As geopolitical tensions rise and economies become more complex, North American industries are turning away from Asia to secure a better future. Mexico and Central America offer significant benefits for firms looking to keep costs low and mitigate risks stemming from the US-China trade war.

In decades past, supply chains were smooth, inflation levels were low and long-term supply contracts with annual price-adjustment clauses posed few risks. Cut to today’s inflation and supply chain crisis, and it’s clear that ‘vintage’ contracts with built-in cost inflators need to be brought up to date.

The true cause of the disruptions is that most human of errors – believing the past will simply repeat itself. Because today’s supply chains are global, efficient and more perilously constituted than before, new risk mitigation systems are needed.