Supply Chain and Infrastructure

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The two countries are well-favored in some ways, but they have a couple of disadvantages. Mexico has a strong pool of employees in the manufacturing industry with relatively low-risk exposure to the North American manufacturing industry. The focus is mainly on the automobile and aerospace industry due to Mexico's location in the United States. Nevertheless, wages are relatively higher in northern Mexico. Further, particular skills may only be restricted to the automobile and aerospace industries.

Having a large pool of talent, China has specialization in volume manufacturing and other fields such as electronics. However, wages have started to rise mainly in the coastal regions of China. Thus, in addition to lower wages, specific numerical strengths and geographical accessibility matter in determining which place suits best a company's manufacturing needs.

Mexico and China have vital infrastructure industries. However, there are limitations in some sectors.

In Mexico, one of the strengths is easy access to discuss data neighboring countries in the United States. This accessibility creates excellent opportunities in North American markets. Distribution centers are near major border cities in Mexico, which, in turn, assist in faster and cheaper delivery. This geographic position also implies that Mexico is capable of more frequent shipments. The infrastructure in Mexico has gradually developed, especially in the fields of highways, railways, and ports. It enables Mexico to have an efficient supply chain both internally and externally.

China has also built one of the largest transportation systems to meet the demand of its being a central manufacturing hub. Its network of road, rail, and modern harbors, as well as its strategic location, enables manufacturers to transport their products locally and to other countries easily.

Today, many large and developed ports exist across China, including Shanghai, Shenzhen, and Guangzhou. These are large international ports with high operational capability and efficiency in terms of container handling. The ports can sufficiently support export promotion.

Although the distances are longer, China's shipping times to North America are longer. However, the shipping reliability cannot be challenged since China has many ports in almost all parts of the world and efficient logistics channels.

, China's Besides geographical position is advantageous for Chinese companies to provide services to other Asia countries.

Each location has its benefits, and proximity to key markets is essential.

Mexico can be a perfect choice if a company is mainly oriented on the countries of North America. This suitability is because of its closeness to the United States and Canada under the USMCA agreement. Manufacturers can quickly ship products that require fast distribution from Mexico to the US The distribution only takes a few days compared to the weeks needed to import them from China.