Apart from tariffs, many American manufacturers suffered during Covid as factories shut down indefinitely causing the entire business to stall. Many companies realized the significance of near-shoring and generally having ready alternatives to combat supply chain disruptions.
Also, labor costs in China have been rising and the cost benefits have been gradually shrinking. According to the Labour Cost Index of China, the costs increased by almost 38% between 2010 and 2021, and continue to increase.
Many large companies like Apple, Intel, Microsoft, Nike, Dell, Samsung and others have planned to either completely move out or at least shift a significant part of their production to friendlier shores.
Automation Readiness Index Rank 
Government Initiatives 
Ports Infrastructure 
Technology Adoption 
Automation Readiness Index Rank
Government Initiatives Medium
Low
Ports Infrastructure Medium
Low
Technology Adoption Medium
Low
Automation Readiness Index Rank
Government Initiatives High
Low
Ports Infrastructure High
Low
Technology Adoption High
Low
Automation Readiness Index Rank
Government Initiatives Medium
Low
Ports Infrastructure Medium
Low
Technology Adoption Medium
Low
India stands out with its vast resources, growing domestic market, and ambitious government policies aimed at boosting the manufacturing sector's contribution to GDP. It stands out for its low cost, capacity, rich engineering talent, and English-literate professionals. Unimacts’ parent Zetwerk is based in India with over a thousand employees in the country.
Vietnam, with its skilled labor force, competitive costs, and strategic location in Southeast Asia, has emerged as a viable alternative. It matches the work ethic and professionalism of its Chinese counterparts. The government has also employed policies that has made this an attractive destination.
Mexico offers proximity to the US, minimizing supply chain risks associated with long lead times from China. The proximity also allows for easier control and monitoring by companies.
