As the United States and China cool their trade relationship, other countries and locations are vying for a greater role in the supply chain and as trading partners with the United States.
A report by Ares Real Estate, “Deglobalization and the rise of Mexico in today’s supply chain,” which was published in the December issues of Institutional Real Estate Americas and Institutional Real Estate Asia Pacific, discusses these shifting trading patterns and how they could affect demand for industrial space in the next five years.
“With rising geopolitical tensions between the United States and China, surging production costs in China, reduced reliability and higher costs to maritime shipping, Mexico is emerging as an extremely attractive location for higher-skilled manufacturing,” says the report. “Even prior to the trade war, Mexico was the second-largest trading partner of the United States, with U.S. trade accounting for 80 perce
