Mexico Manufacturing Means Opportunity
Some Mexico Manufacturing Facts
Mexico, not China, is the most favored manufacturing base for companies in the United States. There are many reasons for this, but the most important is the ability for companies to reduce their expenses while increases their revenue by manufacturing in Mexico.
Location, location, location – it is literally right next door, and has well-developed supply chains. Goods can be on their way to destinations in the U.S. in days as opposed to weeks from China.
Mexican laborers, whose wages are 30 % lower than China, are skilled in auto-making and equipment industries, as well as other labor-intensive industries, such as clothing and textiles. The cost of labor adjusted for productivity is the biggest factor in the change – since 2004, Chinese wages have nearly quintupled, while Mexican wages have risen by only 67% (less than 50% in terms of the US dollar).
Following the signing of the North American Free Trade Agreement in 1994, Mexico saw a surge in manufacturing investments and, after a significant share of factory work went to China when they entered the World Trade Organization in 2001, the pendulum is now swinging back in Mexico’s favor.
Mexico has free-trade agreements with 44 countries. The North American Free Trade Agreement (NAFTA) provides access manufacturers in Mexico from the USA and Canada. The Mexican government encourages foreign investments.
Common Mexico Manufacturing Myths
NovaLink is committed to the growth and satisfaction of its clients who are currently or will be committed to Mexico manufacturing in the future. Here are some common manufacturing in Mexico myths.