In an era where global supply chains have been redefined, OMI is taking proactive steps to ensure that our clients receive their products on time and at a lower cost. The challenges brought on by the pandemic and recent geopolitical upheavals have highlighted the vulnerabilities of relying on distant manufacturing hubs like China. The global disruptions have forced businesses worldwide to rethink their strategies, and OMI is no exception.

For years, geographic distance seemed inconsequential. A factory in Asia was just as accessible as one in North America, thanks to the internet, efficient shipping, and international trade agreements. However, the COVID-19 pandemic and rising geopolitical tensions have exposed the risks of this globalized mindset. The reliance on far-flung industries to produce essential goods—from computer chips to medical supplies—has proven precarious.

At OMI, we are committed to building a more resilient supply chain. By expanding our manufacturing operations to Mexico, we are taking a significant leap toward greater security and efficiency. Mexico offers not only low labor costs but also strategic proximity to the United States, allowing us to better serve our North American clients. This move ensures that we can maintain production stability, reduce lead times, and ultimately deliver products more reliably.

A Booming Automotive Industry in Mexico

The decision to expand in Mexico is also supported by the country’s burgeoning automotive sector. The Industria Nacional de Autopartes (INA) projects that automotive parts production in 2024 will amount to approximately $125.5 billion, marking a 3.1% growth compared to 2023. The data emphasizes the importance of Mexico in the global supply chain, with 87% of automotive parts production destined for export, primarily to the United States. This reinforces Mexico’s position as a key player in the industry and a critical hub for OMI’s manufacturing expansion.

Trade Partner Insights

China’s role in Mexico’s autoparts sector is relatively modest, accounting for only 4% of foreign direct investment from 2006 to November 2023. On the other hand, the United States remains Mexico’s primary trade partner, a relationship bolstered by agreements like the USMCA, which facilitate regional trade and nearshoring opportunities. This strategic alignment makes Mexico an even more attractive location for companies like OMI, looking to capitalize on these trade benefits and invest in the future of electromobility.

Strengthening Our Commitment to Clients

“Expanding into Mexico is more than just a strategic move—it’s a testament to our deepening commitment to our clients,” says Tim Appleton, OMI CFO. “By broadening our manufacturing capabilities, we’re reinforcing OMI’s role as a trusted partner in your success. Our mission is to ensure your products arrive faster, more securely, and at a lower cost, regardless of the challenges the global landscape may present.”

As we continue to innovate and expand, OMI is dedicated to providing our clients with the confidence that comes from knowing their supply chain is secure, their products are delivered on time, and their costs are kept in check. By investing in Mexico, we are not just expanding our manufacturing capabilities; we are reinforcing our commitment to excellence and reliability in everything we do.

MEXICO FACTORY