Move Manufacturing Out of China​

Move Manufacturing Out of China

Simplifying your supply chain, not worrying about intellectual property theft and easy, more affordable labor pool: there are literally dozens of reasons for your business to Move Manufacturing Out of China and into Mexico with NovaLink.

Since July of 2019, the United States has imposed a 25 percent border tax on goods made from factories in China when they’re imported into the US. The goal of this tax, and the other China tariffs, is to make Chinese products more expensive for American consumers and businesses to buy.

If your company is currently manufacturing goods in China, your goods will be subject to a 25 percent border tax, which will mean you will either have to raise the price of your goods and pass the expense to your customers or accept a cut into your profit margins.

However, there is viable solution for companies who may be considering to Move Manufacturing Out of China: Move your company’s manufacturing to Mexico.

With the new trade agreements between Mexico, Canada and the United States now in place, manufacturing goods and services between these nations is now easier and more cost effective than ever:

  • There are no tariffs for products made in Mexico and imported into the United States that meet NAFTA rules of origin requirements.
  • Lower shipping time for goods to get into the United States
  • Lower average cost of shipping
  • Lower number of days to start manufacturing operations
  • Cost-effective ad more productive labor pool

Making the decision to Move Manufacturing Out of China doesn’t have to be a complex headache that costs your business money; moving manufacturing to Mexico with NovaLink, is an easy, seamless process. Contact us today for an evaluation.

China vs. Mexico: A Breakdown for U.S. Businesses

Read 9 compelling facts about manufacturing in Mexico vs. China from JP Morgan Chase.

Why U.S. Companies Are Moving Their Supply Chains From China to Mexico

NovaLink is committed to the philosophy that transitioning manufacturing to Mexico, with Mexico Supply Chain Services, should be an easy, rapid and cost-effective process. Supply Chain Brain listed reasons why companies are moving their supply chains from China to Mexico.

Ground Transport

Goods can be imported from Mexico via ground transport in a matter of days or even hours. This is never an option for goods manufactured in China, from which everything must come by ocean or air. The former is very time consuming (it can often take weeks), and the latter is very expensive.

“Trusted Partner” Status for Customs

The U.S. offers two programs that help facilitate faster and easier Customs processing for U.S.-Mexico trade: FAST and C-TPAT. Initiated after 9/11, FAST is a trusted traveler/trusted shipper program that allows expedited processing for commercial carriers who have completed background checks and fulfill certain eligibility requirements (much like TSA Precheck for air travelers). FAST certification is for drivers; C-TPAT is a broader program that shippers must apply for. Once a company is certified for C-TPAT, its drivers can then apply for FAST. There are no such programs for U.S.-China trade.

A Transparent Landscape

There are also new modern options for transport that make Mexico attractive. Companies can coordinate door-to-door transportation between the U.S. and Mexico, including procurement of trucks on both sides of the border, customs clearance, insurance, financing, and reporting. This allows manufacturers to focus on their core competency, rather than logistics, and can also reduce the need for big in-house shipping and logistics teams.

Smaller Language Barrier

Spanish is the second-most common language spoken in the U.S., making it relatively easy to communicate with partners in Mexico (and find bilingual staff and vendors).

Time-zone Parity

Mexico operates on the same time zones found in the U.S. — Eastern, Central, Mountain and Pacific.