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Unique Benefits: Better Margins, New Customers and Process Improvement
TODCO immediately experienced a significant cost reduction in labor. The average fully burdened Line Assembler's per hour wage in Baja California is $2.52 as compared to California at $13.30, that was an 81% savings just on labor rates! This allowed TODCO to be more price-competitive while increasing their profit margins.
The close geographic proximity of Baja California to Southern California made it an ideal location for Manufacturing.If fact, being in the Baja California region has helped TODCO develop new customers given many of the major automotive manufactures have operations here. This improved process flow helped with TODCO's Lean Manufacturing initiatives and overall manufacturing cost reduction.