CH Robinson: Meeting Manufacturers' Logistics Demands

CH Robinson is enhancing its North American cross-border services, adding more than 450,000 square feet of warehousing space in El Paso, Texas.

This development increases its total footprint along the US–Mexico border to more than two million square feet. The expansion is designed to support the growing trade between the two nations and meet manufacturer demand for reliable cross-border logistics solutions.

The move is timely, as Chihuahua – the Mexican state opposite El Paso – has become the country’s leading state for exports. According to recent figures, Chihuahua’s export value reached US$47.551bn in the second quarter of 2024, marking a 35.7% increase from the same period in 2023.

Supporting a boom in high-tech manufacturing

This growth is part of a broader trend that has seen Mexico’s manufacturing exports rise by 13.5% year over year. High-tech products are a primary contributor to this, and Chihuahua is a central hub for computer and communication equipment manufacturing.

This level of advanced manufacturing requires a robust logistics framework to function effectively.

Jay Cornmesser, Vice President for Mexico Cross-Border Services at CH Robinson, says: "We continue to see El Paso emerge as a vital gateway for not just high-tech freight, but also automotive, medical devices and healthcare products."

Jay notes that the neighbouring city of Juárez has a significant maquiladora manufacturing base. A maquiladora is a factory in Mexico that imports materials and equipment on a duty-free basis for assembly or manufacturing and then re-exports the assembled products, a common model for foreign firms.

"Our expansion in El Paso is a direct response, meeting the evolving needs of our customers in today’s dynamic trade landscape," explains Jay.

The trend of nearshoring, which involves shifting production closer to end markets to shorten supply chains, has led companies from numerous sectors to establish operations in Mexico.

Many of these firms, particularly those new to the Mexican market, need comprehensive support to handle the country’s distinct logistics regulations, customs procedures and infrastructure. This applies to technology firms, food and beverage companies and automotive manufacturers alike.

Jay provides an example: "For example, we’re currently supporting a fast-growing SMB food and beverage company based in Europe as they expand into Mexico to better serve the North American market. As they made the jump to expand, they needed a partner who could handle everything—customs, warehousing, multimodal transportation, technology, and AI solutions.

"They needed an error-proof program that mitigated any potential for missteps that would cost time and money. That’s where CH Robinson excels. Our strategic growth at the border is designed to provide the agility and scalability that fast-moving industries require."

Building supply chain resilience in North America

"By leveraging our integrated logistics capabilities, companies can streamline their supply chains and stay compliant as they adapt to new shipping, storage, and trade regulations," adds Jay.

This El Paso development complements CH Robinson's existing presence in Laredo, the busiest port of entry between the US and Mexico. The combination of these locations creates a logistics network intended to remain responsive as trade patterns evolve and more manufacturers onshore production within North America.

Michael Castagnetto, President of North American Surface Transportation at CH Robinson, adds: "Our customers are navigating a landscape where agility is everything. With 35 years of proven expertise in Mexico, boots on the ground, AI-driven solutions and 2,000,000 square feet of strategically located facilities on the border, we set the standard for end-to-end service.

"We’re not just reacting to change – we’re anticipating it, ensuring our customers stay ahead in a rapidly evolving market."

The geopolitical environment surrounding US-Mexico trade is also a factor shaping the demand for border logistics. The United States–Mexico–Canada Agreement (USMCA) means that goods from Mexico are largely exempt from the reciprocal tariffs aimed at other trade partners.

This policy, combined with increased tariffs on Chinese imports by both the US and Mexico, could encourage further nearshoring and domestic production. With around 84% of US–Mexico trade remaining tariff-free under USMCA, the focus of cross-border relations often includes security and migration.

This dynamic pressures companies to seek secure and efficient supply chains. CH Robinson's expansion can be seen as a response, addressing these commercial and geopolitical pressures, providing infrastructure to support a more resilient North American manufacturing base.