Nearshoring is a production outsourcing model where a company subcontracts manufacturing in a nearby country such as Mexico. Manufacturing closer to home reduces supply chain risks. What is nearshoring? The concept of nearshoring is derived from “offshoring.” This is a mechanism by which companies transfer production processes to third parties located in distant destinations to […]
The Difference Between Manufacturing Costs and Production Costs
One of the most common financial oversights a company makes when beginning a manufacturing project is not anticipating the full scope of costs. A sound business case will take into account both the manufacturing cost of the project and the production costs of the operation, to ensure the manufacturing project can continue to move forward. […]
Startup Manufacturing: What You Need to Know
Traditionally, startups have contracted their manufacturing operations out to factories in Asia. As offshore labor costs increase, product quality concerns arise, supply chains from across the Pacific are impacted, and tariffs are increasing, more and more companies are relocating their manufacturing operations back to North America and Mexico. Is there a right way to begin? […]
The Benefits and Limitations of Shelter Operations
NEAR SHORING OPTIONS IN MEXICO Guest Post By Jeffrey Cartwright, Shoreview Advisors | Often when we start talking with a company that is looking to near shore their manufacturing, we’re asked about the options available and what makes the most sense. There are 3 different strategies for the near shoring of products in Mexico. While all […]
Labor law in Mexico: An Overview
Labor law in Mexico consists of a set of legal rules that establish the relationship between employee and employer. This is reaffirmed with an employment contract. In this agreement, the contract will specify the terms of employment set by the company. Details such as the length of the workday, rest days, salary, and vacations, among […]
