Click to Discover the Top 10 Mexican Cities for Quality of Life in 2024: Key Insights for Manufacturing Expansion

Discover the Top 10 Mexican Cities for Quality of Life in 2024
Mon - Fri: 8:00 - 18:00
Sat-Sun Closed
855.480.0837

Toll-Free Number

8716 Sherwood Terrace
San Diego, CA 92154 USA
Certified ISO 9001:2015 Company
UTILITIES COSTS IN MEXICO FOR MANUFACTURING

WHAT DOES IT COST TO MANUFACTURE IN MEXICO?

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.

Maximizing Efficiency and Cost Savings

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 $4.90 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.

LOGISTICS AND TRANSPORTATION COSTS IN MEXICO

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.

WHAT DOES IT COST TO MANUFACTURE IN MEXICO

INDUSTRIAL REAL ESTATE COSTS IN MEXICO

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:

  • Tijuana average $0.48 -$0.52 US Dollars per square foot.
  • Mexicali, average $0.34 - $0.42 US Dollars per square foot.
  • Ciudad Juárez, average $0.40-$0.42 US Dollars per square foot
  • Visit our strategic locations section to see more location-specific industrial real estate information.

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.

We Handle the Complete Set-up of Your Facility

SO YOU CAN FOCUS 100% ON MANUFACTURING!

MANUFACTURING UTILITIES COSTS

Analyzing Utility Costs in Mexico's Manufacturing Sector

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.

  •  Electricity: Electrical costs while manufacturing in Mexico vary by city, however on average you can expect $0.11 per kWh. Demand and usage can play a factor in monthly rates which CPI will help you plan for based on your electrical needs with production equipment. CPI will also outline which costs are needed for initial hook ups and a deposit if required by the electrical company.
  • Water: Water costs in Mexico are typically around $0.9 USD per gallon. Depending on location and your needs, the government-run water company may require a deposit. CPI will help you determine what regulations and restrictions may exist for companies needing water discharge as a part of their manufacturing process.
REGULATORY COSTS OF DOING BUSINESS IN MEXICO

REGULATORY COSTS OF DOING BUSINESS IN MEXICO

Streamlining Business Operations with a Shelter Company Provider

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.

EXCHANGE RATE SAVINGS IN MEXICO

Maximizing Purchasing Power for Manufacturing Operations

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.

Electronics Manufacturing in Mexico

DOWNLOAD WHITE PAPER:

Electronics Manufacturing in Tijuana and Mexico

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.

Ready To Establish Your Manufacturing Operation In Mexico?

Look No Further Than Our Team Of Specialists!

Whether you have questions about the process or are ready to get started, we're here to help.
Contact us today at (855) 480-0837 to learn how we can provide you with expert support every step of the way, from exploration to setup and beyond. With our extensive experience providing Shelter Services in Mexico, we'll ensure the success of your manufacturing operation in Mexico.
Invalid Input

Invalid Input

Invalid Input

Invalid Input

Invalid Input

IMPORTANT: For enhanced security, kindly provide your business email address exclusively. Please note that this form does not support email addresses from non-corporate accounts such as Gmail, Hotmail, Yahoo, and others.

Invalid Input

Invalid Input

Co-Production International, Inc. Administrative Service Provider San Diego, California
Sales and Consultation Inquiries:
Toll Free: 855.480.0837

ico flag usaUSA Corporate Office
Ph: 619.429.4344
8716 Sherwood Terrace
San Diego, CA 92154
USA

ico flag usaMéxico Corporate Office
Tel.: 664.454.3330
Boulevard Agua Caliente 4558
Int. 701, Colonia Aviación
C.P. 22014, Baja California
info@co-production.net

ico flag usa Monterrey Nuevo León Office
Av. Benito Juárez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo León 64000, Mexico
info@co-production.net

Co-Production International, Inc. Administrative Service Provider San Diego, California

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

ico flag usaMéxico Corporate Office
Tel.: 664.454.3330
Boulevard Agua Caliente 4558
Int. 701, Colonia Aviación
C.P. 22014, Baja California
info@co-production.net

ico flag usaMonterrey Nuevo León Office
Av. Benito Juárez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo León 64000, Mexico
info@co-production.net

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

ico flag usaMéxico Corporate Office
Tel.: 664.454.3330
Boulevard Agua Caliente 4558
Int. 701, Colonia Aviación
C.P. 22014, Baja California
info@co-production.net

ico flag usaMéxico Monterrey Office
Av. Benito Juárez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo León 64000, Mexico
info@co-production.net