Moving Manufacturing to Mexico
NovaLink’s low-cost labor environment and close proximity to the U.S. makes Moving Manufacturing to Mexico easy and seamless.
Why Move Manufacturing to Mexico?
NovaLink’s low-cost labor environment and close proximity to the U.S. makes Moving Manufacturing to Mexico easy and seamless. In addition to operating two 200,000-square-foot Mexico Manufacturing factories in the city of Matamoros, NovaLink operates a 78,000-square-foot manufacturing facility in Saltillo, Mexico, and a 60,000-square-foot distribution facility in Brownsville, Texas. Across the board, manufacturing operations are reshoring manufacturing to North America, from big-name corporations to small and medium-sized companies, and avoiding the China tariffs. NovaLink’s Mexico contract manufacturing services are the ideal solution for all companies looking to reduce manufacturing costs.
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.
Mexico Manufacturing Advantage
The U.S.’s top manufacturing base is Mexico, not China. Mexico is great for manufacturing companies because it allows them to reduce their expenses and increase their revenue.
Decreased Time to Market
Texas is literally across the border from NovaLink, and NovaLink has well-developed supply chains.
Inexpensive but skilled Maquiladoras Labor
In addition to the auto and equipment manufacturing industries, Mexican laborers also work in other labor-intensive industries, such as clothing and textiles. Mexican workers earn 30 percent less than their Chinese counterparts.
Increased Investment in Mexico
As a result of the signing of the North American Free Trade Agreement in 1994, Mexico experienced an increase in manufacturing investments, and the pendulum is now swinging back to Mexico’s favor after a significant share of factory work went to China when they joined the World Trade Organization in 2001.
Free Trade Agreements with 44 Countries
There are 44 countries with which Mexico has free trade agreements. Manufacturers from the United States and Canada have access to Mexico through the United States-Mexico-Canada Agreement (USMCA).
What is the USMCA?
USMCA stands for United States-Mexico-Canada Agreement, which was signed on November 30, 2018. Essentially, it replaces the North American Free Trade Agreement (NAFTA) which was in place since January 1994. NAFTA slowly phased out tariffs on most goods between North America’s three main economic powers. All agricultural and textile products, cars, and other goods had their tariffs reduced or eliminated by 2008.
Tariffs Eating Your Profits? Move Manufacturing Out of China
The decision to Move Manufacturing out of China and into Mexico is an easy one when facing tariffs. Imported goods from factories in China are subject to a 25 percent border tax since July of 2019. These taxes, along with other Chinese tariffs, are designed to increase the price of Chinese products for American consumers and businesses. Your goods will be subject to a 25 percent border tax if you manufacture in China, so either you have to raise the price of your goods and pass the costs on to customers or take a hit on your profit margin.
The good news is that there’s a solution to the China tariff crisis: Move your company’s manufacturing to Mexico. Since the new trade agreements are in place, it’s now easier and cheaper to manufacture goods and services between these nations:
- 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 Mexico shelter services manufacturing
- Cost-effective ad more productive labor pool
Explore Other Resources
Please explore these other useful resources to better understand NovaLink Made in Mexico manufacturing: