Mexico. Statistics from foreign consulate records show that the overwhelming majority of visits to Mexico are trouble-free.

Finally, there’s no expat exodus. In decades past, when Mexico's economy was less certain and less stable, foreign expats would often flee home in the event of a peso crisis. Today, even with the drug-related violence playing out, no such exodus is taking place. Indeed, interest in relocations to Mexico is rising.

Supply chain managers seeking another perspective on security in Mexico’s ports - and ports throughout the world - may wish to contact another valued SCMR resource: Albert Saphir, president of Bradenton, Fla.-based ABS Consulting. He’ll be staging his annual conference in Florida this fall, and it promises to provide exclusive market intelligence on the issue.

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