As U.S. companies grapple with the high cost of fuel and the weak U.S. dollar, Mexico could see increased manufacturing activity from companies that can’t afford to ship product to and from places such as China and India.

      Historically, the Mexico economy has mirrored the U.S. economy, but Scott Satterlee, C.H. Robinson senior vice president, says Mexico is better positioned to weather this crisis.

      “There are a lot of people who feel Mexico is so directly connected to the U.S. economy that there is going to be an effect on Mexico,” he says. “But in a global supply chain, the weak dollar, higher fuel prices and transit times into the United States make Mexico more attractive. It’s actually a plus on the logistics side.”

      C.H. Robinson, a global provider of multimodal transportation services and logistics solutions, operating through a network of branch offices in North America, Europe, Asia, and South America, has provided transportation and logistics services in Mexico for more than 17 years. It is a non-asset based transportation provider, meaning it does not own the transportation equipment used to transport its customers’ freight.

      Its carrier base includes motor carriers, railroads (primarily intermodal service providers), air freight, and ocean carriers. In 2007, it worked with approximately 45,000 transportation providers. Approximately 75 percent of its truckload shipments in 2007 were transported by motor carriers that had fewer than 100 tractors. In its truckload business, no single carrier represents more than 1 percent of its carrier capacity.

      Its branch network is a major competitive advantage. Building local customer and carrier relationships has been an important part of its success, and a worldwide network of offices supports the core strategy of serving customers locally, nationally, and globally. In Mexico, it has branches in Nuevo Laredo, Monterrey, Querétaro, Mexico City and Guadalajara. It also has offices on the U.S. side of the border in McAllen, Laredo, El Paso, Edinburg, Nogales and San Diego.

            The branch offices help it penetrate local markets, provide face-to-face service when needed, and recruit contract carriers. The branch network also gives it knowledge of local market conditions, which is important in the transportation industry because it is so dynamic and market-driven...

...Continued in the pages of Twin Plant News, Subscribe Today!