Manufacturing in Mexico vs China
When faced with the choice of Manufacturing in Mexico vs China, the most popular option may not be the most cost effective. NovaLink believes that for the best in cost, quality, productivity and delivery, manufacturing in Mexico is the obvious, and best, choice. If you are currently manufacturing your products in China, but find the tariffs imposed by the United States are hurting your bottom line, you may consider moving your production out of China to another country like the US or even possibly Mexico. Moving production from one location to another is always challenging, even more so when moving from across the Pacific. There are many details that need to be adhered to, and not following or paying attention to these details could be costly down the road. This article details information you may need to know when moving out of China, and what some of the best manufacturing options for your company may be, like manufacturing in Mexico.
Made in China Myths
Select any of the facts below to learn the truth about manufacturing in China.
Chinese Labor is Cheaper
In 2000, workers in Mexico’s manufacturing sector earned nearly 60% more than their Chinese counterparts, according to the Boston Consulting Group. Now they earn 11% less.Details
Chinese Facilities are Cheaper
Facilities in China have become so expensive that in 2015 a Chinese Business Group opened an industrial park in Mexico rather than their own country.Details
Chinese Labor is More Productive
“Mexico has continued to stay more productive than China per worker,” Justin Rose, a partner at Boston Consulting Group in Chicago, told Quartz. “Sometime in 2011 or 2012, from a labor-cost perspective, it became cheaper to put manufacturing capacity in Mexico than in China.”Details