Clients in the News: D.W. Morgan
Is Mexico the Next China?
When fuel prices peaked in 2008, interest in Mexico as a manufacturing source revived. We saw a bump in Mexico, says David Morgan, CEO of D.W. Morgan, reflecting the experience of a number of logistics services companies and anecdotal information from manufacturers themselves.
Third party logistics companies (3PLs), Morgan included, are quick to point out that they follow manufacturing. Logistics is a support for manufacturing, says Morgan, so he goes where his customers want to go. That was the case 15 years ago when the North American Free Trade Agreement (NAFTA) went into effect and more recently, it appears Mexico is once again under consideration as a sourcing destination.
Despite the fact it has been in place for 15 years, NAFTA is a regulatory opportunity, says Morgan. Some of the provisions have not yet been enacted, and there are issues of infrastructure remaining, so he sees an upside potential that Mexico can become a more significant part of US supply chains. There's a real opportunity for manufacturers to reduce the amount of inventory in their pipeline, he points out.
Read the full story at Logistics Today
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