MANUFACTURING IN MEXICO

In today's dynamic manufacturing environment, companies have several attractive options to consider when expanding, relocating or simply starting a new manufacturing facility. The Mexico manufacturing industry is poised, standing ready, willing and able to attract global manufacturing companies to their shores.

HOW DO CORPORATIONS FACING TODAY'S CHALLENGES WEIGH THEIR MANUFACTURING OPTIONS?

One would assume that cost is at the top of the list, however, recent studies have shown that although cost is an influencial factor, it is not always at the top of the list. There are other important factors to consider such as strategic location, quality and experience, exchange rates, just to name a few. Mexico Manufacturing certainly makes a compelling case for itself. 


BEST LOCATION FOR MANUFACTURING
So Close You're Practically in the United States

For global manufacturing companies seeking to reduce costs there is no location in the world that is closer than Mexico. Location factors are important to manufacturers planning for transportation, logistics and time-in-transit costs to get their product to market.

At North America’s southern end, Mexico has next-door access to the United States and Canada. Along with cargo ships for transporting goods, “NAFTA Corridors” and highways connect ground transportation from Mexico to all of North America, allowing products to be moved quickly and just-in-time. Compared to overseas locations like China where transportation can take nearly 30 days by container ship, shipping costs as well as time-in-transit becomes an all-too-critical consideration when manufacturers are operating in a different country.

Baja California is home to some of the top manufacturing areas in Mexico, the northern border cities of Tijuana, Mexicali, and Tecate, all have a long history of trading and manufacturing. Each city has its unique benefits. Mexicali is home to foreign companies in Mexico such as Honeywell, Gulfstream and UTC Aerospace Systems. Over 119 companies call Tecate home which is known for its electronics, medical device, ceramic and plastics manufacturing industries. Over 19 million televisions are manufactured in Tijuana each year where FOXCONN and Samsung, amongst others, have resided for years.


NAFTA & FREE TRADE IN MEXICO
All Manufactureres Welcome!

The North American Free Trade Agreement (NAFTA) is now in its 22nd year and is the world’s biggest success story for international trade agreements. Under NAFTA, the United States, Canada and Mexico, 99% of imports are duty-free with the remaining 1% benefiting from preferential-duty. Additionally, under the Manufacturing, Maquiladora and Export Service Decree, the IMMEX Program allows for goods, raw materials and components to be imported into Mexico on a temporary basis, duty-free and VAT-free, as long as they are returned abroad within the established timeframes (most are 18mos). For the aerospace industries, aircraft and aircraft parts are also free of tariffs.


INDUSTRY EXPERTISE & EXPERIENCE
If it Can Be Made in United States, it Can Be Made in Mexico

FACT: Mexico Exports over $80 billion Annually in Electronics Products

Mexico's entry to the manufacturing arena began more than 50 years ago. At its inception, the draw for foreign manufacturers was its low-cost labor rates. Today the manufacturing landscape is much different; Mexico has attracted global corporations such as Volkswagen, GM, Bombardier, Bose, Eaton and other world class companies by proving the technical skills and capabilities to compete not only in North America, but on the world stage as well.

Tijuana, the most visited border city in the globe, has become a manufacturing powerhouse for companies from all over the world pertaining to major industries such as Aerospace & Defense, Medical Device, Automotive and Electronics.  Cities like Tijuana are burgeoning hubs for manufacturing activities. Products manufactured in Mexico reach far beyond simple assembly, it is common to find companies that design, develop and manufacture some of the most complex products in the marketplace in a variety of industries. From pacemakers to airplanes, Mexico meets and exceeds the standards set by global companies.

Learn more about companies manufacturing in Mexico

Tijuana Industries Snapshot:

mexico manufacturing industries


COST SAVINGS IN MEXICO

The cost savings when manufacturing in Mexico can be found at every level of the operation. From an abundance of highly-skilled and low labor costs, next-door transportation and logistics savings, to reduced or no-tariff import/export on manufactured goods. Add the strong cultural ties, ease of doing business, stress-free travel for operational oversight, low-cost industrial real estate and a pro-manufacturing government, the benefits of manufacturing in Mexico are plentiful and within reach for every sized company. 

Mexico has an abundant highly-skilled, low-cost labor pool catering to the Aerospace & Defense, Electronics, Medical Device, Automotive & Parts, Cleantech and contract manufacturing industries. With an over 257,000-strong manufacturing workforce in the state of Baja California, Mexico alone, finding talent for your production can’t get any easier.

The wages in Mexico are dramatically less than in the United States and 14.6% less than China, according to a KPMG study. Mexico, for the most part, has remained stable in its labor rate averaging anywhere from 1.85 to $2.25 per hour.

Something else to consider is the hours an employee works per week, the US has a 40-hour work week and Mexico has a 48-hour work week, this will increase your production output by 16% . Let’s take a look at an example of a company with 100 employees and compare labor rates to see just how cost-effective it is to manufacture in Mexico.

Annual Labor Cost Comparison: Mexico vs. US:

labor cost manufacturing mexico

Do these numbers look good to you? Get your no-obligation Mexico Total Manufacturing Cost analysis today!

Welcome to Mexico

tijuana baja california mexico downtown A very Important component to consider of the Mexico manufacturing industry is it's culture and language. Though they are not mutually exclusive, cultural and language barriers can pose a threat to the success of any manufacturing site. Working in the manufacturing sector, it is almost certain that a Mexican national will speak English and, along the border, the workforce is not only bilingual but bi-cultural as well. Mexican and U.S. cultures are no doubt different in many ways, but they are both western cultures and in that regard, share more similarities than Asian cultures do.

Electronics Manufacturing Industry in Mexico

Tijuana has carried the crown as the global hub for television manufacturing and continues to do so as plasma, LCD and LED technologies evolve.

cpi mexico manufacturing advantages

Baja California
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UPCOMING TOUR MARCH 16TH
Denisse Martinez CPI MarketingFor more information contact;
Denisse Martinez
CPI’s Marketing Director
Email:
Phone: +1(619)429.4344 Ext. 231
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Advantages Nearshoring Manufacturing Mexico 2016
UPDATED! Download Manufacturing in Mexico 2016 White Paper on PDF format.
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mexico usa manufacturingThe U.S. and Mexico share common interests and are more likely to concur in best practices as they relate to Global Competitiveness

In a nutshell, the U.S. and Mexico cultural similarities will undoubtedly ensure the global competitiveness and economic prosperity of those companies willing to venture into new horizons.

Learn more about the US and Mexico's best practices

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top 10 reasons to manufacture mexico

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