Latin America supply chains mature
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The 2013 A.T. Kearney Foreign Direct Investment Confidence Index, a regular measure of senior executive sentiment at the world’s largest companies, indicates that Latin America remains attractive to U.S. shippers and manufacturers. Furthermore, key emerging economies in the Americas are making a strong showing in the investment landscape this year, with Chile, Argentina, and Mexico joining Brazil in the top 25.
“Rather than a temporary safe haven during economic upheaval, emerging markets—particularly in Latin America—are developing into a complement, instead of an alternative, to the developed world,” notes Erik Peterson, managing director of A.T. Kearney’s Global Business Policy Council.
Brazil maintained its third place position in the FDICI this year. In 2011, its FDI hit $66.7 billion, its highest level ever and a 37 percent increase since 2010. More inflows are likely on the way, with the 2014 World Cup and 2016 Olympics needing transportation and infrastructure investments of $200 billion. Manufacturing remains the recipient of nearly half of Brazil’s FDI, with European, Scandinavian and Chinese investors all adding billions to its economy.
But before entering this vibrant marketplace, trade experts advise supply chain managers to conduct a careful examination of the region’s transportation and regulatory infrastructure.
“Given sociopolitical and economic forces that seem only to be racking up new surprises each year,” Peterson says, “investors in developed economies and emerging countries alike will need to find nimble strategies to deal with this shifting landscape.”
About the AuthorPatrick Burnson Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
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