Investment in Logistics

"Our clients are looking for international supply-chain logistics capabilities from one provider," says Luis Perez, APL Logistics' vice president of Latin America, who is based in Miami, Fla. APL, a leading supply-chain management services provider, has invested substantially in the region over the last few years, with new operations in Honduras and Chile, a joint venture in Venezuela and an office in Guatemala – all announced in 2002.

"The region's proximity to the United States is a major draw to multinationals because you don't have the long transit times that you do coming from Asia." – Luis Perez, Latin America vice president, APL Logistics

        "The region's proximity to the United States is a major draw to multinationals," says Perez, "because you don't have the long transit times that you do coming from Asia." Latin America will soon see increased foreign direct investment from North American manufacturers as they find solutions to distribution and logistics issues closer to home, Perez intimates. Investment from Asia, too, is picking up.
        "Everybody goes to China for the labor, which is much more reasonable than even in Mexico, but the routine [in Latin America] is more to the liking of the companies that are coming back from China," says Paul Caine, managing director of NAI Latin America & the Caribbean, who is based in San Diego. "They have retained some facilities there and maybe a sales office, but manufacturing is coming back here."