Category: Contract Manufacturing

Selecting the right partner for contract manufacturing is one of the most important decisions an OEM can make. Production quality, operational efficiency, and long term scalability depend heavily on the manufacturer’s ability to meet technical requirements and deliver consistent performance. As industries continue to advance and expectations for speed and precision increase, OEMs benefit from using a clear evaluation framework to compare potential partners. A strong manufacturing partner can help an OEM reduce costs, improve product quality, and streamline development cycles. A poor fit can result in delays, supply interruptions, or compliance issues that place projects at risk.

With rising competition and global supply chain challenges, OEMs need to choose partners that offer stability and expertise along with efficient communication and dependable support. Whether an organization is evaluating a manufacturer for the first time or reassessing existing partnerships, understanding how to analyze core capabilities helps ensure better outcomes. When approached thoughtfully, contract manufacturing becomes a strategic business advantage rather than a simple cost driven decision.

Assess Technical Capabilities and Production Expertise

Technical capability forms the foundation of contract manufacturing success. OEMs should begin by reviewing the materials, processes, and technologies a manufacturer uses. This includes understanding the precision of their equipment, their capacity for complex assemblies, and their ability to produce at various volume levels. Manufacturers that operate modern facilities with updated equipment often demonstrate stronger process control and more efficient production flow.

OEMs should also evaluate the experience of the manufacturer’s team. Skilled engineers, technicians, and quality personnel contribute directly to product performance. A manufacturer with extensive experience in medical devices, electronics, or other regulated sectors can provide valuable insight into process improvements and design considerations. This level of experience helps reduce development time and supports more reliable outcomes.

Reviewing case studies or project examples can also provide clarity. If a manufacturer has successfully handled projects similar to yours, they are more likely to meet your expectations. Some OEMs conduct technical audits or facility tours to see operations firsthand. This helps identify strengths, potential limitations, and areas where collaboration may be especially beneficial. A strong manufacturing partner should welcome technical discussions and be able to explain how their processes support product quality, repeatability, and efficiency.

Review Quality Control Systems and Regulatory Compliance

Quality control is a defining factor in contract manufacturing. OEMs rely on their manufacturing partners to maintain the highest level of consistency across every production run. A strong quality system includes documented procedures, standardized inspections, and continuous monitoring to catch and correct issues early.  Different industries, such as medical devices and electronics have various quality standards to be met.  It is critical to confirm required certification with international standards, such as ISO 13485, ISO 9001, and FDA registered and compliant facilities.

A manufacturer’s quality culture matters as well. OEMs should look for partners that emphasize training, continuous improvement, and accountability. These practices contribute to better product integrity and fewer production errors. Manufacturers that conduct internal audits and track key performance indicators often demonstrate a proactive approach to quality management.

Regulatory compliance is another essential element. OEMs must ensure that the manufacturer meets all requirements relevant to their industry, such as regulatory guidelines for medical devices or specific standards for electrical components. Verifying certifications provides confidence that the manufacturer follows established procedures and understands the importance of compliance in daily operations. This support not only protects the OEM’s products but also helps maintain customer trust and brand reputation.

Evaluate Communication, Logistics, and Scalability

Effective communication plays a major role in contract manufacturing. OEMs need partners who provide timely updates, accurate documentation, and a willingness to collaborate during development and production. Strong communication helps prevent misunderstandings, ensures alignment on timelines, and allows teams to respond quickly when adjustments are required.

OEMs should assess how quickly the manufacturer responds to inquiries, how clearly they present information, and how willing they are to engage in planning discussions. A partner that communicates well helps reduce production risks and supports a more seamless workflow.

Logistics are equally important. OEMs should understand how the manufacturer manages supply chains, inventory levels, and shipment schedules. Manufacturers with reliable supplier relationships and effective inventory management can reduce delays and provide more predictable delivery timelines. This reliability is especially important for OEMs with sensitive production cycles or high volume demands.

Scalability should also be a major consideration. As an OEM grows, its manufacturing needs may increase. A strong manufacturer can expand production capacity, support product line extensions, and adapt to new requirements. Many OEMs choose experienced teams like those at Coastline International because they offer stable, long term support along with flexibility to accommodate changing needs. Confirming scalability early helps ensure that your manufacturing partner can support your goals both now and in the future.

Analyze Total Cost Beyond the Quoted Price

Many OEMs evaluate manufacturers primarily by their quoted unit price, but total cost is far more complex. A manufacturer with a higher initial quote may offer stronger quality control, improved efficiency, or reduced error rates that ultimately provide better long term value.

OEMs should evaluate the cost of rework, delays, scrap, and potential compliance issues. These factors can significantly exceed the savings from a lower quote. A reliable manufacturer with strong processes can reduce these hidden costs and support a smoother supply chain. Transparent pricing and detailed estimates help OEMs make more informed decisions.

OEMs should also consider ongoing costs related to shipping, communication, engineering changes, and supply chain stability.  International trade may have implications related to duties, tariffs, and trade agreements which are frequently changing.  Understanding free trade agreements, such as USMCA in North America, can help navigate tariff-free manufacturing between the USA and Mexico for example.  A manufacturer that offers strong support, efficient processes, and consistent quality can create measurable cost savings across the entire product lifecycle.

Consider Cultural Fit and Long Term Partnership Potential

The most successful manufacturing relationships function as collaborative partnerships. OEMs should seek manufacturers that share their values related to quality, communication, and continuous improvement. A cultural fit improves working relationships, reduces conflict, and encourages open problem solving.

A strong cultural fit also supports long term success. Manufacturers that invest in their customer relationships often demonstrate greater reliability and commitment. They become familiar with the OEM’s products, processes, and expectations, which leads to more efficient projects and faster responses to future needs.

Evaluating cultural fit includes assessing leadership styles, communication preferences, and the manufacturer’s willingness to adapt to your requirements. This level of alignment helps create a strong foundation for sustainable collaboration.

Final Thoughts on Choosing the Right Contract Manufacturing Partner

Choosing the right partner for contract manufacturing begins with a structured and thoughtful evaluation. OEMs who take the time to analyze technical capabilities, quality systems, communication habits, logistics performance, cost factors, and cultural fit are better prepared to select a partner that supports reliable production and long term growth. With careful selection, contract manufacturing becomes a powerful tool that improves efficiency, enhances product quality, and helps organizations scale with confidence.

Frequently Asked Questions About Contract Manufacturing

What industries use contract manufacturing?

Contract manufacturing supports a wide range of industries including medical devices, electronics, consumer products, and industrial equipment. OEMs often rely on contract manufacturers to increase production efficiency and reduce in house operational requirements.

How can OEMs ensure quality when outsourcing production?

OEMs can ensure quality by choosing a manufacturer with strong quality control systems, documented processes, and proven experience. Regular communication, clear product specifications, and performance monitoring also help maintain consistent results.

We support OEMs with reliable manufacturing solutions built on quality, communication, and long term partnership. Our team at Coastline International is committed to delivering precision, consistency, and trusted support at every stage. Contact us today to learn more about how we can help.

Managing your supply chain and logistics effectively is fundamental to the success of contract manufacturing in Mexico. With Mexico’s proximity to the U.S., competitive labor costs, and robust trade agreements, many businesses are leveraging the country’s advantages to streamline operations and reduce costs. However, navigating supply chain complexities requires thoughtful planning and a trusted partner.

Coastline International, a leader in contract manufacturing in Mexico, has helped businesses improve their supply chain processes since 1982. From medical devices to electronics, our expertise ensures high-quality production with optimized logistics, enabling your business to focus on growth.

Optimizing Transportation and Lead Times

One of the biggest logistical advantages of manufacturing in Mexico is its proximity to the United States. With production facilities neighboring the U.S. border, businesses enjoy significantly reduced transportation times compared to offshore alternatives, such as China, Southeast Asia, or even Costa Rica. This shorter distance results in quicker delivery, lower freight costs, and better responsiveness to fluctuating demand.

At Coastline International, efficient logistics systems ensure seamless transportation of goods. By leveraging Mexico’s well-developed highway and railway networks, as well as efficient customs processes at border crossings, we help you minimize delays and maintain predictable delivery schedules.

Additionally, Mexico’s strategic location facilitates quick access to global shipping routes for businesses targeting broader markets in Europe, South America, or Asia. These logistical efficiencies make contract manufacturing in Mexico an ideal solution for companies seeking agility in an increasingly globalized market.

Streamlining Procurement and Inventory Management

With supply chain operations integrated into Mexican facilities, businesses can benefit from streamlined procurement and inventory management processes. Coastline International can manage customer-consigned inventory and also offers turnkey solutions that manage the sourcing of raw materials, alternate supplier recommendations, and import/export regulations. These services reduce operational complexity for our clients, allowing them to focus on core competencies, such as design and innovation.

By housing production and inventory management closer to the U.S. market, companies can adopt just-in-time (JIT) inventory strategies. This approach minimizes excess inventory while ensuring a reliable supply of components and finished goods. The result? Lower storage costs, reduced waste, and greater efficiency across supply chain operations.

Our expertise in navigating international trade requirements further supports our clients in maintaining an uninterrupted flow of goods. Leveraging agreements such as the United States-Mexico-Canada Agreement (USMCA), we ensure compliance with tariff-free or reduced-tariff trade practices, helping you lower production costs and achieve a competitive edge.

A Reliable Partner for Supply Chain Success

Partnering with an experienced manufacturer like Coastline International can significantly ease the challenges of supply chain management. With over 40 years of expertise in contract manufacturing, our Tijuana facilities are uniquely equipped to help you optimize your logistics and production processes. From Class 8 cleanrooms for medical devices to comprehensive procurement support, our solutions are tailored to meet your business needs.

The success of supply chain management in contract manufacturing requires a trusted partner who prioritizes quality, efficiency, and transparency. Coastline International’s extensive experience, certifications (ISO 13485 and ISO 9001), and dedication to client satisfaction make us a preferred choice for businesses looking to expand into Mexico.

Frequently Asked Questions About Contract Manufacturing

What benefits does contract manufacturing in Mexico offer for supply chain management?

Contract manufacturing in Mexico provides numerous benefits for supply chain management, including reduced lead times due to Mexico’s proximity to the United States. Other advantages include lower transportation costs, streamlined cross-border logistics, and access to skilled labor at competitive rates. Additionally, Mexico’s established trade agreements, such as the USMCA, enable businesses to benefit from cost savings on imports and exports.

How does Coastline International help optimize logistics for clients?

Coastline International offers end-to-end supply chain and logistics solutions, including procurement and inventory management, import/export coordination, and turnkey transportation services. Our facilities in Tijuana are strategically located near the U.S. border, ensuring faster lead times and lower shipping costs while maintaining high manufacturing standards and compliance with regulations.

Coastline International specializes in contract manufacturing solutions for medical devices and electronics, providing clients with access to world-class facilities in Tijuana, Mexico. Call us at 888-748-7177 or contact us online to learn how we can help streamline your supply chain while delivering unmatched quality and reliability.

If you’re looking for a company to manufacture products for your business or organization, you might contract with a manufacturing partner in Tijuana, Mexico. Doing so is a particularly wise option for American companies due to such benefits as:

• Keeping manufacturing close to home while still saving on labor costs
• Increasing capacity quickly to scale manufacturing
• Improving your ability to get your products to market in a timely manner
• Allowing you to more closely monitor manufacturing processes
• Giving you the freedom to respond to changes in demand with greater efficiency
• Access to highly trained workforce and US-grade facilities

Those are just a few reasons contracting with a manufacturer in Tijuana is an option worth strongly considering. Keep the following tips in mind when searching for a manufacturer to find the right partner for your goals:

Know What You’re Manufacturing

Not all manufacturers are equipped to serve your needs. For example, perhaps you need a partner who can assist you with the manufacturing of specialty items, like medical products or electronics.

It is important to identify manufacturers with the facilities and certifications necessary to serve your needs. Make sure to prioritize your pertinent criteria, i.e., ISO 9001, ISO 13485, FDA registered, etc.

Obviously, you should narrow down your list of potential manufacturers to those who can produce the items you need manufactured. However, it’s also important to consider how your manufacturing needs may change and grow as your company grows.

Don’t just find a manufacturer who can help you now. Find one who can remain a trusted partner for years to come.  Many contract manufacturing programs are established to last for many years once transferred. The relationship with the right partner is critical.

Set a Budget

Practical factors like your budget will influence the process to evaluate and identify a manufacturer in Tijuana, Mexico. It is important to have an understanding of your target pricing in order to determine if the manufacturer can meet your goals.

It is also important to understand the potential long-term costs of contracting with the “cheapest” manufacturer you can find; these options may come with both inferior quality and service. In the long run, the consequences of choosing the wrong manufacturer to contract with can be disastrous for your company.

Remember before entering into a contract to find the ideal balance between contracting with a partner who can meet your cost targets and also provide reliability and quality over time.

Learn About Import/Export Management

Knowing a manufacturer can produce the items you need is critical. That said, it’s also very important to understand the extent to which a manufacturer will assist you with the process of exporting and importing goods when necessary.

Check the Basics

There are some basic steps you can take when entering into virtually any type of contract with virtually any business offering a service. Taking these steps can help you better evaluate whether a manufacturer is capable of handling your project. They include the following:

• Check how long a manufacturer has been in business. If they’ve been serving clients like yourself for decades, odds are they do right by their clients.
• Ask if a manufacturer can provide testimonials from former clients who’ve been satisfied with their services. They should be eager to provide this information if it’s available.
• Confirm a manufacturer has all necessary insurance policies, licenses, etc.

Make sure to create a contract or Master Service Agreement that covers all of your most important criteria. By keeping these tips in mind and thoroughly vetting your options, you’ll find that choosing the right Tijuana manufacturer for your project is easier than you may have expected.

Get in Touch With a Tijuana Manufacturing Partner Today

At Coastline International, headquartered in San Diego, we have offered Tijuana-based manufacturing solutions to clients across a range of industries for over 40 years. Learn more about what we can do for you by contacting us online today.

If you need to manufacture items or products but lack the means of doing so, you could hire a contract manufacturer. They can handle your manufacturing project using their own facilities.

You may wonder how much contract manufacturers charge for their services. There’s no universal answer to this question. As the following overview explains, many factors can influence the cost of a contract manufacturing project.

What is a Contract Manufacturer?

A company that offers certain products may not always have the resources necessary to manufacture those products. Or, they might be unable to manufacture the parts they need. In these circumstances, they may enter into an agreement with a contract manufacturer.

Contract manufacturers work with clients as third parties. The scope of work for a contract manufacturing job can vary depending on a client’s needs and a manufacturer’s capabilities.

For example, a contract manufacturer offering electronics manufacturing services may handle such tasks as soldering, potting, manual assembly, and more. A contract manufacturer handling a medical device manufacturing project will be well-versed with technical processes and quality controls and abide by applicable regulatory certifications.

That’s an important point. Not all contract manufacturers are qualified for all projects. Be sure to choose one with the experience and facilities necessary to serve your needs.

What Factors Affect the Cost of Contract Manufacturing?

How much a contract manufacturer charges for their services may vary depending on a range of factors. Noteworthy examples include:

• The volume of products the client needs a partner to manufacture
• The types of materials the project will require
• Whether a project requires any special capabilities
• Labor costs
• The proposed timeline for the project
• Whether a client needs a contract manufacturer to manufacture a complete product, assemble a product, or manufacture individual components
• Whether any laws or regulations apply to the types of products a client needs
• Shipping costs

Thoroughly vetting your options when hiring a contract manufacturer is essential. Although you may be tempted to hire the “cheapest” manufacturer, doing so might not be the smartest financial move in the long run.

A reputable contract manufacturer with experience handling projects like yours is more likely to provide quality service and products than a bargain manufacturer. Rather than trying to reduce costs by hiring an unqualified partner, save more by hiring a partner who will complete the project right the first time.

Hiring a Contract Manufacturer Can Be a Smart Financial Move

It’s impossible to say what your contract manufacturing project may cost without knowing the details of the project. For more information, get in touch with a contract manufacturer for a quote.

That said, hiring a reputable contract manufacturer instead of attempting to address your company’s manufacturing needs yourself is typically a wise financial decision. Reasons why include:

• You won’t have to hire extra labor or purchase new facilities
• You can easily scale your manufacturing
• You’ll have assistance from professionals who already understand how to streamline supply chains and logistics

Hiring a contract manufacturer also gives you more time to focus on other aspects of running your company. When a third party handles your manufacturing work, you can devote more attention to offering your customers quality service.

Learn More About Contract Manufacturing in Mexico

At Coastline International, operating manufacturing facilities in Mexico, we’d be happy to discuss the potential cost of your project and how we can save you money. Get started today by contacting us online.

If you are looking to scale up your manufacturing program, then you are potentially going to need to find a contract manufacturer and establish a manufacturing contract. This will give you the opportunity to hire another company to produce your products. 

But while it may allow you to have a competitive advantage regardless of your current funds or resources, you first need to know how to get a manufacturing contract. 

What is a Manufacturing Contract? 

A manufacturing contract is an agreement a company has with another to have either component parts or complete products manufactured on your behalf. This means outsourcing the manufacturing portion of your business. 

While this can level the playing field amongst competitors from all angles, those who seek out nearshore contract manufacturing seem to gain the biggest reward. 

How Do You Get a Manufacturing Contract? 

Manufacturers that handle outsourcing, including those in Mexico, receive requests from many different businesses throughout the U.S. and around the world. They do not agree to contract with everyone. So, how do you get a manufacturing contract?  

The most critical detail is finding the appropriate manufacturing supplier to partner with.  Many suppliers offer a wide range of services and capabilities and work with a broad scope of companies.  It is crucial to find the partner that is well-aligned to establish the relationship.  Your contract manufacturer is an extension of your organization, so a good fit is of utmost importance.  

The Advantages of a Manufacturing Contract

There are many advantages of having a manufacturing contract — especially when it comes to quality, capacity, and growth of your business. If you have thought about getting a manufacturing contract for nearshoring in Tijuana, take the leap. It will have a positive impact on your business. 

• An Experienced, High-Quality Labor Force. When you have a manufacturing contract, you are able to gain access to an experienced and high-quality labor force. Regardless of the size of your company, you can rest assured they will be able to manufacture your goods according to your specifications using quality techniques, tools, and parts. 
• Cost-Effective Manufacturing. Not only do you get the benefit of the labor force, you will have access to geographic regions that offer very competitive labor rates. This makes it a cost-effective business decision. 
• Greater Access to Resources. There is a lot involved in manufacturing. Not only does your product design have to be fulfilled but it needs to be inspected, tested, manufactured, shipped, and more. Having a manufacturing contract links you with the resources to get all of this done while having commitments to quality and on-time delivery.  
• A Faster Route to Market. Of course, because of all the aforementioned resources, you can feel confident that your product is making it to market at the most efficient rate. This gives you the best opportunity to get your product to the market ahead of the competition. 
• Meet the Demand. Demand can rise and fall – and making changes on your own as they are needed can be challenging. Working with a flexible and highly experienced nearshore manufacturing team in Mexico makes it easy to make changes to production so that you can always meet demand. 
• Focus Your Efforts Elsewhere. Finally, when you have a solid contract manufacturing partner, you can focus your business efforts elsewhere – such as design development, innovation, and sales & marketing. 

Contract Manufacturing with Coastline International

Coastline International has been a trusted nearshore manufacturing partner for over four decades. To learn how we may help you with your medical, electronics, aerospace, and consumer goods manufacturing, contact us today at 888-748-7177. Or, send us a message.

With its close proximity to the US, competitive labor costs, and free trade agreements, Mexico has become an increasingly popular manufacturing hub for companies looking to streamline operations. Partnering with a contract manufacturer in Mexico can provide numerous benefits, from reducing production costs to tapping into specialized expertise and infrastructure.

However, finding and collaborating with the right partner requires careful planning and execution. There are strategic steps you need to take to ensure you select a reliable manufacturer aligned with your business needs and set the partnership up for success.

The manufacturing industry in Mexico

Mexico has become a major global manufacturing hub across industries like automotive, aerospace, electronics, medical devices, and consumer goods.

The automotive industry, in particular, has a strong presence with many major auto makers operating production facilities leveraging Mexico’s skilled labor, trade agreements, and US proximity. The government has implemented policies to attract foreign investment, including incentives like tax breaks, duty-free machinery imports, and free trade agreements.

These factors have positioned Mexico as an appealing manufacturing destination for global businesses. By taking time to understand the competitive advantages of manufacturing in Mexico and key thriving industries, companies can better evaluate potential partners and ensure a strategic fit.

Analyzing the manufacturing landscape will lead to smarter decisions when selecting a contract manufacturer and increase the chances of establishing a mutually beneficial long-term relationship. The more informed a business is before engagement, the higher likelihood of successful outsourced manufacturing in Mexico.

Steps to engage with a contract manufacturer in Mexico

Engaging with a contract manufacturer in Mexico requires strategic planning and continuous management. Follow these key steps for an effective partnership:

Establish Clear Communication Channels

Define expectations, requirements, and specifications in writing

Appoint a main point of contact to communicate with the manufacturer

Maintain open channels for questions, updates, and feedback

Understand the Manufacturing Process

Research the manufacturer’s capabilities, expertise, timelines

Get insight into equipment, technologies, stages of production

Align expectations for production scheduling and lead times

Implement Rigorous Quality Control

Collaborate to establish quality protocols and acceptance criteria

Conduct regular audits and inspections of facilities and products

Define procedures for addressing any quality issues promptly

Build a Long-Term Relationship

Make site visits to strengthen rapport with the manufacturer’s team

Explore opportunities for process improvements and innovation together

Provide accurate forecasts and timely payments to be a reliable partner

By investing in strategic planning, communication, quality control, and relationship building, businesses can minimize risks and build successful outsourcing partnerships in Mexico.

CONTRACT MANUFACTURING IN MEXICO

Partnering with a contract manufacturer in Mexico can provide significant advantages, but requires diligent execution.

By establishing open communication channels, deepening your knowledge of manufacturing processes, implementing rigorous quality control, and cultivating a collaborative long-term relationship, you can set your outsourcing engagement up for success.

With strategic planning and proactive management, you can effectively navigate the complexities of outsourced manufacturing in Mexico and capitalize on the many benefits, from cost savings to skilled labor.

For any questions regarding contract manufacturing services in Mexico or to receive a quotation, please contact us.

Deciding to pursue a global contract manufacturing agreement is not a decision that manufacturers should take lightly. While there are inherent risks in manufacturing anywhere,  those risks are multiplied exponentially when you send your manufacturing across the globe. So, what are the biggest risks in global contract manufacturing? Here’s a look at seven of the top risks U.S. manufacturers assume when shipping manufacturing around the world

Quality Control

There’s a reason so many companies outsource their manufacturing overseas. It is less expensive than manufacturing in the U.S. However, you have far less control over the quality of your product, when you’re thousands of miles away. This lack of oversight can and often does lead to subpar products. 

Supply Chain and Logistics Challenges

The COVID-19 pandemic showcased the risks of global contract manufacturing in a way we’d never seen. As factories and facilities shut down and cargo ships sat in ports for weeks, the supply chain came apart at the seams. No matter the size or stature of a company, its products were not immune from delays in product delivery. Though many problems in the supply chain have since been resolved, the potential for future disruptions is now a serious threat to be weighed. 

IP Theft

When you opt to outsource manufacturing to a country across the globe, your intellectual property is at increased risk of theft. Without any direct access or boots on the ground oversight to ensure that your designs, formulas, etc., are not counterfeited poses a greater challenge than if your manufacturing partner was closer.

Shortage of Labor

Lockdowns and shutdowns overseas have led to labor shortages across the globe. When entire regions are closed, your delivery dates and the quality of products manufactured overseas are jeopardized.

Locating the Right Factory or Facility

Selecting the right factory or facility for your manufacturing can also be time-consuming and expensive, due to travel expenses, accommodations, and time spent finding a facility that can produce your products.

Shipping Costs

With fuel prices continuing to drive up manufacturing costs worldwide, all items manufactured overseas will be subject to higher shipping costs, than items manufactured closer to home.

Time Zones/Communication

When you ship production across the globe, you’ll be at the mercy of a time zone that differs significantly from your own. Although this is often more of an inconvenience than a risk, it can pose a risk in an emergency, when your partner needs to speak with you immediately. Worse, it’s a full day’s travel to arrive at the facility if problems need to be resolved. 

Nearshore Manufacturing Solves Global Contract Manufacturing Risks

Due to the risks of manufacturing overseas, nearshore manufacturing continues to gain popularity. For example, manufacturing in Mexico is more efficient and reliable than ever. With premium-quality medical device and electronics manufacturing facilities available just miles from the U.S. border, Mexico has become a hub of production in recent years.  

Indeed, manufacturing in Mexico also eliminates shipping delays, reduces shipping costs, and allows for greater oversight and quality control, all the while still offering the incentives of reduced labor costs.

Learn More About Manufacturing in Mexico With Coastline International

Coastline International has been a trusted nearshore manufacturing partner since 1982. Headquartered in San Diego, California, Coastline is a privately owned U.S. corporation that specializes in nearshore Medical, Electronics, Aerospace, and Consumer Goods manufacturing in Tijuana,  Mexico. To learn more,  call 888-748-7177 or send us a message.

A contract manufacturer can offer many benefits if you are considering expanding your manufacturing capabilities. Many foreign companies are attracted to an expansion in Mexico because of the cost effective labor and the overall manufacturing capabilities that can enhance production and expand the business marketplace.

What Does Contract Manufacturing Do?

Contract manufacturing is essentially a manufacturing agreement with another company to make certain components or products for them for a specific time. It is basically a way to outsource through a business agreement involving the production of parts, components or entire products per a company’s specifications. These manufactured products may then be used by the company in its own manufacturing process.

While the company’s administrative or corporate facility is located in the U.S., manufacturing plants are located elsewhere, such as in Mexico.

In Mexico, contract manufacturing in 1964, as a program to enhance the economy overall and increase industry opportunities in the country. IMMEX, the Maquiladora, Manufacturing and Export Services Industry modernized the system in 2006.

Today, foreign-owned companies can benefit from contract manufacturing in Mexico due to strong benefits in labor, tax, and the importation of both duty and tariff-free raw materials. Once completed, the manufactured products can be exported to the manufacturer’s country of ownership.

How Does Contract Management Work?

Contract management works simply, with the Mexico-based management and facilities conducting a company’s daily manufacturing operations, while the foreign company owner controls the manufacturing expertise and production operation, and the company’s long-term planning.

How does this help companies? Through:

• Flexible production
• Quick and efficient operation start-up
• Cost and tax benefits
• Access to a large and skilled labor pool

Where Can a Contract Manufacturer Be Located?

One excellent choice is Mexico, where Tijuana manufacturing facilities are a popular location due to its geography, as it is situated close to the U.S. border. It’s a successful import/export hub, and has the capability to provide established manufacturing providers.

Contract manufacturers can offer:

• On-site manufacturing process management
• Hiring and human resources
• Administration of payroll and benefits
• Management of exports and imports
• Management of customs
• Management of freight and logistics
• Handling tax issues
• Providing oversight for environmental and occupational health and safety standards
• Handle purchasing negotiations
• Facilitate vendor relationships
• Manage facilities, leases, and equipment
• In some cases, provide building leasing

Some providers can offer a full community for foreign companies, such as an industrial park location. At a location such as that, building leasing is included for companies among other services.

Contract Manufacturing Cost Benefits and Tax Incentives

Using contract manufacturing can offer many additional benefits for companies, such as shipping costs at low rates, duty-free production materials and lower labor costs than in a company’s home country. This type of manufacturing also makes compliance with local regulations easier.

And, of course, there are many tax benefits with contract manufacturing. This includes:

• corporate income tax
• payroll tax
• VAT tax

For all of these reasons and more, working with a contract manufacturer is the best way to take advantage of a wide range of benefits, allowing companies to focus on innovation and new services while maintaining a high standard of production and meeting deadlines. Coastline International can help with your contract manufacturing needs. While the company is based in San Diego, California, all of Coastline’s manufacturing operations are conducted at their Tijuana, Mexico location.

Are You Ready to Learn More About Mexico Contract Manufacturing at Coastline International

If you’d like to find out more about contract manufacturing in Tijuana, or get started with this type of program, then Coastline International can help. We specialize in the nearshore manufacturing of medical devices and electronics and we also have skilled expertise in the aerospace and consumer goods sectors, too.

Call Coastline International at (888) 748-7177 or contact us online, today!