Latin America supply chains mature

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.

By ·

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 Author

Patrick Burnson, Executive Editor
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]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Global Logistics · All Topics
Latest Whitepaper
The Internet of Things and the Modern Supply Chain
Learn today how the internet of things is transforming supply chain operations.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...