What are the benefits of the Maquiladoras in Mexico?

The benefits to a U.S.-based business relate primarily to the cost, quality and availability of labor, and the proximity to market. Other benefits of operating through a Maquiladora include:

  • Unlimited duty-free imports
  • Unlimited foreign capital investment
  • Limitless options for type or amount of product that can be manufactured
  • Reduced manufacturing costs
  • High-quality product
  • Reduced transport time and cost (specifically in comparison to manufacturing in eastern countries)

Mexico has remained consistent with costs and taxing, which allows companies to plan budgetary needs in advance and avoid any surprises that may set them back. It has also permitted U.S. companies to rely on Mexico as a manufacturing partner. As of 2015, 90% of Fortune 500 companies have investments in Mexico, making the maquiladora industry vital to the U.S. economy.