The Emerging Role of Mexico in the Electronics Supply Chain

The globalization of the electronics supply chain has been a widely discussed topic, and having Andrew Hupert, an esteemed supply chain consultant, in this episode is incredibly timely.

In this insightful discussion, Andrew sheds light on Mexico's distinctive edge in electronics production. Furthermore, he provides us with a comprehensive comparison of the logistical aspects between Mexico's and China's production processes.

Key Highlights:

• Introduction to Andrew Hupert, professor at Holt University and Supply Chain Consultant
• Andrew talks about his career in cross-cultural negotiation. From China to Thailand, Vietnam, and now to Mexico
• Compliance costs are becoming unmanageable, and logistics becoming more unpredictable, these are just a couple of the challenges in the electronics supply chain
• NAFTA (North America Free Trade Agreement ) aka USMCA, the US, Mexico, and Canada agreement puts Mexico on top of the list as far as production sites for large-scale factories
• US trade agreement with Columbia, is it possible?
• Guadalajara is in the process of becoming the software center in Mexico
• Andrew describes the challenges of sourcing electronics products from Mexico
• In China, one person knows people who can give you all the necessary connections to start and finish a project, meanwhile in Mexico, people will keep their mouths shut
• The level of workmanship in Mexico is high, however, project management is very poor
• The auto industry is the kind of business that is built for Mexico. American automakers have been producing automobiles in Mexico for over 70 years
• Mexico has EMEC which allows companies to bring in equipment, materials, raw materials, or components, all of it duty-free provided they ship it out or export it and not for sale in Mexico
• Andrew gives his insight on what the supply chain will look like
  • Only a certain percentage of the electronics production will move out of China to Mexico
  • Sophisticated design based in the US such as Texas, Arizona, California, and Mexica can handle the assembly
• Apple is moving its production to India
• “India is a tough one”, Andrew explains the challenges in producing electronics in India
• GM (General Motors) moved all their electric vehicle manufacturing to Mexico
• It’s hard to get business intelligence on Mexico, Andrew encourages companies to plan their transition or hire a project manager to do the legwork