At NovaLink, we believe that starting manufacturing operations in Mexico is easy. However, there are many questions we feel potential clients should have answered before they begin their nearshore manufacturing partnership, Here are the 10 most asked questions we receive, along with answers you need to get started with manufacturing in Mexico.
How long does it take to get my product setup and manufacturing running?
Typically set up under our model is quick; within a month. This is dependent on many variables. Lead time on equipment and raw materials to be used, etc. Since NovaLink is the incorporated business in Mexico and holds current maquiladora permits, the time constraint is not on the legal side of setting up. Then of course you have the set up of equipment time and the process of training the operators in the processes.
How much do I need to understand about manufacturing?
It is preferential that you have an understanding of your manufacturing so that you can be a part of the success of the program. It is your product that we would be manufacturing so it is important that we make them to your satisfaction. It is also beneficial when the client has involvement in the manufacturing process set up and approval. However, if that is not available, NovaLink engineers can often times step in and engineer the process and necessary equipment. Mexico and Mexican labor? This is an area that is covered by NovaLink. So the general rule of thumb is that you do not need to know anything getting started, but, rest assured you will learn a lot through the process and the transparency with which NovaLink works
Should I have a spec of my product ready? Is it necessary to have one? If so, how do I get one made?
All companies should strive to have detailed spec packages along with costed Bills of Materials for their products. However, if you don’t, NovaLink’s experience across multiple industries and ERP systems means we can assist you in building not only these items but work aides, line balances and reporting systems for your company.
Do small or big companies do better in Mexico?
Both have succeeded extremely well and failed just the same. Size does not matter! It is how you do it. Who you partner with and what you know. It usually boils down to partner with the right company and people. Those that will learn your business and truly become your partner. You fail, they fail!
Why should I manufacture my product in Mexico?
There are multiple reasons. Available labor pool that is trainable and ready to make a career out of manufacturing. Like the US of the 80’s and 90’s. Proximity to the market. You save time and money by using Nearshore Manufacturing Services. You are now planning to a shorter time period versus months out. This means you hold fewer items in finished form because you are ordering weeks out opposed to months. You also commit less to inventory. You are more flexible of what to convert your raw materials into. What do I need a week from now? That is what I will convert. You also are more able to customize your product to your customer requests. Build closer to the sales cycle and orders while nearshore versus offshore. Labor savings. Mexico is less costly than US labor and is in most cases comparable to other offshore countries as their costs continue to rise disproportionately to Mexico.
How Many Days Does it Take to Begin Operations in China?
If you are lucky and are able to quickly get through the red tape associated with starting operations in Communist China, the average amount of time is 33 days. In Mexico, with the aid of NovaLink’s services, you may be up and running in as little as 6 days. Source
How Long Do Shipments Take From China to the U.S.?
The average time for delivery of products from China, shipping across the Pacific is 4 weeks. The average time for a shipment of products from Mexico, from just across the Texas border, is one.
Does Manufacturing in Mexico hurt U.S. workers?
This is one of the most common manufacturing in Mexico myths. While conceding that many U.S. high-wage manufacturing jobs were relocated to Mexico, China and other foreign locations as a result of NAFTA, Morris Cohen, Wharton professor of operations and information management, argues that NAFTA has, on balance, been a good thing for the U.S. economy and U.S. corporations. “The sucking sound that Ross Perot predicted did not occur; many jobs were created in Canada and Mexico, and [the resulting] economic activity created a somewhat seamless supply chain — a North American supply chain that allowed North American auto companies to be more profitable and more competitive.”
Who are The Maquiladoras in Mexico?
The Maquiladoras in Mexico are the labor pool for the NovaLink facilities and operations. Our relationship with them makes the service and quality we offer to our partners possible.
Do I Need A Lot of Money To Start Manufacturing?
Depends on the project. There will always be a need for capital when you are starting up manufacturing outsourcing in Mexico or relocating one. However with Novalink, we have the infrastructure in place. We also provide the ability for a company to start small and grow into a larger footprint. This means you absorb exactly the overhead proportional to the space and employee level required. Further, NovaLink saves our clients upfront investment in that the client does not need to incorporate in Mexico, hire legal to negotiate union contracts or acquire permits. We already have this in place. NovaLink is also positioned to assist our clients with capital investment if so required.