Demand for Efficient Cross-Border Movement is Only Growing: JAMCO

Q: What differentiates JAMCO in the highly competitive logistics market?

A: For nearly 30 years, JAMCO has specialized in cross-border logistics, handling raw materials entering Mexico from the United States and finished goods moving from Mexico to the United States and global markets. We are uniquely positioned because we operate as both a US customs broker, holding seven to eight US licenses with a complete trade compliance suite, and as a Mexican customs broker with our own patents and staff. We do not subcontract Mexican services; our personnel and technology in locations like Nuevo Laredo and Monterrey are entirely JAMCO’s.

We also control the drayage/transfer operations in Laredo, managing transportation alongside customs on both sides. This integrated control of customs clearance and border transport sets us apart in the market. We operate nearly 2 million ft² of border facilities, primarily in Laredo, with ongoing expansion in San Diego, El Paso, and McAllen to achieve full strategic coverage of the US–Mexico border.

Q: How does JAMCO’s integration into Imperative Logistics redefine the group’s competitive positioning within the high-value, mission-critical logistics segment? 

A: The integration with Imperative reflects a broader market shift driven by tariffs, COVID-19 disruptions, and changing US trade policy, which have accelerated nearshoring from Asia to Mexico. Many Asian manufacturers are now establishing operations in Mexico to be closer to the United States, the world’s largest consumer market.

Imperative’s strategy is to remain global while prioritizing North America, where 90% of demand is concentrated along the US–Mexico border. To serve this market effectively, controlling the border process is essential; without it, a company is not a true end-to-end provider. Imperative brought expertise in expedited, global, and air freight but lacked direct control over customs and border operations. By integrating with JAMCO, it now has full border management capabilities, enabling complete visibility and control for customers.

We are expanding our geographic footprint along the entire US–Mexico border, both organically and through M&A, while also strengthening our presence at key Mexican maritime and air ports, and in manufacturing hubs such as Queretaro and Toluca.

Q: What technologies have had the most transformative impact on your cross-border operations over the past two years? 

A: Technology is at the core of JAMCO’s operations. Over the past two years, we have shifted from traditional EDI to open-format APIs, enabling seamless, real-time integration with clients’ operating systems. This eliminates the need for customers to log into separate portals, allowing them to view shipment status directly in platforms they already use, such as SAP or JD Edwards. For clients not yet ready for full integration, we still provide portals, but our priority is direct system-to-system connectivity. This ensures customers can track both raw materials critical for production planning and finished goods for end customers.

The market demands visibility in minutes or hours, not days. Our systems provide full transparency across the border process, allowing us to detect and address exceptions quickly. While border operations inevitably face daily challenges, our technology enables proactive intervention before small issues escalate into major delays.

Q: How does JAMCO turn challenges at the US–Mexico border into a competitive advantage?

A: Our value lies in delivering solutions, not just services like customs clearance or filing entries. By maintaining strong control and visibility over information, we can analyze changing conditions and recommend the most efficient options for our clients’ operations. Policy shifts, such as mandatory English for drivers or more intrusive inspections, along with constant tariff changes, require daily monitoring. Our trade compliance team conducts detailed evaluations and classifications to help clients understand the impact of sourcing from Asia, China, or Vietnam, and to develop strategies that minimize tariff costs.

While eliminating tariffs is often impossible, we focus on reducing their financial impact, sometimes by millions of dollars, through strategic planning, compliance optimization, and tailored supply chain solutions.

Q: Which industries are driving the most demand for JAMCO’s services, and what shifts have you observed in their needs over the past year?

A: We serve a broad range of industries, including automotive, appliances, and medical devices. The strongest demand comes from companies manufacturing in Asia, particularly China, Vietnam, and Thailand, seeking to optimize their North American supply chains.

Our role is to help these companies assess and adapt their sourcing and manufacturing strategies to minimize disruptions and costs. This often involves evaluating how existing global components can be integrated into US or Mexican assembly operations, while identifying and certifying local suppliers for processes like stamping or welding, which require time and investment. We approach this process in two stages. The first involves immediate strategies to minimize tariff and supply chain impacts. The second is a longer-term planning to restructure manufacturing and assembly so products can qualify under USMCA rules, reducing tariffs to zero or pre-2020 levels of 2.5%, typically within two to three years.

Q: What trends are you seeing in the US–Mexico trade corridor?

A: There is a clear difference between political statements and what is actually happening in supply chains. Politically, US companies highlight domestic production, and Mexican companies emphasize protecting national interests, but in reality, complex supply chains, especially in sectors like automotive, have taken decades to build and cannot be restructured overnight. Despite the rhetoric, nearshoring is advancing. Businesses cannot afford to stop production, even briefly, so they are actively exploring options to maintain continuity while shifting parts of their manufacturing closer to the US market.

We are seeing a significant increase in manufacturing investment in Mexico. While JAMCO and Imperative operate globally, 80%–90% of our infrastructure is dedicated to US–Mexico logistics. Our strategy is firmly focused on strengthening North American supply chains, where demand for efficient cross-border movement is only growing.

Q: How have your clients reacted to tariff-related cost changes, and what role do you play in helping them mitigate those impacts? 

A: Early in the year, when tariff policies were unclear, clients explored options such as importing everything upfront, using Foreign Trade Zones (FTZs), and bonded warehouses to delay or avoid duties. 1Q25 was marked by uncertainty and constant adjustments. Now, while the political environment remains volatile, there is slightly more clarity on the rules, allowing us to develop more structured strategies with clients. We advise based on the best available information, acknowledging that the landscape can still change overnight.

In the long term, the path forward for Mexico involves moving beyond its traditional role as an assembly hub to increase specialized manufacturing capabilities, including processes like stamping and welding that add higher value. This shift will take time, but it is already becoming part of our clients’ strategic planning to mitigate tariff impacts and strengthen North American supply chains.

Q: How are cross-border trade routes performing so far in 2025, and how do you expect them to perform in 2026? 

A: Cross-border trade has been affected by economic volatility and a slowdown in US consumer spending. We saw a dip in the US economy during the first quarter, not enough for a recession, but enough to signal the end of the post-COVID-19 demand surge. 2025 is shaping up to be the first full year where the market resets to a new normal, with companies recalibrating inventory levels in sectors like automotive, specialty vehicles, and consumer electronics. Confidence in both US and Mexican labor markets will be key to sustaining demand.

We expect a “rocky road” through the remainder of 2025, but the outlook for 2026–2027 is positive. Growth will likely be gradual rather than rapid, supported by more stable tariff policies and steady increases in trade volumes across North America.

Q: Which of your services do clients request most frequently, and why? 

A: Beyond our core customs brokerage services in both Mexico and the United States, the biggest growth this year has been in distribution warehousing, particularly on the US side of the border. Of our 185,810m², about 37,160m²–46,450m² are designated as Foreign Trade Zones (FTZs) or bonded facilities. These facilities allow clients to import goods from Asia without immediately paying duties, holding them in bond until they are needed or until tariff status is clarified. This has been especially valuable during periods of uncertainty.

Storing inventory in Laredo provides flexibility: goods can be quickly returned to Mexico or moved into the US market as conditions dictate. Clients increasingly want their inventory close to the border to adapt quickly to regulatory changes, avoid unnecessary costs, and maintain supply chain agility.

Q: Which US–Mexico trade routes have been the most active or strategic for JAMCO this year, and what factors are driving their popularity? 

A: Our most strategic corridor remains the Mexico–I-35 Corridor, with Laredo as the key crossing point connecting Mexico’s largest manufacturing hubs — Monterrey, Queretaro, Toluca, Mexico City, and San Luis Potosi — to the US market. While other gateways like El Paso–Juarez, Tijuana–San Diego, and McAllen–Reynosa are growing, Laredo remains the primary artery for nationwide distribution.

Cities like Monterrey are experiencing extraordinary industrial growth, attracting investors from Asia and the European Union thanks to strong technical education programs and a skilled labor pool. This rapid growth underscores the urgent need for Mexico to invest in infrastructure to handle increased truck traffic and prevent congestion. While Laredo is our core focus, we continue to expand in other strategic crossings to ensure full coverage and capacity for our clients’ needs.

Q: What are your performance and growth expectations for the remainder of 2025, and how is JAMCO preparing for 2026? 

A: For 2025, we expect to grow between 5% and 6%. While this is more modest than the 10%–15% annual increases we have seen in recent years, it is a solid result given that some clients are flat, others are growing, and a few have exited Mexico due to changing consumption trends. Many competitors are facing flat or declining revenues, so maintaining growth is a positive outcome.

Our focus remains on long-term positioning. We continue to invest heavily in M&A to expand where strategic targets align, while also pursuing greenfield expansion by opening new offices when acquisition opportunities are limited. We are enhancing technology to improve operational efficiency and client integration capabilities, and we are recruiting, training, and developing staff at all levels, from warehouse teams to leadership roles.

We believe 2026–2028 will be a period of strong growth for US–Mexico cross-border trade, and we are positioning ourselves to capture that opportunity by reinforcing our role as a leader in North American logistics.

JAMCO is a cross-border trade and logistics service provider that aims to bring value to supply chain processes.