Site Selection in Mexico

The Mexico Manufacturing Advantage

Site selection in Mexico is key to success in manufacturing operations. An incorrect decision on site selection can cause problems with manufacturing productivity and logistical costs. Below are some suggestions for making the best site selection in Mexico to begin manufacturing production.

Best Geographic Location

Mexico’s industrial capabilities make where to locate Mexico manufacturing operations less difficult; most locations in the country have some sort of industrial facility and background, although some locations are better than others. The type of manufacturing a company is going to initiate and how often the finished goods will be sent back to the U.S. will play an important role in the final site selection in Mexico for manufacturing. 

Cities which are close to or right on the border to the U.S., such as the manufacturing border city Matamoros where NovaLink’s manufacturing plants are located, are generally preferable to companies who will be shipping a large amount of finished manufactured goods on a regular basis. Other areas such as Tijuana, bordering California, and Reynosa & Juarez, which both share the border with Texas, are also prime locations for consideration when doing research into site selection in Mexico.

Best Infrastructure

When manufacturing companies are considering site selection in Mexico, it is important to consider whether or not the infrastructure of the region will be adequate for their manufacturing operations. Some things to take into account when looking at infrastructure for site selection in Mexico:

  • Does the potential site have easy access from the U.S.? Is there access to highways, railroad, ports & airports?
  • If you plan to buy a manufacturing facility rather than working with a Nearshore manufacturing partner like NovaLink, does the potential site have adequate access to essential utilities like water, electricity & sanitation?  
  • Does the potential site provide good security?
  • Will the location have potential for future growth?  If not, you may have to repeat the entire site selection in Mexico process over again!

Best Local Suppliers

A good location for manufacturing operations does not just mean the best physical location; a good site selection in Mexico process takes into consideration the entire area, which includes ensuring there are plentiful and competent local suppliers for raw materials to keep operations flowing. 

Having a developed local supply base in products and services will ensure there is never an interruption in manufacturing lines (waiting for materials to be shipped to the plant) or gaps in your supply chains. 

Most Available and Affordable Labor Pool

A  major concern of any manufacturing company is the availability of affordable, large, educated & skilled labor. When conducting due diligence into site selection in Mexico, audit the labor pool of the region carefully as the labor skillset and cost may vary.

Fortunately, this problem can be easily solved by the IMMEX program. The IMMEX program is an acronym in Spanish for “Manufacturing, Maquila and Export Services Industries Program” (Industría Manufacturera Maquiladora y de Servicio de Exportación). More commonly, the IMMEX program is known by their traditional name “Maquiladora”.

Border cities such as Matamoros, Reynosa & Juarez have an abundance of skilled & affordable workers courtesy of IMMEX. The employees associated with IMMEX have considerable skills in manufacturing textiles, electronics, automobiles & goods for aerospace/aviation. If the location for the future plant is in an area where there are surplus pools of workers available, a company may scale up their operations when busy and scale down during downtimes in production. 

If site selection in Mexico sounds like a daunting task for a company starting manufacturing, NovaLink has over 30 years of experience providing shelter or contract manufacturing services to a variety of industries, including site selection. If you would like to consider utilizing a nearshore manufacturing partner or solution for your business, contact NovaLink today: 956-621-7362 or visit our website: www.novalinkmx.com

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