Nearshore manufacturing is the practice of expanding business operations to nearby shores with strategic partners in another, usually neighboring country (i.e., Mexico).
Providing significant advantages over offshore manufacturing nearshore operations allow mutually beneficial cooperation with foreign companies interested in working in the United States. If you are unsure if your company would benefit from outsourcing your manufacturing process, there are several key benefits you should be aware of.
Shipping is Faster and More Convenient
Offshore manufacturing used to be an inexpensive endeavor due to low labor rates in countries such as China. However, areas closer to the United States like Mexico have also lowered their labor rates in recent years, creating an agile workforce that benefits your shipping abilities as a company. Due to its proximity to your own business, a nearshore operation can provide you shipping that is fast, flexible, and inexpensive. Shipments that would normally take weeks or months to deliver can be turned into next-day or even same-day deliveries. Nearshore shipments are not limited to shipping containers, allowing you to use pallets or boxes when needed. No matter the timeframe or size of your orders you can have the confidence to perform at a professional standard.
Nearshore Operations Ensure a Quality Workforce
As nearshoring operations grow in popularity, so does the infrastructure that supports its growth. The number of high-performing, quality partnerships available steadily increases. This gives you access to a workforce invested in ensuring the success of your business. You can also monitor production and provide feedback in real-time, ensuring a workforce that can adapt to your needs. Countries like Mexico have developed a highly skilled workforce over the years, embracing quality management, training and sophistication to that of US standards including ISO 9001 and ISO 13485.
Communication and Travel are Improved
Traveling becomes a simple process with a nearshore partner. Avoiding the hassle of international flights and visas, a trip to your nearby facility can be achieved quickly and at little notice. This gives you the flexibility to adjust your shipments and solve issues precisely when you need to with a domestic flight and/or a short drive. Communication with partners within or close to your time zone avoids strain, confusion, and potential overnight delays. Scheduling and digital conferencing also become much more manageable improving coordination between your team members.
Trade Agreements Work in Your Favor
Due to several beneficial trade agreements, companies in the United States have access to significant cost savings. Some countries offer programs with unique benefits to nearshoring operations, like the Maquiladora program in Mexico that provides tax exemptions and reduced tariffs to neighboring manufacturers. Importation of raw materials is less restrictive and you can source goods directly through your partner, creating massive cost reductions to your benefit.
Your Intellectual Property is Better Protected
Unfortunately, the theft of intellectual property has become a large problem overseas. The violation of copyright law has produced many low-quality copies of successful products and saturated the marketplace. Many laws in local and neighboring countries specifically prevent the misuse of theft of intellectual property. Keeping your operations nearby with a trusted partner not only assures accountability but also a quality product that lives up to the standards of your company.
Learn About Nearshore Manufacturing From Coastline International
If you are interested in the nearshoring process or have questions regarding manufacturing in the United States and beyond, Coastline International can provide the solutions you need. We are a reliable manufacturer that has a record of consistently meeting high standards with quality service. Contact us at (888) 748-7177 to arrange a quotation today.