Many manufacturing companies choose to outsource their operations to different parts of the world. Some go for China and its manufacturing prowess. Others opt for countries in Europe for the technological advantage. For the majority of US companies, however, Mexico is the perfect outsourcing destination.
There are several reasons why moving your manufacturing to Mexico is a great idea. The country and its manufacturing force offer a wide range of benefits and we are going to take a closer look at the best of them in this article.
Close Proximity
Mexico is our neighbor. That alone is an advantage. The close proximity between Mexico and the United States means you can confidently outsource your manufacturing to Mexico without having to worry about expensive shipping and handling costs.
Items manufactured in Mexico are usually shipped into the US by land. Shipping can be done quickly and efficiently, lowing the cost of outsourcing even further. To make it even better, there is no shortage of shipping options either; you can even ship to global markets directly from Mexico.
Free Trade Zones
Outsourcing your manufacturing to Mexico means you can do mirroring, also known as maquiladora. Maquiladora is basically the process of establishing your own factory in Mexico instead of working with a local company to handle the manufacturing process. It is called mirroring because the entire factory is based on your company’s own standards and procedures.
Maquiladora is usually established in a free trade zone. There are a lot of them across Mexico and they offer more benefits to those manufacturing in the country. For starters, you can benefit from duty-free imports, allowing you to import raw materials into the free trade zones without paying any duty for them. You also get tax credits and incentives, especially for investing in Mexico.
Access to Technology
The close proximity of Mexico once again plays an important role in making the country perfect for outsourcing. Many of the manufacturing facilities in the country are fully equipped and very high-tech. They use robots and skilled workers to maintain high standards. Automation makes the whole manufacturing process more efficient.
Easy access to these technologies enables you to manufacture even the most sophisticated products in Mexico. All you need is a good manufacturing line – or your own in one of the free trade zones – and you can start the manufacturing process right away.
A Supportive Government
The duty-free import, tax credits, and incentives we talked about earlier are just some of the ways the Mexican government shows support for its manufacturing industry and foreign investment. When you want to set up a factory, for example, you can purchase land at a very low price; the government will even give free land to manufacturing companies who create enough jobs for the locals.
The government is really involved in making outsourcing to Mexico, especially in the manufacturing sector, as easy and beneficial as it can be. These are some of the benefits you will be able to enjoy just by manufacturing your products in Mexico.
