Why Manufacture In Mexico?

Why Manufacture In Mexico?

  • Competitive Advantage
  • Educated Labor Force
  • Lower Cost
  • Trade Agreements

Moving production to Mexico could be a strategic advantage for your business. Here’s why.

Competitive Advantage

Mexico is the eighth-largest manufacturing economy in the world and ranks seventh in the world according to Deloitte’s Competitiveness Index calculations. The skills of its employees in manufacturing and their willingness to work at a high level are becoming two of Mexico’s notable advantages over other developed countries. Reduced costs, improved skills, and improved employee attitudes combine to make manufacturers more productive and efficient, ultimately resulting in higher customer satisfaction.

Educated Labor Force

Mexico’s multi-layered education system bridges the gap between the knowledge gained in high school and the knowledge gained in university. Federally and state-funded schools such as Instituto Tecnologico (IT) and Universidad Tecnologica (UT) offer job-specific skills development and degrees similar to those offered in the US community college system.

Aside from improving educational literacy, Mexican workers have a positive attitude toward the manufacturing floor. Attitudes at work are often an innate trait of individual workers, but they are also strongly influenced by the motivational culture created by employers. This attitude stems from the competitiveness of Mexican workers and the management’s ability to create an environment that challenges workers and, where necessary, gives them the ingredients for success.

Lower Cost

In Mexico, the payroll tax for low-skilled factory workers is about 80% lower than the $12 an hour typically found in the US and other similar high-wage countries. Skilled machinists and welders cut employers’ costs by about 50%, and entry-level engineering jobs cut employers’ costs by 40%.

The automotive industry is one of Mexico’s fastest-growing manufacturing sectors, but other industries such as medical, electronics, aerospace, HVAC, and metalworking can be applied to highly technology-intensive manufacturing operations. Creating transferable workforce skills. The use of robotics, automation, Six Sigma, Lean, ISO, and other industry-specific quality standards is not common in Mexico alone. Many of the world’s leading manufacturing innovations come from factories in Mexico.

Trade Agreements

Most industries successfully manufacture in Mexico, thanks to the involvement of the Mexican government. First, Mexico is known for its aggressive trade agreements with the rest of the world. The USMCA (formerly known as NAFTA) is certainly Mexico’s best-known and most widely used trade agreement, but the country has over 44 other trade agreements in effect. increase. This makes it possible to build homes in Mexico and allows foreign companies to import raw materials and components tax-free and tax-free.