You are looking to outsource your manufacturing to save some money and help boost your production levels. You want a manufacturer that is already set up and ready to go with a well-organized and trained workforce. And, you want to be sure that in opting for this method you are, indeed, saving money. After all, that is the point of outsourcing your manufacturing in the first place.
China has long been the go-to country for low-cost manufacturing. Until now, when a new player is rising to the top – Mexico.
Here are 5 advantages to manufacturing in Mexico vs. China.
1. The Logistics
It doesn’t matter where you are in the U.S. there is no denying that Mexico is much closer than China. That means contracting with a manufacturer in Mexico can be much easier to handle logistically speaking.
Not only will you be able to communicate during business hours, but you can easily visit the facility and make it back to the office the same day. It’s close and convenient from a managerial standpoint. But, that’s not all.
When complete, you can get your finished products from point A to point B in a much faster, smoother method. There is no need for cargo ships and, if you need something in a rush, it can happen as quickly as the same day or the next day. From China, it could take 3 weeks before you receive them! This could be a serious dilemma if you find yourself needing something that is out in the middle of the ocean.
2. Qualified Labor Force
China’s labor force has been around for a while which means they are experienced. But that doesn’t mean they produce a high level of quality products. China’s labor force is aging and ailing while Mexico’s is fresh, highly-trained, and ready to work in the 21st century.
Quality labor leads to quality products.
When you have workers who are ready to handle the manufacturing of your goods – and the ability to pick up the phone during working hours to discuss any potential quality issues – you are going to have a healthier manufacturing experience all the way around. Additionally, the vast majority of Mexico manufacturers are held to the same universal, international quality standards such as, ISO 9001, ISO 13485, and FDA registration, etc.
3. Cost Savings
If you are interested in outsourcing your manufacturing, then cost savings are likely a big part of your decision. China has always had the lowest cost labor force, but now that torch has been passed to Mexico.
Not only will you save money using the labor force in Mexico, but shipping and transportation costs are much more affordable – and more efficient, too. Also take into consideration the many duties and tariffs imposed on components from Asia, which can have a significant impact on your bottom line. The newly revised USMCA is tax-advantageous for goods manufactured in Mexico, more on that to follow…
4. Free Trade Agreement
Staying on the subject of saving money, China and the U.S. have long been in a struggle of tariffs and import duties. And, very quickly, the costs of your outsourcing to China can go up. This is something you wouldn’t have to worry about with Mexico’s contract manufacturing.
The trade relationship between the U.S. and Mexico is strong thanks to the United States-Mexico-China Agreement (USMCA), a newer revision of the North American Free Trade Agreement (NAFTA). You can import and export goods tariff-free.
5. Intellectual Property Protection
Last, but certainly not least, is the protection of your intellectual property. When you send something out for manufacturing, you do so under the assumption that it is protected and will continue to be protected. Unfortunately, time and time again issues have been raised with China’s handling of this information – putting you at risk.
In Mexico, a legal framework is in place to protect your intellectual property. This means you can remain confident that your product’s information will be secure. Many maquiladoras in Mexico are owned and operated by US parent companies and as such, confidentiality agreements are executed with US-based management.
Learn More About Mexico Contract Manufacturing at Coastline International
If you are ready to learn more about why you should consider contract manufacturing in Tijuana, then Coastline International can help. We specialize in the nearshore manufacturing of medical devices and electronics with extensive experience in the aerospace and consumer goods sectors.