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IPC COMMUNITY 14 WINTER 2024 INDUSTRY INTELLIGENCE Nearshoring By Shawn DuBravac, IPC Chief Economist Mexico making pivotal move in supply chain dynamics A midst the turbulence of interna- tional trade wars, pandemic-induced supply chain disruptions, and the escalating demands for rapid deliv- ery cycles, businesses are increasingly looking to relocate manufacturing and production operations to countries geographically closer to their core consumer markets. Nearshor- ing's potential promise is not only to mitigate the vulnerabilities of extended supply lines but also to offer agility in responding to con- sumer needs, fostering a more adaptable and resilient business model. In the intricate web of North American com- merce, Mexico has emerged as a pivotal node of manufacturing and production, harnessing a burgeoning tide of investments and business engagements from industries in the United States and Canada. This intensifying trend is underscored by the noticeable decline in Chi- na's dominance as the leading exporter to the U.S. market—a position it has seen erode from over 21% of U.S. imports in 2017 to a mere 13% this year. In stark contrast, Mexico's contri- bution to U.S. imports has experienced an upward trajectory, now accounting for more

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