Industries in Mexico
Industries in Mexico benefit from its strategic location, skilled workforce, and favorable business environment.
Industries Thriving in Mexico
Mexico has emerged as a global manufacturing powerhouse, attracting businesses from around the world due to its strategic location, skilled labor force, and favorable trade agreements. The country's diverse industrial landscape offers significant opportunities across various sectors. Here’s a detailed look at some of the leading industries driving Mexico's economic growth.
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.
Automotive
Discover the ins and outs of auto manufacturing in Mexico, from its history to its current state and future prospects. Learn why Mexico is a hub for automotive production and investment
Textiles
Because of its strategic location and skilled labor force, Mexico's textile industry has grown steadily. In response, more and more companies are outsourcing production to nearshore factories.
Electronics
The Mexico manufacturing advantage is ideal for Manufacturing electronics, which is why many companies manufacturing electronics are choosing to move manufacturing out of China in favor of Mexico.
Furniture
The furniture manufacturing industry in Mexico has experienced significant growth in recent years, becoming an integral part of the country's economy.
As a result of a long history of craftsmanship and its strategic location, Mexico has become a sought-after destination for furniture manufacturers.
IMMEX Program
Manufacturing companies who utilize the IMMEX program enjoy operations savings that companies utilizing manufacturing options in other countries like China, do not. The IMMEX program allows companies providing Mexico shelter manufacturing services to lower manufacturing costs by sending materials and equipment, utilizing a temporary duty-free basis to Mexico, having the materials manufactured or assembled, then re-sent back to the U.S. for sale or distribution. In addition, the IMMEX program also allows the manufacturer in the U.S. to take advantage of a large, skilled, & affordable labor pool for their operations.
Our Facilities
NovaLink clients can reduce overhead costs by only paying for occupied space, labor, and shipping G&A, thanks to our unique model. Brownsville‘s distribution center has a full warehouse for clients. On a daily basis, this location moves $2 million in product to 200 locations across the U.S. and the world.
Brownsville Distribution Facility
Matamoros Facility
NovaLink’s Matamoros facility located at Ave. Prolongación Calle Industrial #196 A Parque Industrial del Norte Matamoros, Tamaulipas 87316 Mexico, features 2 buildings of manufacturing space in addition to the NovaLink Headquarters. Novalink’s Mexico shelter manufacturing services are done primarily at these locations.
- Nova A: 203,172 sq. ft of manufacturing space
- Nova B: 201,739 sq. ft of manufacturing space.
Saltillo Facility
NovaLInk operates a 78,000 square foot manufacturing facility in Saltillo, Mexico.
Is it Cheaper to Manufacture in Mexico?
While manufacturing in China may provide some immediate cost advantages, it is generally more cost-effective to operate manufacturing operations in Mexico over the long term.
- Manufacturing Labor is Less Expensive and More Plentiful than China
- There is an abundance of warehousing and manufacturing space on the border of the US & Mexico (particularly in Texas) that is significantly more inexpensive than in China.
- In light of the current supply chain problems using sea freight, the speed of the arrival of goods from Mexico to the US is perhaps the greatest advantage offered by manufacturing in Mexico. In comparison to China, it takes a fraction of the time for your products to reach American warehouses and stores.
- US buyers, citing poor quality and delays from China, are buying more goods and supplies from factories located in Mexico.
- Due to the US Free Trade Agreement with Mexico, it is relatively inexpensive and almost seamless to move goods across the border. Currently, Chinese goods entering the US are subject to high tariffs, which makes the process of transporting them into American markets very expensive.
- In Mexico, energy costs are comparable to those in the United States, making them both cheaper and more environmentally friendly. There is a high dependence on coal in China, and there is a gas shortage, making energy costs high and causing frequent power outages.
- The exchange rate for the Peso compared to the US dollar is very favorable, allowing investments in Mexico to go further than investments in China.
- The intangibles of manufacturing in Mexico; easy setup model, protection against intellectual property theft and limited legal liabilities are benefits that are not offered when manufacturing in China.
Why Outsourcing Manufacturing to Mexico Makes Sense
Modern businesses are constantly seeking ways to optimize their operations and gain a competitive edge. Mexico is one of the countries that have gained considerable traction in recent years when it comes to outsourcing manufacturing. As a result of its strategic location, skilled labor force, cost advantages, and favorable trade agreements, Mexico offers numerous advantages to companies looking to streamline their production processes.
Are You Ready to Begin Manufacturing in Mexico? Contact Us for a Free Consultation
Contact us and let's start building something!
Use the details to the right or the form to contact NovaLink.
Office
6665 Padre Island Highway
Suite B
Brownsville, Texas 78521
Hours
Mon-Fri: 8am - 5pm