Analyzing the Sourcing Impact of the Mexican Peso Crash

Metal Miner, a Spend Matters affiliate blog, recently hosted a podcast with Mexico's German Dominguez, a MetalMiner associate, on the impact of the Mexican Peso Crash on the metals markets. Many of the suggestions will hold true for other industries as well. According to the blog post leading up to the podcast, "Mexico should [now] appear more competitive to US buyers for products such as forgings, castings and machined parts, unless of course the raw material factor in the product does not contain much labor, as a percentage of the overall product value." What's my take? The Peso devaluation will further accelerate the speed with which companies consider moving export-based China spend back to the Western hemisphere. Clearly, many will stay in China. But I reckon that an increasing number will once again consider Mexico a viable, lower-cost alternative.

- Jason Busch

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