07/07/2026
Should we nearshore to Mexico or stick with Asia?"
Wrong framing.
The converters winning 2020-2026 didn't choose. They integrated three things:
1) Global sourcing = Cost-competitive foundation (70-80% of volume)
Drives your margin structure. Provides capacity. Delivers material variety. This is your baseline competitive advantage.
2) Local safety stock = Supply continuity (8-12 weeks held nearby)
The missing piece most converters ignore. When global supply is delayed, you produce from local inventory. Your competitors shut down.
3) Nearshore = Strategic flexibility (15-20% of volume, activated when needed)
When tariffs spike—shift to nearshore (0% USMCA). When geopolitical risk hits—activate unaffected alternatives. When capacity tightens—nearshore absorbs spike.
To read the full article, follow the link below.
Integrated supply strategy for US converters: combining global sourcing with strategic local safety stock and selective nearshore capacity to maximize cost efficiency while protecting against supply disruptions.