Despite uncertainties about the treaty's future, Mexico's place in the global supply chain is secure, says the head of the country's Trade and NAFTA Office.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Kenneth Smith Ramos, head of Mexico's Trade and NAFTA office, has his work cut out for him in light of U.S. plans to renegotiate the treaty.
Editor's Note: In light of the Trump administration's formal notification yesterday to Congress that it intends to re-negotiate the North American Free Trade Agreement (NAFTA), DC Velocity is posting an interview conducted last month with Kenneth Smith Ramos, head of Mexico's Trade and NAFTA office. Based in Washington, Smith is in charge of promoting the trade relationship between Mexico and the United States and for ensuring proper implementation of NAFTA.
The interview was conducted by Toby Gooley, editor of CSCMP's Supply Chain Quarterly, DC Velocity's sister publication. The full version of the interview appears on CSCMP Supply Chain Quarterly's website.)
Q: There is a lot of talk about manufacturing returning from Asia to North America. Are you seeing evidence of that in Mexico?
A: Yes, we are. Since China entered the World Trade Organization [in 2001] China has been strongly competing with Mexico for U.S. business and also for business within Mexico. In fact, some Mexican manufacturing moved to Asia. So we tried to incentivize advanced, higher value-added manufacturing to locate in Mexico through a network of free trade agreements and, for the domestic sector, a program of duty-free inputs for industries such as electronics, steel, and automotive.
This was quite successful. Let's take the example of televisions. We made modifications to the NAFTA rules of origin to allow certain components from abroad to be included, and the finished product could still qualify as a NAFTA product. This created an incentive for new-generation TVs to be made in Mexico for U.S. consumption.
Mexico receives more than US$30 billion of foreign direct investment annually. In the last few years, less than half of it has come from the U.S. The number one sector for foreign direct investment is the automotive industry—and not just from the big U.S. automakers. Companies like BMW, Hyundai, Audi, and Volkswagen are expanding manufacturing and assembly capacity in Mexico.
Q: Manufacturing is becoming highly automated. Is Mexico prepared for this change?
A: As I mentioned, we are promoting Mexico as a location for advanced, higher value-added manufacturing. That means our workforce needs more technical skills. For that reason, the Ministry of Economy and state governments are working with the private sector and foreign investors to provide more technical training and education. A good example is the aerospace industry, which has a strong presence in Mexico. In Querétaro we established an "aeronautics university," a special graduate school for engineers who want to work in that sector. The university works with the private sector to identify the engineering skills they will need for the future. We have something similar for the medical equipment industry in Chihuahua, and we hope to replicate it in other industrial segments.
Our workforce is a key "selling point" for bringing more manufacturing back to North America. Mexico has the right demographics—our average age is 26—and we already have a very robust base of skilled labor increasingly shifting from traditional maquiladora assembly plants to more technologically advanced industries.
Q: What industries does Mexico excel in, and where will its future strengths lie?
A: In addition to agriculture, our current strengths are in aerospace, medical equipment, biotech and health sciences, electronics, and automotive. In addition to manufacturing plants, we're seeing more companies investing in product-design centers in Mexico, including companies like Intel and Honeywell.
I think those industries will continue to be successful and grow. Mexico is also pushing forward with structural, constitutional reforms that have opened the way for private investment in oil, gas, electric power generation, and renewable energy. The energy potential in North America is huge, and it could greatly boost the NAFTA region's competitiveness.
Q: How does Mexico see its position within the global supply chain?
A: I think that through NAFTA, Mexico has demonstrated that we can be a hub for production and a platform for cross-border supply chain integration. So we have great potential to expand that capability and to be a key player in global supply chains. In addition, Mexico is the world's 15th largest economy, the 10th largest exporter, and the 9th largest importer, and we have free trade agreements with 46 nations. These agreements make Mexico an attractive center for investment and production for the rest of the world.
Q: What is the Mexican government's position on NAFTA modernization and renegotiation?
A: The Mexican government's position is that NAFTA would benefit from modernization that is based on a fact-based assessment that reflects reality and avoids political rhetoric. The outcome of any renegotiation must be a win for all three countries involved, and it must maintain the integrity of the integrated supply chains that NAFTA created.
We are at a very important crossroads in regard to NAFTA. We can go down the road of building on what we've achieved in the past 23 years and strengthen our cooperation on regulations and infrastructure. Or we can fall prey to the pressures of protectionism, which would raise the cost of doing business within our region and severely hamper our economic growth.
Q: Work has begun on developing a North American version of the "Single Window," where shipment data would be shared by the three NAFTA governments' relevant agencies. Are cooperative initiatives like this at risk if the treaty is renegotiated?
A: Mexico is very committed to a "21st century border" and to partnerships that support prosperity for all three NAFTA countries. Mexican Customs has a very strong partnership with its U.S. and Canadian counterparts. For example, Mexico changed its laws to allow U.S. Customs and Border Protection (CBP) officers to conduct cargo pre-inspections in Mexican territory. We want these types of pilot programs to become permanent and expand beyond the border.
So far [customs cooperation] has not been brought up directly in conversations about NAFTA modernization. I think the three countries should work to ensure that trade enforcement and facilitation are strengthened. Cooperation among the customs agencies will be essential as we go forward with NAFTA modernization.
Electric vehicle (EV) sales have seen slow and steady growth, as the vehicles continue to gain converts among consumers and delivery fleet operators alike. But a consistent frustration for drivers has been pulling up to a charging station only to find that the charger has been intentionally broken or disabled.
To address that threat, the EV charging solution provider ChargePoint has launched two products to combat charger vandalism.
The first is a cut-resistant charging cable that's designed to deter theft. The cable, which incorporates what the manufacturer calls "novel cut-resistant materials," is substantially more difficult for would-be vandals to cut but is still flexible enough for drivers to maneuver comfortably, the California firm said. ChargePoint intends to make its cut-resistant cables available for all of its commercial and fleet charging stations, and, starting in the middle of the year, will license the cable design to other charging station manufacturers as part of an industrywide effort to combat cable theft and vandalism.
The second product, ChargePoint Protect, is an alarm system that detects charging cable tampering in real time and literally sounds the alarm using the charger's existing speakers, screens, and lighting system. It also sends SMS or email messages to ChargePoint customers notifying them that the system's alarm has been triggered.
ChargePoint says it expects these two new solutions, when combined, will benefit charging station owners by reducing station repair costs associated with vandalism and EV drivers by ensuring they can trust charging stations to work when and where they need them.
New Jersey is home to the most congested freight bottleneck in the country for the seventh straight year, according to research from the American Transportation Research Institute (ATRI), released today.
ATRI’s annual list of the Top 100 Truck Bottlenecks aims to highlight the nation’s most congested highways and help local, state, and federal governments target funding to areas most in need of relief. The data show ways to reduce chokepoints, lower emissions, and drive economic growth, according to the researchers.
The 2025 Top Truck Bottleneck List measures the level of truck-involved congestion at more than 325 locations on the national highway system. The analysis is based on an extensive database of freight truck GPS data and uses several customized software applications and analysis methods, along with terabytes of data from trucking operations, to produce a congestion impact ranking for each location. The bottleneck locations detailed in the latest ATRI list represent the top 100 congested locations, although ATRI continuously monitors more than 325 freight-critical locations, the group said.
For the seventh straight year, the intersection of I-95 and State Route 4 near the George Washington Bridge in Fort Lee, New Jersey, is the top freight bottleneck in the country. The remaining top 10 bottlenecks include: Chicago, I-294 at I-290/I-88; Houston, I-45 at I-69/US 59; Atlanta, I-285 at I-85 (North); Nashville: I-24/I-40 at I-440 (East); Atlanta: I-75 at I-285 (North); Los Angeles, SR 60 at SR 57; Cincinnati, I-71 at I-75; Houston, I-10 at I-45; and Atlanta, I-20 at I-285 (West).
ATRI’s analysis, which utilized data from 2024, found that traffic conditions continue to deteriorate from recent years, partly due to work zones resulting from increased infrastructure investment. Average rush hour truck speeds were 34.2 miles per hour (MPH), down 3% from the previous year. Among the top 10 locations, average rush hour truck speeds were 29.7 MPH.
In addition to squandering time and money, these delays also waste fuel—with trucks burning an estimated 6.4 billion gallons of diesel fuel and producing more than 65 million metric tons of additional carbon emissions while stuck in traffic jams, according to ATRI.
On a positive note, ATRI said its analysis helps quantify the value of infrastructure investment, pointing to improvements at Chicago’s Jane Byrne Interchange as an example. Once the number one truck bottleneck in the country for three years in a row, the recently constructed interchange saw rush hour truck speeds improve by nearly 25% after construction was completed, according to the report.
“Delays inflicted on truckers by congestion are the equivalent of 436,000 drivers sitting idle for an entire year,” ATRI President and COO Rebecca Brewster said in a statement announcing the findings. “These metrics are getting worse, but the good news is that states do not need to accept the status quo. Illinois was once home to the top bottleneck in the country, but following a sustained effort to expand capacity, the Jane Byrne Interchange in Chicago no longer ranks in the top 10. This data gives policymakers a road map to reduce chokepoints, lower emissions, and drive economic growth.”
"Shrink" is the retail industry term for the loss of inventory before it can be sold, whether through theft, damage, fraud, or simple book-keeping errors. In the ongoing effort to reduce those losses, Switzerland-based retail tech company Sensormatic Solutions has expanded the scope of its Shrink Analyzer application to shine a light into previously unmonitored parts of brick-and-mortar stores where goods tend to go missing.
The newly enhanced, cloud-based application can now integrate radio-frequency identification (RFID) and electronic product code (EPC) data from overlooked parts of the building, like employee entrances, receiving doors, "buy online, pick up in store" (BOPIS) doors, or other high-risk areas selected by a store. It then integrates that data into Sensormatic's analytics engine to provide insights into when, where, and how shrink occurs to help users strengthen their loss-prevention strategies, the company says.
Those expanded capabilities allow the platform to provide enhanced "shrink insight" at locations beyond the store's main exit, Sensormatic says. For example, strategically placed RFID scanners at employee exits can reduce internal theft while providing item-level evidence for theft investigation efforts. Likewise, monitoring online-order pickup doors can help retailers both improve in-store e-commerce fulfillment accuracy and identify employee theft events, according to Sensormatic.
A few days before Christmas as I was busy preparing for the holiday, I received a text message from my bank asking if I had attempted to purchase a $244 Amtrak ticket in Orange County, California. Considering that I had the card in my possession and that I lived thousands of miles away from the attempted purchase location, I promptly replied "No." Almost immediately, a second message informed me that my card was locked and to contact my bank.
I'd like to say this was an isolated incident, but in 2024, I had to replace the same card four times. Luckily, it just took a quick trip to my local bank to replace the compromised card, but it was still an unwanted hassle.
Fraud is a never-ending issue facing not just consumers but businesses as well—no one is immune, it seems. In its latest industry report, "Occupational Fraud 2024: A Report to the Nations," the Association of Certified Fraud Examiners (ACFE) estimated that businesses lose 5% of their revenues to fraud each year. This report focused specifically on three basic types of occupational fraud: asset misappropriation, corruption, and financial misstatement. But what about other types of fraud?
The media often report on big organized theft rings stealing goods from trailers, trains, or containerships, or on bands of thieves breaking into warehouses or retail stores—but there are so many other ways in which fraudsters wreak havoc.
For instance, another area where fraud is rampant is consumer returns in the retail industry. Software company Appriss Retail, in collaboration with business management consultancy Deloitte, recently published its "2024 Consumer Returns in the Retail Industry" report. It states that "total returns for the retail industry amounted to $685 billion in merchandise in 2024." That might seem like a drop in the bucket compared to the $5 trillion in sales U.S. retailers racked up last year, but as the report's authors note in the executive summary, "the amount of fraud and abuse remains a significant issue that should be addressed. Fraudsters and abusers are often becoming adept at circumventing retailers' controls across all channels."
So what can businesses do? According to the ACFE study, internal controls (i.e., surprise audits, management reviews, hotlines or other reporting mechanisms, fraud training, and formal fraud risk assessments) are the best defense against occupational fraud.
When it comes to consumer returns fraud, Appriss Retail's report concludes that while retailers continue to adapt and refine their fraud prevention strategies, it's a delicate balancing act. The trick is for "retailers to implement solutions that have [a] minimal impact on the consumer experience," the report noted. "Brand loyalty can be fragile and competition continues to grow, so holding onto consumers is often a key to long-term success."
Then there's security and asset protection. Last October, I attended a session at the Council of Supply Chain Management Professionals' EDGE 2024 conference that focused on security and safety. In that session, Lee Ambrose, vice president of business development for Remote Security Solutions (RSS), discussed advanced strategies and technologies for violence prevention. But he also touched on asset/transit protection and specific solutions that can help companies discourage theft.
As an example, Ambrose cited his company's transit surveillance unit (TSU)—a portable monitoring device that can be installed on trailers to protect in-transit freight. According to the company's website, the TSU uses AI (artificial intelligence) detection, security cameras, and two-way communication to deter criminal activity, providing real-time detection and notification when unauthorized persons attempt to enter the trailer. It claims the device has a deterrence rate of 98%.
In the end, sometimes there is only so much a company can do to mitigate fraud/theft. But we are fortunate to have resources we can turn to if we need help. It's an uphill battle, but one that we will keep on fighting.
Most retail, wholesale, and manufacturing businesses are focused on fundamentally restructuring their supply chains to stay ahead of economic uncertainty. That’s according to results of the second annual State of Supply Chain report from supply chain solutions platform provider Relex Solutions, released Tuesday.
Relex surveyed nearly 600 professionals from retail, consumer packaged goods (CPG), and wholesale businesses across seven countries and found that 60% said they are overhauling their supply chains due to tariff uncertainty and market volatility.
Respondents said they are grappling with unpredictable consumer demand, escalating trade tensions, and unreliable supplier networks. More than half (52%) said demand volatility is their biggest challenge, forcing them to rethink inventory strategies in real time as shifting spending habits disrupt supply chains. In addition, 47% of businesses pointed to global trade disruptions and rising tariffs as a growing threat—with tariff volatility fueling concerns over higher costs and sourcing bottlenecks—and43% said they struggle with a lack of real-time data and visibility, making it harder to adapt to sudden shifts in demand, labor shortages, and transportation delays.
To counter those challenges, companies said they are making “bold operational shifts,” according to the study. Many are expanding their supplier networks, moving sourcing closer to home, and accelerating automation investments. Among retailers, 62% said they are addressing cost pressures through a combination of efficiency improvements and price adjustments, while 50% said they are actively broadening supplier bases to safeguard against economic and geopolitical instability.
“Supply chains are in a pressure cooker—between tariffs, demand shifts, and unpredictable disruptions, the outdated and traditional way of operating isn’t sustainable,” Dr. Madhav Durbha, Relex Solutions’ group vice president of CPG & Manufacturing, said in a statement announcing the findings. “Companies that lean into AI, automation, and supplier diversification will not only weather this volatility but emerge stronger. The ones that don’t risk falling behind.”
The full report, Relex State of Supply Chain 2025: Retail and CPG Dynamics, is slated for release in March. The report was conducted by market research firm Researchscape in January 2025.