Mexico Manufacturing Advantages

Mexico Manufacturing Advantages

Mexico, not China, is the most favored manufacturing base for companies in the United States.  There are many reasons for this, but the most important is the ability for companies to reduce their expenses while increasing their revenue by manufacturing in Mexico.

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It is literally right across the border from Texas, and NovaLink has well-developed supply chains.

Mexican laborers, whose wages are 30 % lower than China, are skilled in auto-making and equipment industries, as well as other labor-intensive industries, such as clothing and textiles.

Following the signing of the North American Free Trade Agreement in 1994, Mexico saw a surge in manufacturing investments and, after a significant share of factory work went to China when they entered the World Trade Organization in 2001, the pendulum is now swinging back in Mexico’s favor.

Mexico has free-trade agreements with 44 countries. The North American Free Trade Agreement (NAFTA) provides access manufacturers in Mexico from the USA and Canada. The Mexican government encourages foreign investments.