There hasn’t been much to cheer about in Truckville lately. Twenty-seven consecutive months of declining freight rates can be a little deflating. For too long, there have been too many trucks chasing too little freight.

That’s starting to change as capacity exits the market. But nothing would move pricing like a surge in shipper demand. Which is why you should get acquainted with the concept of nearshoring.

Nearshoring is about locating manufacturing closer to the end customer. The idea picked up steam during Covid as a way to reduce the risk of global supply chain disruptions.

While China is the unquestioned hub of global trade, the “re-industrialization” of North America is gaining momentum in Mexico.

Like Canada, Mexico shares a border with the U.S. and is directly accessible by sea from Europe and Asia (no Suez or Panama Canal). It benefits from the tariff exemptions granted by the United States-Mexico-Canada Agreement.

Unlike Canada, it’s cheaper to make things there. That’s not news to anyone who watched automotive and heavy truck manufacturing shift from Canada to Mexico in the late 1990s and 2000s.

Just because a multinational company isn’t moving its factory from Shanghai into our backyard doesn’t mean your fleet can’t benefit from nearshoring.

One key to nearshoring success involves integrating local suppliers. In this case, “local” means North America — and potentially lots of new freight opportunities.

Here are some things to consider as you ponder how nearshoring may affect your fleet.

Time is on your side

Everything I read makes me believe that factories have already moved across the pond. Problem solved!

The fact is, nearshoring isn’t happening nearly as fast as it may appear. Legacy systems take years to unravel. Manufacturers aren’t going to uproot supply chains built over decades in 18 short months.

No need to rush. There’s time to figure out how to capitalize on this opportunity,

Direct service to Tijuana

When I owned MSM, our Los Angeles office looked at what it would take to set up a trucking operation in Mexico. We decided the country’s notorious lawlessness was not worth the risk, and I don’t think much has changed. If you want a second opinion, call your insurance broker.

Brokers are a different story. Our Rite Route logistics team has seen an uptick in inquiries from Canadian companies trying to integrate into Mexico’s evolving supply chain. To meet growing demand, our first step was to find a reliable Mexican trucker to add to our suite of services.

With the right partner, there is no reason why any freight brokerage — or carrier with a brokerage — can’t quickly add Mexico to their suite of service offerings.

Part of the solution

The best place to look for “re-industrialization” opportunities is on your customer list.

Every business is reassessing shipping patterns and looking to take cost and risk out of its supply chain. Maybe an overseas customer or partner is considering nearshoring. Maybe they need help making their Canadian operations more efficient and competitive.

Your customers don’t know trucking. Don’t underestimate the value of your expertise during their turmoil.

Look’em in the eye

Nearshoring isn’t the only thing to come out of Covid. So did the “Zoomies” and the notion that people no longer want to meet, have lunch or go for walks. Remember when we’d drive to a customer to talk biz face to face?

Understandably, sales budgets have been slashed. Fleets don’t have the same sales bandwidth they once had.

It makes a good old-fashioned sales call all the more powerful.

If you do nothing else right now, rekindle your face-to-face meetings. Get off Zoom and get out the Amex cards. Tell your C-Suite it’s time to see customers in the real world and help solve their problems.

Change may come slowly, but every industry is reviewing where they make their stuff. Any shift in production means new suppliers to feed their assembly lines and new opportunities for Canadian truckers and logistics pros who know the business.

As prospects and customers evaluate how a pivot to nearshoring might affect them, you need to be part of the conversation to make sure you are part of the solution.