Mexico Offers a New World of Opportunities

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Mexico has seen it all -- ancient civilizations, colonization, independence, a revolutionary civil war, and other internal and external conflicts aplenty. But with relative stability since the 1930s and increasingly rapid modernization, the nation now presents both numerous opportunities and some important challenges for enterprising firms around the world.

If your company is interested in doing business in Mexico, whether to source production, to optimize assembly and distribution, or to explore sales opportunities in the nation's fast-growing business and consumer markets, you're not alone. With labor rates, freight and inventory costs, and in some cases, quality issues rising for those operating in China and other traditional hotspots, many companies are exploring alternatives.

Mexico might well make sense for businesses also seeking ever-faster time to market, particularly if you are moving goods in or out of the United States. Thanks to the North American Free Trade Agreement, now in its 20th year, U.S.-Mexican trade now is almost equal to U.S.-Chinese trade. In 2013, NAFTA and the near-sourcing trend enabled Mexico to become the world's 10th-largest economy in GDP purchasing power, according to the International Monetary Fund, with 3 percent economic growth expected this year.

As the world's 11th-largest country by population, which grew 1.2 percent in 2013 (matching India while outpacing Brazil, China and the other top-10 markets), Mexico is on the move. Foreign direct investment here in 2013 reached a record $35 billion, and Mexico ranks a respectable 53rd (out of 189 countries) on the World Bank's ease-of-doing-business index.

Challenges persist, however. Within Mexico, the largest metropolitan areas are among the most difficult places to do business, and the nation overall is a study in contrasts, with high levels of inequality in education, health and income; severe crime and corruption; and infrastructure issues putting the brakes on Mexico's otherwise rapid progress. In response, the country is implementing a wide-ranging set of reforms to spur productivity and competitiveness and increase regulatory efficiency; one key measure will open up the state-dominated energy sector for foreign investment.

Finding the right partner

Given Mexico's challenges and potential, perhaps nowhere else is it more important to find the right partner to guide your business. With freight forwarding locations in the three largest markets and 12 contract logistics facilities with a total of 67,000 m2 of dedicated and multi-client space throughout the country, UTi has the resources and relationships to help you succeed.

Our partnerships with the leading air, ocean, road and intermodal carriers in-country are supplemented by our unique UTi NAFTA cross-border service. Building on our long-term relationships with the relevant government agencies to ensure compliance and enable the efficient movement of your cargo, UTi's operations in the U.S., Mexico and Canada have joined forces to develop an end-to-end solution combining core services such as customs brokerage, contract logistics and road freight to provide a seamless flow of goods throughout North America.

Throughout the shipping process, our in-house brokerage services in the U.S. and Mexico provide complete visibility and control. With multi-modal options, distribution centers near primary border crossings, and collaborative multi-client freight consolidation, we're sure to find a fit that's right for you.

UTi combines its capabilities to handle your goods for movement in and out of Mexico as well as storage and distribution within Mexico, and we provide logistical support for both inbound manufacturing operations and finished product fulfillment. Whether your goods are standard cargo or high-value, temperature-controlled or dangerous goods, UTi can meet your specific needs.

In Mexico, UTi is certified to ISO 9001: 2008, TS 16949, AIB, FDA, GMP, C-TPAT, SmartWay, LEED, SOX and BASC. We are proud to work here with some of the world's best companies across a wide range of industries, and we look forward to discussing how we can deliver quantified value and competitive advantage for your supply chain. Learn more from UTi Mexico National Sales Manager Antonio Soda.

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