Widening Technology Gap A Threat To US-Mexico Trade

Widening Technology Gap A Threat To US-Mexico Trade

The recent surge in U.S.-Mexico trade, fueled by nearshoring, presents a potential hurdle: a widening technology gap between carriers and logistics providers on either side of the border.

  • The Opportunity: Trade between the U.S. and Mexico reached a record $798 billion in 2023 and is expected to continue rising, offering significant opportunities for businesses in both countries.

  • The Challenge: Experts at logistics technology company Panacea Strategy warn of a widening technology gap. Many Mexican companies are reportedly not keeping pace with advancements in areas like artificial intelligence (AI), automation, and data integration. This could lead to both sides missing out on efficiency gains and cost savings, with Mexican companies potentially becoming less competitive and cross-border logistics suffering from inefficiencies.

To address this challenge, experts recommend that Mexican companies invest in technology solutions like AI-powered customs tools, Internet of Things (IoT) sensors for tracking, and data integration platforms for improved collaboration.

Embracing these advancements could lead to increased efficiency, improved visibility, and enhanced competitiveness for Mexican companies in the global marketplace.