Why You Should Manufacture in Mexico

Why You Should Manufacture in Mexico
Why You Should Manufacture in Mexico

Mexico has been a hotspot for manufacturing operations in recent decades. It rivals—even surpasses—China as a prospective base thanks to its low operation costs, cheap skilled labor rates, and proximity to the United States. 

It might seem daunting to outsource a key part of your business to another country, but with shelter services providers like Tetawaki, the move is much simpler. Here are some reasons why you should consider Manufacturing in Mexico with Tetakawi:

Low Operational Costs

One of Mexico’s biggest draws is its low operational costs. Just in labor alone, you save almost half of what you’d pay for similar work in the United States. Work is also much cheaper here than in China, another popular outsourcing alternative; not to mention that labor rates grow at an exponentially slower pace. 

Even with the recent 20% increase in Mexico’s daily minimum wage, salaries remain cheaper than in the US. Additionally, the low-cost resources and infrastructure available in Mexico, also promise a lot of savings in the long run.

Proximity to the US

Mexico is a great option for American companies because of its proximity to the North American market. Managers, executives, and staff from US headquarters can visit their Mexico facilities more regularly without having to pay absurd flight prices, getting a visa, or wasting time on a long trip.

Skilled and Competent Workers

Mexico is home to a highly-skilled labor pool. It even has more engineering, manufacturing, and construction degrees per capita than most countries, making them attractive for companies in the aeronautics, automobile, and HVAC industries. 

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There’s also an abundance of skilled technicians who graduate from the country’s many technical programs. Other skilled workers are plentiful, so you don’t have to worry about finding talent to fit general jobs.

Established Manufacturing Resources

The Mexican government has continuously committed to transforming the country into a manufacturing hub, and it’s evident in its investment in necessary resources and infrastructure. Labor, parts, and tech are all accessible, and systems are being improved to ensure minimal disruption in manufacturing operations.

Pro-business Environment

The Mexican government has taken strides to make the country an environment that supports foreign businesses. It has more than forty-four trade agreements in place, which allow both companies and shelter services to import raw materials and components tax-free and duty-free to the country. 

It also has a maquiladora program (known as IMMEX) which expands tax-free and duty-free imports to machinery and equipment and allows foreign companies to enjoy the special income and fiscal benefits to help reduce operating expenses.

How to Start Manufacturing in Mexico

There are copious benefits to manufacturing in Mexico, and if you’re planning to scale your operations, setting your sights across the border is the right move. Manufacturing in Mexico with Tetakawi is your first step towards expansion; we can provide you with the data and insights you need to make the best decisions, then help you navigate through the laws and customs of building your business in the country.