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Other - JULY 24, 2024

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Near-shoring drives attractiveness of logistics assets on U.S. southern border

by Loretta Clodfelter

A number of trends are driving the demand for logistics facilities along the U.S.-Mexico border, including the increase in near-shoring activity.

“In order to address disruptions to their supply chains, retailers and manufacturers have sought to source an increasing share of their merchandise and intermediate goods from Mexico,” said Nathan Kane, head of research at Realterm, in an interview with IREI. He explained that increasing the number of locations from which to source merchandise and intermediate goods reduces the potential for a single production outage to completely disrupt a supply chain. Such a strategy is often called China Plus One.

“Shortening supply chains also reduces the potential for transportation disruptions along the path of goods from producer to consumer,” added Kane.

He pointed out China was the U.S.’s top trading partner for more than 15 years after joining the World Trade Organization — growth that came at the expense of Mex

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