Manufacturing in Mexico vs China

When faced with the choice of manufacturing in Mexico vs China, the most popular option may not be the most cost effective.  NovaLink believes that for the best in cost, quality, productivity and delivery, manufacturing in Mexico is the obvious, and best, choice.

manufacturing in mexico vs china

CASE STUDY: PATAGONIA

In 1996, Patagonia wanted to adjust their global sourcing chain because they were experiencing long transit times for US materials and finished goods as well as high duty rates on foreign materials.  Although NovaLink only manufactured Patagonia’s polar fleece products at the beginning of the partnership, our portion of the business has grown as a result of our quality, speed to market and deep understanding of Patagonia’s products.

Made in China Myths

Select any of the facts below to learn the truth about manufacturing in China.

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Chinese Labor is Cheaper

In 2000, workers in Mexico’s manufacturing sector earned nearly 60% more than their Chinese counterparts, according to the Boston Consulting Group. Now they earn 11% less.

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Chinese Facilities are Cheaper

Facilities in China have become so expensive that in 2015 a Chinese Business Group opened an industrial park in Mexico rather than their own country.

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Chinese Labor is More Productive

“Mexico has continued to stay more productive than China per worker,” Justin Rose, a partner at Boston Consulting Group in Chicago, told Quartz. “Sometime in 2011 or 2012, from a labor-cost perspective, it became cheaper to put manufacturing capacity in Mexico than in China.”

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China vs. Mexico: A Breakdown for U.S. Businesses

Read 9 compelling facts about manufacturing in Mexico vs. China from JP Morgan Chase.

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