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Buyers continue to increase near-shoring as risk management strategy

By David Hannon -- Purchasing, 4/30/2009 2:00:00 AM

A quarterly report on supply chain risk from AMR Research found that buyers will increase their nearshoring sourcing and manufacturing activities by a ratio of 5 to 1. "Mexico is the preferred nearshoring destination, with 84% of the respondents choosing it as a place for sourcing or manufacturing, followed by Canada at 55% and Brazil at 49%," the AMR report said, adding that Eastern Europe was also seeing more interest as a sourcing location.

"These two findings are attributed to the increased cost competitiveness of nearshore locations, as well as company desires to build a more balanced geographic portfolio to avoid some of the risks associated with low-cost country sourcing," AMR researchers said.

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