Redwood Logistics is expanding their operations into new offices in Monterrey, Mexico. Redwood Mexico already operates south of the border, with boots on the ground for over five years, but the expansion of Monterrey operations reflects the investment businesses are making in nearshoring efforts as they look to reduce manufacturing and cash-to-cash cycles.
“Mexico has evolved from an exporter of basic goods to a manufacturing hub for the most complex and technologically advanced consumer goods, and we are seeing major investments from the world’s largest retailers and manufacturers from industries including automotive, appliances, aerospace, pharmaceutical, HVAC, and food and beverage,” said Redwood Mexico President Jordan Dewart. “As shippers of all kinds make the move south of the border, it’s vital that we grow to match their efforts. With our expansion in Monterrey, we’re now able to service more cross-border freight beyond the over 25,000 shipments we already oversee on a yearly basis.”
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According to CANACAR, which represents the interests of the transportation industry in Mexico, it is estimated that exports derived from nearshoring into Mexico could reach $35 billion USD. In current standing, Mexico’s industrial park occupancy hit a record high last year, growing 30% compared to 2021 and an average occupancy rate of more than 97%. As for the physical transportation of goods, nearshoring could provide motor transport growth of 20% in the next two to three years.
“The port disruption and manufacturing delays that shippers experienced due to the pandemic was a wakeup call of epic proportions,” added Dewart. “Nearshoring is not a new idea, but what is new is the scale of investment that companies are making. The savings you get from manufacturing in Asia are offset if your containers sit on ships for hundreds of days, you rack up huge demurrage fees, and chassis are unavailable at the destination port. With Mexico, you simply put what you need on a truck and can have it at a final-mile distribution warehouse within days, rather than months. Our Monterrey operation will interact seamlessly with our well-established footprint in El Paso and Laredo, Texas,, to provide total visibility of all shipments on both sides of the border.”
Redwood Mexico currently offers cross-border capacity solutions, warehousing and distribution, U.S. customs and clearance, Mexico customs and clearance, and physical Redwood assets that assist in the movement of freight. By combining current operations with the growth of operations in Monterrey, Redwood is expanding to match the growing need for nearshoring transportation options, the company stated in its press release. With years of experience operating in Mexico, the company expects the transition to be smooth and quick, allowing for Redwood to service more shippers and support over 150 employees across all business units in the region out of the expanded and centrally located Monterrey offices.
