Mon - Fri: 8:00 - 18:00
855.480.0837
Toll-Free Number
Manufacturing costs in Mexico are significantly less than in the United States. Manufacturing labor costs in Mexico can be a fifth of the cost less depending on the position. Logistics and transportation costs are lower in Mexico versus China, but manufacturers enjoy the added time saving advantage of being next door to their final markets in the United States. In addition manufacturers find more cost advantageous industrial real estate and facilities, utility costs, and more.
Mexico has an abundance of highly skilled, low-cost labor that is well-versed in aerospace, electronics, medical device, automotive manufacturing and other mexico industries. The average hourly wage in Mexico versus for an entry level assembler is $3.50 dollars an hour, allowing your manufacturing operation to significantly reduce labor costs while still maintaining the same high-quality as you would at home. Unlike the U. S’s 40-hour workweek, Mexico’s work week of 48 hours also increases your weekly productivity objectives.
The costs to import raw materials into Mexico may be significantly reduced when operating under the CPI Shelter program that includes the IMMEX permit if those goods are processed and exported within the IMMEX program timeframes. Transportation of final goods to your markets are going to be notably less from Mexico versus China due to proximity to the US and Canada.
According to the Kearney 2020 Reshoring Index, it takes 75% less time to transport goods to the customer from Mexico versus Asia.
Mexico has a modern and mature industrial real estate market. Class A to Class C spaces are available where you will find shell, semi-finished and built-to-suit options, as well as inexpensive land for new facility construction. Let’s look at some major manufacturing hub’s average monthly leasing rates:
When CPI helps you during the site selection process additional costs such as tenant improvements, monthly maintenance fees, security, and sewer hook ups and disposal will be discussed with the industrial real estate representative and may be a part of your negotiations. Some industrial parks offer free months’ rent as well as TI allowances.
SO YOU CAN FOCUS 100% ON MANUFACTURING!
Each city in Mexico has its own average utility costs. CPI will give you more specific costs when we run your free cost analysis based on your ideal location and production needs. Some utility costs for Mexico manufacturing facilities may be commiserate with the U.S.
Executives should consider the regulatory costs of doing business in Mexico. Many of these costs such as company incorporation, permits, and registration activities are incurred during the startup phase of your expansion to Mexico. When companies choose to work with a shelter company provider like CPI, these costs can be reduced or eliminated by operating under CPIs existing corporation and IMMEX permits as a part of the shelter maquiladora program.
When exploring foreign sites for manufacturing expansion, the local currency exchange rate can be an important factor. Just how far will your dollar go when buying goods and services to support your manufacturing operation? In Mexico, not only will you realize labor, transportation, logistics and real estate cost savings, but your purchasing power using the dollar is advantageous.
We at CPI are always looking at every way a manufacturer can save money by operating in Mexico and that includes the US Mexico exchange rate. The US Dollar to Mexican peso exchange rate has highly favored foreign companies operating in the region. For an in depth look at just how much you can save, click here to read our interview with a currency specialist and find out the cost savings benefits for manufacturers.
Discover the immense potential of electronics manufacturing in Mexico by delving deeper into its thriving industry. We invite you to download our comprehensive white paper on electronics manufacturing in Mexico, which provides valuable insights, trends, and strategies for success in this dynamic sector.
USA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA
Mexico Corporate Office
Ph: 855.480.0837
Blvd. Tomas Alva Edison 14022
Int. 7A, Tomas Alva Edison
Tijuana, BC 22163, Mexico
info@co-production.net
Mexico Monterrey Office
Av. Benito Juarez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo Leon 64000, Mexico
info@co-production.net
USA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA
Mexico Corporate Office
Ph: 855.480.0837
Blvd. Tomas Alva Edison 14022
Int. 7A, Tomas Alva Edison
Tijuana, BC 22163, Mexico
info@co-production.net
Mexico Monterrey Office
Av. Benito Juarez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo Leon 64000, Mexico
info@co-production.net