Over the past few decades, the "just-in-time" has been one of the mantras of the manufacturing industry, shaping today’s global supply chains, which are essential for ensuring the fair and timely supply of all components needed to manufacture a product. 

First the trade war between the U.S. and China, and then the pandemic—and the chaos it caused in the supply chain—has once again brought the concept of “just-in-case”back in the spotlight—that is, ensuring the availability or stockpiling of components so as not to depend on distant suppliers who are susceptible to being caught up in geopolitical conflicts.

The new idea from "just-in-case" does not mean a return to the old practice of maintaining large inventories of components. Rather, it encompasses concepts such as nearshoring and the new friendshoring: developing supply sources that are nearby and located in geopolitically reliable regions.

For the U.S. market, Latin America can play that role. It is an opportunity that the members of CAFTA-DR (the free trade agreement between Central America and the Dominican Republic) are eager to seize, building on the strong integration they already have in certain industries, such as textiles and medical supplies.

According to Mauricio-Claver Carone, president of the Inter-American Development Bank, if Latin America manages to capture 15% of the imports from the 10 largest U.S. suppliers located outside the Western Hemisphere, it could increase its exports by US$70,000 million annually.