Why You Should Be Manufacturing In Mexico

A successful business owner is always looking for a way to improve their margins while maintaining -- or even improving -- the quality of their product. For years, China was a popular destination for businesses looking to manufacture, due to low labor costs and a rapidly-developing manufacturing infrastructure. And the region is well established with all the infrastructure and support systems needed to provide successful operations.

However, Mexico has long been an undervalued, and increasingly compelling, alternative to Chinese manufacturing. Here are just a few reasons you should manufacture in Mexico.

Much easier to ship to the United States

It almost goes without saying, but shipping products from Mexico is significantly less difficult (and therefore less expensive) than shipping from China or other East Asian manufacturing hubs. This is compounded by the fact that roads in Mexico are significantly better than they were even a decade or two ago, largely thanks to the fact that.

The Mexican government is investing money into infrastructure

The Mexican government has invested more than $226 billion in supply chain infrastructure, which includes improvements in assets ranging from seaports to railways and, of course, highways and roads. In Tijuana and Mexicali alone there is over 83 million sq. ft. industrial space in Mexicali and Tijuana. It also has the added nearshore benefit of Mexico being in a similar time zone as the US and Canada unlike the 13 hour difference between the states and China.

Many labor costs are lower in Mexico

Labor costs continue to be competitive in Mexico, especially when compared to the United States. With improvements in automation and other industrial technologies, these advantages are only set to multiply over the next years and decades, especially when you consider.

Mexico's engineering workforce is growing substantially

Mexico is currently graduating a significant number of engineers from their universities -- upward of 100,000 per year. With this significant growth in technically-trained Mexican workers, the other advantages already mentioned can be leveraged by highly-trained candidates.

Putting manufacturing operations nearshore in Mexico, Baja California, as opposed to offshore in China or other far flung countries, also gives companies nearby access to four airports, an international railroad line, and two commercial seaports that offer worldwide shipping capabilities.

Ivemsa has been a leader in engineering and manufacturing in Mexico for 34 years, and will continue to leverage the advantages of the increasingly-compelling advantages of manufacturing in Mexico. We serve companies around the globe with nearshore manufacturing solutions in Mexico, from shelter & human resource to site selection & more to suit any business model.