With its rapid economic growth and incorporation into the global economy in recent years, China has been at head of globalization and is now a significant player in international trade. But as the world changes and develops, it's important to think about where globalization would go next: Mexico.

Mexico manufacturing is an attractive place for businesses and investors. For one, it has a large and growing population, with over 130 million people. This provides a large market for goods and services, as well as a large pool of potential employees. Mexico also has a relatively well-educated population, with a literacy rate of almost 95%, which is higher than many other developing countries.

In addition, Mexico has a diversified and growing economy. While it is still heavily dependent on exports to the United States, it has been working to diversify its trade partners in recent years. Mexico has also been working to develop its manufacturing sector, with a particular focus on the automotive and aerospace industries. As a result, Mexico has become a major exporter of cars and aircraft parts to countries around the world. Furthermore, Mexico is trying to take privilege of its proximity to the US and Canada, which makes it a favorable destination for companies seeking to relocate their manufacturing operations.

Another advantage of manufacturing in Mexico is its location and trade agreements. As a country in North America, it is well-positioned to take attraction of the market potential in the region and beyond. Mexico has also established different free trade agreements with countries around the world, which makes it easy for businesses to trade with Mexico and take benefits of its lower labor costs.

Attractive Programs 

Mexico has several programs in place that make it an attractive destination for businesses and investors. One such program is the IMMEX program (Maquiladora Industry or Manufacturera Industry), which allows companies to import raw materials and components into Mexico on a temporary basis without paying duties or taxes. This makes it easier for companies to set up manufacturing operations in Mexico, as they don't need to pay tariffs on the materials they use.

The IMMEX program also enables companies to benefit from the Mexican labor force, which is generally less expensive than in the US or Canada. This can significantly reduce labor costs, making it possible for businesses to increase their profitability.

It's also worth noting that Mexico outperforms China when it comes to manufacturing. One of its greatest advantages is its proximity to Mexico's largest trading partner, the United States. This makes it easier for companies to leverage the North American market and respond quickly to changing demand. Mexico also has an established and well-functioning logistics infrastructure that facilitates the movement of goods within and outside the country for businesses.

Moreover, Mexico has a tradition of being home to different kind of manufacturing industries including automotive, aerospace, electronics, medical devices, and more. This experienced workforce, along with educational institutions dedicated to these industries, provide a skilled and trained labor force that can support different production processes.

On the other hand, China's population and wages are on the rise, making it less appealing as a low-cost manufacturing location. Additionally, it has become more challenging for companies to enter the Chinese market because of the trade tensions between the US and China.

In summary, manufacturing in Mexico offers several advantages to businesses and investors, such as a large and growing market, a diversified and growing economy, a well-educated workforce, established logistics infrastructure, proximity to the North American market, and programs like IMMEX that make it easier for global manufacturing companies to operate in the country. These factors make Mexico an attractive destination for businesses looking to tap into new markets and reduce costs.

Interested in learning more about how you can take these opportunities and set up a manufacturing operation in Mexico under the Shelter Program?

We invite you to contact us. Our team has the knowledge and experience to guide you through the process, from identifying the right location and navigating regulations to sourcing the right labor and managing logistics.

Don't hesitate to reach out, our experts are ready to answer your questions and to guide you through the process of setting up your operation in Mexico.

Further Reading:

• What Does Mexico Manufacture? Products You Didn’t Realize Were Made in Mexico