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US Logistics Industry profits from Mexican Automotive Boom

Logistics is a decisive factor for future growth
US Logistics Industry profits from Mexican Automotive Boom

The United States experienced an increase of 5.4% of manufactured vehicles and secured the second rank behind China, according to the International Organization of Motor Vehicle Manufacturers (OICA). The development of the automotive industry also has a positive impact on the logistics sector. “In the US, we are seeing a significant growth in our operations because of Mexico’s automotive boom, which positively affects us.” says Frank Guenzerodt, President & CEO of DACHSER USA. “Nearshoring in Mexico has become more attractive for U.S.-based companies in the past years instead of outsourcing operations to China.” Mexico was the biggest supplier of car parts to the U.S., accounting for 34% of the imports in 2014. “Our cross-border LTL service optimizes the connection between tier suppliers on the Mexican side, and manufacturing locations in the Midwest and Southeast regions of the US.” says Guenzerodt.

DACHSER’s company revenue in the US continues to grow, increasing by 16 percent to $192 million in 2014, also largely in part to the automotive industry. “This industry is experiencing strong and sustained growth and the demand of integrated supply chain solutions is rising steadily,” states Guenzerodt. The logistics services provider with global headquarters in Germany places a firm focus on the automotive sector.

DACHSER USA currently operates 14 offices strategically placed around the country and three additional offices in Mexico round out the North American network for the company. Its North American Air & Sea Logistics network combined with the strong European overland transport and warehousing network, allowing the company to offer integrated supply chain solutions on a global scale.

Mexico’s automotive industry is booming. In 2014, Mexican factories produced 3.2 million cars (+9.8%), according to AMIA, the Mexican Automotive Industry Association. Mexico surpassed Brazil and is now the seventh-largest auto-producing country at a global level. A total production of 3.5 million vehicles is projected for 2015. Analysts are also predicting that production will reach five million cars by 2020, moving the country to fifth rank globally. “We have recognized a vast increase of shipments for the automotive industry,” says Christian Speit, Managing Director DACHSER Mexico. “In 2014 we moved 36% more TEUs compared to the year before.”

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