Why manufacture in mexico

Read more to learn about the most significant reasons why companies should manufacture in Mexico. While manufacturing companies, predominantly from the United States, have been slowly moving production to Mexico over the past forty years, manufacturing in Mexico is now growing at the fastest pace in history.

No longer is it just companies from the United States, as multinational companies from virtually every country in the world are considering a manufacturing footprint in Mexico. Companies are constantly looking for cost savings without sacrificing quality.

It all starts with the low cost of well-trained labor in Mexico. Relative to the United States, and most other developed countries, direct labor in Mexico is approximately seventy percent less expensive.

This competitive labor cost is the driving force behind the success of Mexico manufacturing. However, it is not just inexpensive labor that is contributing to the explosive growth of manufacturing in Mexico.

Mexico has a large, highly educated workforce that can be compared to virtually any developed country in the world. In fact, Mexico now graduates more engineers on an annual basis than the United States. With multiple generations of manufacturing experience, Mexico also has a large pool of talented operational workers and professional managers who are helping sophisticated companies expand well beyond their original expectations. In fact, certain cities in Mexico, such as Tijuana , now have the largest concentration of manufacturing in specific industries, such as medical devices, across all of North America.

After factoring in the cost of transportation and rising wages in Asia, Mexico is generally a lower-cost manufacturing option for the North American market. In addition, corporate executives and operational managers can visit their Mexico operations and manufacturing facilities far more regularly and without having to fly halfway around the world.

The growth of manufacturing in Mexico can be seen across virtually all industries. The expansion of automotive companies in Mexico has attracted over new automotive suppliers to Mexico from around the world in only the past 5 years. Mexico is a country that exhibits stable democratic values, as well as a consistent and transparent regulatory environment.

Maquiladora operations expert, Jose A. Grajeda, is an integral member of the Tecma Group of Companies executive management staff. Seven Benefits of Manufacturing in Mexico. American businesses have been reaping the benefits of manufacturing in Mexico for decades. Among the benefits of manufacturing Mexico are: Advantageous Labor Costs Perhaps the most obvious benefits of manufacturing in Mexico are the cost and quality of its workforce. Supply Chain Length and Cost A company that is taking advantage of the benefits of manufacturing in Mexico has a supply chain that is the fraction of the length that it would be in any other place in the world.

Proximity A close geographical proximity to the United States is another one of the main benefits of manufacturing in Mexico. Producing goods in Mexico as opposed to other more distant locales means that: Flights are faster and cheaper.

For instance, while a flight to Shanghai would take almost an entire day to arrive from the US, travel to Mexico can be achieved in a number of hours. Additionally, flights to Mexico are priced advantageously when compared to the cost of a round trip ticket to China. Time differences are negligible.

For instance, when it is 6 am in Detroit, it is 6 pm in Shanghai. This means that when US and Chinese personal need to communicate this interaction will take place outside of normal working hours. On the contrary, the US and Mexico are, for the most part, on the same work schedule.

When an executive flies to China much productivity can be lost due to the length of the journey and to jet lag. Most individuals require a day or two to adapt to a change of schedule on both ends of the trip.

When an executive flies for work to Mexico this is not an issue. Experienced Workers World-class manufacturing in Mexico by international companies has been occurring for more than five decades. Keep operations close to home Aside from cost savings, one of the main advantages of manufacturing in Mexico is its proximity to the U. Learn more. Free Download Quick Guide to Setting Up a Business in Mexico Get checklists to guide you through the process of setting up a shelter or stand-alone entity in Mexico, covering everything from the initial set-up to finding a site to preparing for trade compliance.

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