Time and time again, companies in the United States of America have been seen to move their manufacturing factories from China to Mexico. China is a large provider of parts and products and dominates the global manufacturing market, among other things.
The rising tensions between America and China, the political instability, and a striking difference between their basic ideals—seem to be some of the factors that aren’t prone to strong, positive and inductive working environments.
Under such conditions, businesses in America are slowly shifting their manufacturing to the south of the border—in Mexico. The many benefits of manufacturing in Mexico, from the enormous labor force to the lower cost risks and ease of access, are briefly discussed here:
1. Labour Force: Mexico gives you access to an enormous labor force, with lesser costs than America and China. Not only Mexican labor force exceeds in number but also exceeds expectation in experience and education. The labor costs are one-third as compared to America and China and provide more experienced labourers per capita. This advantageous labor force is one of the lead benefits of moving manufacturing in Mexico.
2. Free Trade Agreements: Mexico is perhaps the only country in the world with a pro-business attitude and a positive working environment. Mexico is in 14 Free Trade Agreements (FTAs) with almost 50 countries. It makes Mexico one of the leading countries in the global exporters and gives it gross access worldwide, including Europe, South Africa, Asia and others. These agreements reduce barriers to the trade, and the country’s democratic ideologies also support room for improvement and success.
3. Lower costs: Where operations in Mexico are 70% cheaper than China and America, they also have lesser taxation. Your company can immediately save up to 40-50% just by moving manufacturing to Mexico. Moreover, appealing shelter services programs for your company make the whole process of manufacturing in Mexico more compelling. By enrolling your company under the shelter services and starting operations, you save not only time but also costs. Your companies can capitalize on the maquiladora program that provides legal accessibility and reduction of costs, among other benefits.
4. Close proximity: Mexico’s proximity to the American consumer market makes it a more persuasive choice than China or other countries in the world. This close proximation comes with a list of benefits. Not only executive flights and tours are cheaper and faster, but the cost of transporting material and products is also reduced. In addition to that, the time zone difference is almost negligible.
5. Infrastructure: For nearly two decades now, Mexico has been manufacturing world-class products and supports a large cluster of industries with stable infrastructures. With this already developed and stable infrastructure, companies can reap benefits with the many easy of access and advantageous programs supported in Mexico
In conclusion, you can reap many benefits by setting up your manufacturing company in Mexico—including those opportunities that hardly come by in other countries. It can be a stepping stone for your future ventures.