A GLIMPSE OF ONILOG’S 2021 EXPECTATIONS
In ONILOG we are optimistic about our expectations for 2021 and as stated in previous articles, we always choose to see the glass half full and work diligently to continue creating value. There were hard decisions which had to be taken at the beginning of the year to adjust our company to the actual level of operations and to prepare us to meet the projected growth due to the vast number of projects expected to land starting 2Q 2021.
We are sensing a generalized intention to recover the time lost in 2020 and move forward with all the projects postponed due to the COVID uncertainty, the elections in USA, the renegotiation of NAFTA, now the USMCA, and the USA-China trade war.
In 2020 we all experienced the worst health crisis in the last 100 years, which lead to a world-wide economic crisis. This new reality has generated an Economic Nationalism sentiment, as well as a trend to Nearshore operations in order to avoid risks in the supply chain.
Mexico’s industrial sector has an opportunity to rebound from the 2020 chaos by leveraging its position as the most attractive country in North America for manufacturers to invest to supply the biggest market in the world; we are seeing the arrival of production and logistics operations from all over the world. To be successful, Mexico must maintain a competitive edge as well as convince the USA and Canada that investing in the USMCA region should be considered as Nearshoring, since it will enhance the world-wide competitivity of the products made in North America.
The industrial sectors that would benefit the most by relocating their operations to North America as to comply with the stricter Rules of Origin, National Security requirements, the tendency to Nearshore and the “New Normality” are:
- Machinery and equipment
- Medical equipment
- Digital Economy
- Logistics and Transportation
In order to provide solutions to our current and potential customers in these industries, ONILOG must keep investing in IT capability, enhancing our Quality Culture and creating innovative solutions; in other words, we must maintain our focus in creating value.