Lower Costs, Faster Shipping, and Just-in-Time Supply Chains

Long supply chains aren’t working like they used to. The lingering effects of the pandemic and rising global tensions have exposed the cracks in long-distance manufacturing networks. As a result, companies are taking a hard look at where they produce — and how to move goods faster, safer, and at lower cost.

For many, the solution lies just across the border in Mexico. With close proximity to the U.S., competitive labor costs, and a growing network of companies that help businesses set up their manufacturing, the country has become a strategic hub for modern production.

In this blog, we’ll explore why nearshoring to Mexico makes logistical sense and how NAPS helps U.S. companies take full advantage.

The Cost Advantage of Mexico’s Proximity

Shipping from Asia to the United States typically takes 25 to 40 days. Add in volatile fuel prices, container shortages, and port bottlenecks, and timelines — and costs — can spike quickly. By contrast, manufacturing in Mexico cuts transit time to just one to five days by truck.

That proximity delivers real savings. Shorter lead times cut warehousing expenses, minimize the risk of costly last-minute air shipments, and reduce the need for buffer inventory. For margin-sensitive industries like apparel and consumer goods, lowering logistics costs is essential to staying profitable.

Many of these advantages are made possible thanks to Mexico’s well-developed infrastructure. The country’s numerous manufacturing hubs are built for efficient freight flow, with cross-border rail, highways, and streamlined customs. U.S. companies aiming to simplify operations and improve financial performance will find few supply chain shifts that match this level of speed and cost savings.

Why Nearshoring to Mexico Outpaces China in 2025

The country’s rising logistics advantage is translating into global trade dominance, with Mexico having surpassed China as the top exporter to the United States.

Ongoing tariffs on Chinese goods, coupled with supply chain uncertainty and tightening global trade policies, have made China less predictable. Meanwhile, the cost of Chinese inputs continues to rise, eroding the long-held price advantage.

Mexico, by contrast, offers a more stable, strategically aligned alternative. It provides direct access to North America’s markets, faster delivery times, and lower transportation costs. In fact, a PwC study reports that nearshoring to Mexico can reduce operating costs by up to 23% compared to China.

USMCA & Free Trade Agreements Create a Logistics Edge

One of Mexico’s biggest advantages is its trade policy. The United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA), makes it easier and more affordable for manufacturers to operate across borders.

Through USMCA and other free trade agreements, manufacturers enjoy benefits such as:

• Duty-free movement of goods across borders
• Faster customs processing, thanks to simpler procedures
• Incentives for regional sourcing

To ensure they take full advantage of USMCA, many businesses choose to work with companies that help set up manufacturing in Mexico — partners who understand the compliance requirements, know how to structure operations efficiently, and can help align supply chains with trade policy from the start.

Logistics as Strategy: Just-in-Time & Real-Time Flexibility

For manufacturers operating in Mexico, logistics is a core part of their competitive strategy. By positioning production closer to demand centers, they reduce exposure to global disruptions, from port slowdowns to international conflict.

This shift also supports faster innovation. Shorter feedback loops between manufacturing teams and end markets enable more rapid iteration of product lines. Companies can launch, test, and refine faster, without long lead times or unpredictable shipping windows holding them back.

This shift enables smarter, more agile operations. Manufacturers can:

• Build dynamic production schedules tied to real-time demand
• Launch SKUs more frequently and respond to customer feedback sooner
• Localize components or final assembly for American markets
• Maintain continuity even when global shipping routes face disruption

This kind of responsiveness is what makes just-in-time supply chains work in today’s world. And it’s one of the key reasons Mexico is becoming an essential player in strategic manufacturing.

Where Do Administrative Service Providers Fit In?

When U.S. manufacturers search for companies to help set up manufacturing in Mexico, they’re looking for complete operational partners. That’s exactly what the NAPS Administrative and Compliance Management program offers.

NAPS works alongside manufacturers to ensure they’re equipped to operate efficiently and compliantly from day one. For companies looking to relocate manufacturing to Mexico, NAPS streamlines everything that impacts logistics flow, without red tape or regulatory surprises.

This program includes:

• Import/export and customs compliance, built into day-to-day operations
• Fully managed documentation and permitting, eliminating bottlenecks at the border
• Fast, compliant workforce onboarding to prevent production delays
• Ongoing reporting and regulatory oversight, aligned with Mexican and U.S. standards

For U.S. businesses seeking a reliable partner, NAPS provides end-to-end administrative support that keeps supply chains moving and operations on track.

The NAPS Advantage: Operational Clarity Without the Guesswork

NAPS helps U.S. manufacturers launch and operate in Mexico with confidence, handling site selection, workforce onboarding, and cross-border compliance so logistics flow without disruption.

By managing the details that slow companies down, we keep your supply chain moving and your operation focused on production. Mexico offers the proximity. NAPS ensures you capitalize on it — now and for the long term.