The Maquiladora, a manufacturing solution created to utilize preferential tariff agreements between the U.S. and Mexico, has a wide variety of benefits for businesses to consider when choosing if and who to use for outsourcing. A Maquiladora is based in Mexico, typically near the Mexico/U.S. border, but is operated by a U.S. company. This approach has many benefits for businesses looking to outsource their manufacturing needs. These needs may be due to cost competitiveness or availability of labor to meet demand.