Analyzing Potential Manufacturing Plant Locations

Establishing a new facility is a complex process that requires a large investment and detailed analysis of internal production needs, facility features and site location requirements.  The first step in this process is to select the country and region that best satisfies manufacturing needs.

Mexico has rapidly become a top destination for medical device manufacturing. Executives and trade organizations cite major cost savings and ease of business processes as some of the main reasons for selecting Mexico.

I sat down with our friends at Co-Production International to gain a clearer understanding of how manufacturers analyze the opportunities available for site location and learned that some of the main factors influencing site assessment are:

• Ease of trade: free trade zones & intellectual property rights (such as NAFTA)
• Proximity to major markets (in Mexico’s case this is the US and Canada)
• Social infrastructure: investor friendly attitude of the community
• Established commercial infrastructurecommercial infrastructure (land, facilities, transportation)
• Labor supply: low-cost, highly skilled workforce
• Supply chain access and exposure / proximity to potential new clients and suppliers
• Economic stability, safety and security

By Generis Group