LATEST NEWS - MEXICO: Leading Destination for Electronics Manufacturing | FDI & Investment Insights - Click to Read More >>>

LATEST NEWS - MEXICO: Leading Destination for Electronics Manufacturing | FDI & Investment Insights - Click to Read More >>>

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8716 Sherwood Terrace
San Diego, CA 92154 USA
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Manufacturing in Mexico Advantages

Manufacturing in Mexico extends a combination of advantages not found anywhere in the world: lower labor costs, next-door proximity to North American markets, free trade agreements with nearly every country, a plentiful and highly skilled workforce, and production quality commiserate with U.S. and international standards.

Why Are Global Companies Manufacturing in Mexico?

Every major global manufacturer can be found here with Mexico’s principal manufacturing industries being aerospace, automotive, auto parts, electronics, medical devices, furniture, metal mechanical, and plastic injection molding. Some manufacturers in Mexico focus on lower-cost assembly or contract manufacturing operations, while others opt for their own maquiladoras in Mexico that are complementary and collaborative with the rest of their supply chain.

Manufacturing in Mexico

Key Advantages

  • Mexico has the most free trade agreements in the world, NAFTA/USMCA (North America) and the new CPTPP gives manufacturers and suppliers tariff-free access to 11 countries throughout the Asia-Pacific (Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam).
  • Duty free temporary imports of raw materials and machinery under Mexico’s IMMEX program
  • Less volatile trade relationship, we are geographical neighbors with deeply integrated economies.
  • Stone’s throw proximity to the United States with dedicated commercial border crossings and deep-water port connected to the world.
  • Decades of foreign direct investment and governmental investment in the billions of dollars for modern facilities, infrastructure, roads, electricity, and water.
  • Highly skilled and plentiful labor force that is largely bilingual and bicultural.

Logistics and Infrastructure

Reduce Costs and Optimize Logistics

For global manufacturing companies seeking to reduce costs there is no location in the world that is closer than Mexico. Location factors are important to manufacturers planning for transportation, logistics and time-in-transit costs to get their product to market.

At North America’s southern end, Mexico has next-door access to the United States and Canada. Along with cargo ships for transporting goods, “USMCA” and highways connect ground transportation from Mexico to all of North America, allowing products to be moved quickly and just-in-time.

Compared to overseas locations like China where transportation can take nearly 30 days by container ship, shipping costs as well as time-in-transit becomes an all-too-critical consideration when manufacturers are operating in a different country.

We Handle the Complete Set-up of Your Facility

SO YOU CAN FOCUS 100% ON MANUFACTURING!

NAFTA, USMCA and Free Trade in Mexico

NAFTA/USMCA: 22 Years of International Trade Success and Duty-Free Impact

The  North American Free Trade Agreement  (NAFTA/USMCA) is now in its 22nd year and is the world’s biggest success story for international trade agreements. Under USMCA, the United States, Canada and Mexico, 99% of imports are duty-free with the remaining 1% benefiting from preferential-duty.

Additionally, under the Manufacturing, Maquiladora Program and Export Service Decree, the  IMMEX Program  allows for goods, raw materials and components to be imported into Mexico on a temporary basis, duty-free and VAT-free, as long as they are returned abroad within the established timeframes (most are 18mos). For the aerospace industry, aircraft and aircraft parts are also free of tariffs.

Labor Force in Mexico

Mexico's Skilled and Affordable Labor Force Driving Diverse Industries

Mexico has an abundant highly-skilled, low-cost labor force catering to the Aerospace & Defense, Electronics, Medical devices, Automotive & Parts, Cleantech, and contract manufacturing industries.With over 9.76 M (2023) strong manufacturing labor force in Mexico.

Something else to consider is the workweek in Mexico,  the US has a 40-hour workweek and Mexico has a 48-hour workweek, this will increase your production output by 16%.

The wages in Mexico are dramatically less than in the United States and 14.6% less than in China, according to a KPMG study. Mexico, for the most part, has remained stable in its labor rate averaging anywhere from $4.82 per our.

EXPERIENCE & EXPERTISE

Evolution of Mexico's Manufacturing Industry: From Low-Cost Labor to Global Competence

Mexico's entry to the  manufacturing  arena began more than 50 years ago. At its inception, the draw for foreign manufacturers was its low-cost labor rates. Today the manufacturing landscape and Mexico is much different; Major industries in Mexico have attracted global manufacturing companies such as Volkswagen, GM, Bombardier, Bose, Eaton and other world class corporations by proving the technical skills and capabilities to compete not only in North America, but on the world stage as well.

Tijuana,  the most visited  border city  in the globe  has become a manufacturing powerhouse for companies from all over the world pertaining to major industries in Mexico such as  Aerospace & Defense,  Medical Device,  Automotive  and Electronics.  Cities like Tijuana are burgeoning hubs for manufacturing activities.

Mexico Vs China Manufacturing Comparison

DOWNLOAD INFOGRAPHIC:

Top 10 Reasons Manufacturing in Mexico Vs. China

Over a decade ago manufacturers wouldn't hesitate to say that China and other overseas locations were hands-down cheaper than anywhere in the world. That is no longer the case.

To explore the compelling reasons why manufacturing in Mexico has risen to the top, click the button below and access the infographic. Gain valuable insights and make informed decisions for your business. 

Ready To Establish Your Manufacturing Operation In Mexico?

Look No Further Than Our Team Of Specialists!

Whether you have questions about the process or are ready to get started, we're here to help.
Contact us today at (855) 480-0837 to learn how we can provide you with expert support every step of the way, from exploration to setup and beyond. With our extensive experience providing Shelter Services in Mexico, we'll ensure the success of your manufacturing operation in Mexico.
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Co-Production International, Inc. Administrative Service Provider San Diego, California
Sales and Consultation Inquiries:
Toll Free: 855.480.0837

ico flag usaUSA Corporate Office
Ph: 619.429.4344
8716 Sherwood Terrace
San Diego, CA 92154
USA

ico flag usaMéxico Corporate Office
Tel.: 664.454.3330
Boulevard Agua Caliente 4558
Int. 701, Colonia Aviación
C.P. 22014, Baja California
info@co-production.net

ico flag usa Monterrey Nuevo León Office
Av. Benito Juárez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo León 64000, Mexico
info@co-production.net

Co-Production International, Inc. Administrative Service Provider San Diego, California

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

ico flag usaMéxico Corporate Office
Tel.: 664.454.3330
Boulevard Agua Caliente 4558
Int. 701, Colonia Aviación
C.P. 22014, Baja California
info@co-production.net

ico flag usaMonterrey Nuevo León Office
Av. Benito Juárez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo León 64000, Mexico
info@co-production.net

ico flag usaUSA Corporate Office
Ph: 619.429.4344 / 855.480.0837
8716 Sherwood Terrace
San Diego, CA 92154 USA

ico flag usaMéxico Corporate Office
Tel.: 664.454.3330
Boulevard Agua Caliente 4558
Int. 701, Colonia Aviación
C.P. 22014, Baja California
info@co-production.net

ico flag usaMéxico Monterrey Office
Av. Benito Juárez 1102 Col. Centro
Piso 4 Torre Sur, Oficina 432
Monterrey, Nuevo León 64000, Mexico
info@co-production.net