Contract Manufacturing in Mexico Means Quality
NovaLink has 30 years experience in Contract Manufacturing in Mexico; contract Manufacturing in Mexico does not have to be difficult; we make Mexico manufacturing an easy and seamless solution. NovaLink has established itself as a world-class example of how nearshore companies produce high-quality manufactured goods in many of the growing manufacturing industries in Mexico.
NovaLink’s near-shore shelter manufacturing services are the ideal solution for all companies looking to reduce costs associated with manufacturing from large, blue-chip corporations with brand name labels to the small and medium-sized companies that have limited financial and human resources to effect a near-shore or full service manufacturing operations.
NovaLink Manufacturing Facility Video
NovaLink has released a new video highlighting the versatility of their manufacturing facility in Matamoros, Mexico. In this video, you will be able to see the factory and its associates in action. The video, which was filmed on the floor of the manufacturing facility, illustrates the variety of manufacturing operations and the wide range of skills represented by the workforce. As well as demonstrating NovaLink’s commitment to first class manufacturing, the video also emphasizes its commitment to safety protocols for the health of its workers and clients.
Viable Labor Pool
Low labor costs in Mexico provide many benefits than just a lower bottom line; see how your business can profit from utilizing the low-cost labor pool in Mexico.
Supply Chain Solutions
U.S.-made parts and products are used by Mexico manufacturers up to four times more than China; this is a tremendous benefit to suppliers in the United States.
The Mexican government is very friendly to foreign business and investment, as demonstrated by their 44 trade agreements with countries around the globe, including the recently-signed USMCA agreement.
Proximity to the US
Production is closer to the U.S. border; faster time to the consumer market than shipping across the Pacific Ocean, which can take weeks. Manufacturing in Mexico means lower transportation, trucks and trains as opposed to ships, and the abundance of warehousing make Mexico a cost-effective solution.
What is Full Package Manufacturing?
A good full package manufacturing partner should have the basics: skilled labor, equipment, ample factory floor space and most importantly, the experience to produce quality textile products, ensuring any Mexican clothing manufacturing project is a success. At a minimum the full package manufacturing partner should also offer the following skills and processes.
Maquiladora in Mexico FAQ’s
The IMMEX program is a manufacturing solution created in the 1960’s to utilize preferential tariff agreements between the U.S. and Mexico & to encourage foreign investment in that country. The IMMEX program is an acronym in Spanish for “Manufacturing, Maquila and Export Services Industries Program” (Industría Manufacturera Maquiladora y de Servicio de Exportación).
What Are The Benefits to Using the Maquiladora?
U.S.-based businesses benefit from low cost, quality, and availability of labor, as well as proximity to markets. 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)
According to the Wall Street Journal: “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.”
What Role Does the Maquiladora Play in the Mexican Economy?
Maquiladoras are also vital to the Mexican economy. According to the Maquiladora Guide: Doing Business in Mexico, which was published by PriceWaterhouseCoopers, “Maquiladoras are the foundation on which Mexico’s GDP is built, and without their support the Mexican economy would suffer. Maquiladoras are responsible for more than 65 percent of the country’s manufacturing exports, and employ 80 percent of the manufacturing labor force.”
What Benefit Does the Maquiladora Provide for U.S. Manufacturing?
As a result of a manufacturing revival in the Americas, the Maquiladora industry is currently experiencing growth. According to a study by the Federal Reserve, “Whereas China benefitted tremendously when the country entered the World Trade Organization in 2001, today the pendulum is swinging back. China’s GDP climbed from approximately $2 trillion in 2005 to just under $11 trillion in 2015 and as the country grew wages nearly quintupled over the same time horizon, making China less competitive today. Trade agreements between the U.S. and Mexico, and Mexico’s reliance on maquiladoras have led to stable and consistent costs of labor, which are major benefitting factors for companies looking to outsource some or all of their manufacturing needs.”
How Does a Maquiladora Differ From a Regular Factory?
Maquiladoras in Mexico are factories that operate under preferential tariff programs set up and administered by the American and Mexican governments. Material, components, and production equipment used in maquiladoras are allowed to enter Mexico duty-free. Maquiladoras are also often referred to as “Shelter manufacturing services“.