MHIA (Material Handling Industry of America) / Dr. Knab summarized an interesting article outlining 7 risks in global supply chain. One of the most interesting development has been an increased awareness of cost pressures while doing business with Chinese suppliers. Hence, many companies are doing near sourcing and trading, setting up plants with Mexico has increased significantly.
http://www.mhia.org/news/industry/9780/top-7-global-supply-chain-risks-in-2010
We believe however, that in several industrial commodities and manufactured components, China and India will continue to be significantly competitive than Mexico. This includes castings, machined parts, stampings, electronics and other areas. However, based on individual customers demands and their resources in China, India vs Mexico, best strategy can be formed.
For assemblies to ship into US and Canada and for those involving voluminous parts, Mexico production makes perfect sense. For making manufactured components such as castings, machined parts, forgings, China and India are likely more competitive