Category: Contract Manufacturing

  • Coastline International Celebrates 40th Anniversary

    Coastline International Celebrates 40th Anniversary

    We are excited to celebrate our 40th anniversary this year for manufacturing in Mexico!  Here is the press release posted to share the story.  We are looking forward to many more years ahead!

     

    SAN DIEGO (April 2022) — 2022 marks the 40th anniversary that Coastline International has been providing manufacturing services for leading companies worldwide. Established in 1982, Coastline has a long history of working with top OEMs to provide superb customer service and manufacturing partnership through their Tijuana, Mexico based facilities. Coastline has gained a reputation for their quality and service throughout the past 40 years of becoming experts in nearshore manufacturing

    Why Contract Manufacturing in Mexico? 

    While Coastline’s manufacturing operations are strategically located on the Tijuana side of the US-Mexico border, Coastline International is a US-owned and managed company and all corporate operations are based out of San Diego, California. Since its inception in 1982, Coastline has operated the same maquiladora business model which encompasses the management of all manufacturing services and import-export activities for their customers to allow for seamless access to their highly skilled and competitive labor workforce in Mexico. 

    In the early 1980’s and 1990’s era, Coastline was primarily concentrated on electronics and industrial applications. Core competencies focused on printed circuit boards (PCBA), soldering, potting, wire harnesses, box builds, manual packaging, assembly of aerospace rivets & fasteners, and power supply & battery pack assembly. Coastline capabilities have historically aligned with industry demands, and in the late 1990’s, the requirements of the medical device industry found their way to Coastline Mexico facilities. As the manufacturing and assembly processes for many medical products were and continue to be quite labor intensive, it was made very clear that the manufacturing infrastructure in the Tijuana region was a great fit to support the emerging market. With Coastline’s history of high-quality assembly work, it was a natural transition to embrace new medical companies as customers. 

    Coastline International’s Evolution Over the Years 

    Over the years as the opportunities grew, Coastline continued to evolve and adapt to the industry requirements. In the early 2000’s, Coastline obtained ISO certification and to this day the Quality Management System remains current on both ISO 9001 and ISO 13485 revisions. The Coastline facilities in Mexico have built a robust staff and experienced management team which has continued to grow along with the development of their customer base. In 2018, Coastline obtained a new 20,000 sq. ft. building and invested in the build-out of an additional Class 8 (Class 100,000) cleanroom production space. The Tijuana facilities currently comprise a total of three buildings which include four cleanrooms and multiple production floors & warehouses across the 50,000 sq. ft. campus – all of which is in the same secure gated industrial park approximately 10 miles from the San Diego border.

    Throughout the past 40 years, the focus on manual assembly has been a common denominator across the vast portfolio of products manufactured at Coastline. As Coastline has adopted new customers in thriving industries, legacy production also certainly remains from many long-standing customers, some of which have been engaged for more than 20 years. Although labor-driven processes continue to remain a core proficiency, Coastline has also embraced significant equipment-reliant manufacturing capabilities such as ultrasonic welding, RF welding, UV curing, die-cutting, sterile-barrier sealing, in addition to automated processes such as form-fill-seal (FFS) packaging. 

    Coastline’s customer base covers a wide spectrum of companies across industries which include Fortune-500 companies, late-stage start-ups, and many organizations in between. All of Coastline’s customers either have a long history of successful products or have created traction in the marketplace with new innovation. In order to support their growth, it has been essential for these OEMs to identify a strategic manufacturing partner to help reduce costs and also provide the capacity to scale production for the growing demand. By working with Coastline, these companies have been able to rely on the Tijuana site for scalable production – consequently, they can focus on product development, innovation, sales & marketing, and all of the other critical aspects related to the demands of a successful modern company. 

    The management team at Coastline has committed to creating a culture of integrity within the organization. As a result, Coastline has been fortunate to maintain turnover levels considerably below the regional and industry averages. Coastline has also found great success through focusing on employee development and internal promotion in order to create opportunities for current personnel. Many of Coastline’s employees have been with the organization in excess of 10-20 years, some even passed the 30-year mark. Over the years, hundreds of jobs have been created by way of Coastline’s manufacturing operation in Tijuana and the future is looking bright with continued growth ahead. 

    In conjunction with a passion for their employees, the other element fundamental to their success has been the dedication to service for their customers. Coastline has been recognized for their service offering which includes management presence from the USA on-site; this “boots on the ground” approach of US-management representation embraces the partner mentality and creates a direct line of communication to the manufacturing site. Coastline has countless times been able to witness firsthand the lifecycle of products ramping from early design-phase all the way to steady-state high volume production lines. The accomplishment of their customers is vital to Coastline’s success, as the mutually beneficial relationship is based on reciprocity and the spirit of partnership. Coastline’s goal is to truly operate as a “Tijuana-based extension” of their customers.

    A Bright Path Forward 

    As 2022 will make 40 years of manufacturing in Mexico for Coastline International, the organization is committed to many more positive years ahead. The leadership team is very excited about Mexico’s position — Tijuana in particular — in the current global landscape for contract manufacturing. In addition to facility investments, Coastline has continued to invest in its staff to build and maintain the necessary foundation for further steady growth and an exciting future to come. 

    To learn more about Coastline or contact for manufacturing inquiries, please contact Brett South at: info@coastlineintl.com

  • What Is A Maquiladora?

    What Is A Maquiladora?

    What is the benefit of using a maquiladora for your contract manufacturing needs? There are many if you’re considering bringing production elements for your company to Mexico, or simply thinking about expanding your manufacturing capabilities in Mexico. Many foreign companies are attracted to Mexico because of the cost effective labor costs and the ease of manufacturing capabilities overall.

    What is a Maquiladora?

    Let’s start with taking a look at exactly what a maquiladora is.

    Simply stated, a maquiladora is a foreign-run company exporting goods to other countries. While the company’s administrative or corporate facility is located in the U.S., manufacturing plants are located in Mexico.

    In Mexico, the maquiladora program began in 1964, designed 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 the maquiladora model, due to benefits in labor, tax, and the importation of both duty and tariff-free raw materials. Finished manufactured products can be exported to the manufacturer’s country of ownership.

    The system works with Mexico-based management and facilities conducting daily manufacturing operations, with the foreign company owner controlling the manufacturing expertise and production operation, as well as long-term planning.

    Maquiladoras are beneficial for foreign companies due to:

    • Production flexibility
    • Fast, efficient operation start-up
    • Operations cost and tax benefits
    • Access to large and qualified labor pool

    Where Can Maquiladoras Be Located?

    Basically, a maquiladora location can be anywhere in Mexico as long as the produced products are sold outside Mexico itself. Tijuana is a popular location due to its proximity to the U.S. border, success as an import/export hub, and established providers.

    It’s easy to access a maquiladora through working with a contract manufacturer, of which can provide services such as:

    • On-site management of manufacturing processes
    • Hiring and human resources
    • Administering payroll and benefits
    • Managing imports and exports
    • Managing customs
    • Management of freight and logistics
    • Handling tax issues
    • Overseeing environmental and occupational standards of health and safety
    • Taking care of purchasing negotiations
    • Facilitating vendor relationships
    • Managing facilities, leases, and equipment

    Some providers of contract manufacturing and shelter services offer a full community for foreign companies, such as an industrial park location that includes the leasing of a building among other services.

    Maquiladora Cost Benefits and Tax Incentives

    Among the many benefits for maquiladoras are the low shipping costs, duty-free production materials and reduced labor costs. They also allow simple compliance with local regulations and provide many benefits in regard to taxes, including corporate income tax, payroll tax, and VAT tax.

    Working with a services provider is one of the easiest, simplest ways to take advantage of the many benefits offered by the maquiladora program, and Coastline International can help. While Coastline International is based in San Diego, California, all manufacturing operations are performed at their Tijuana, Mexico (maquiladora) facilities.

    We have comprehensive, cost-effective methods that can assist you with effective manufacturing under a maquiladora.

    Learn More About Mexico Contract Manufacturing at Coastline International

    If you’re ready to learn more about contract manufacturing in Tijuana, or get started with a maquiladora program, 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 as well.

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

  • 5 Advantages to Manufacturing in Mexico vs. China

    5 Advantages to Manufacturing in Mexico vs. China

    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.

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

  • Guide to Choosing Your Next Contract Manufacturer

    Guide to Choosing Your Next Contract Manufacturer

    When a business hires another company to produce either component parts or manufacturing and assembly of finished products, this is known as contract manufacturing. This allows the business to avoid the responsibility of establishing or maintaining a manufacturing facility and by relying on a strategic partner, the OEM can get the product on the market at a much faster, more affordable rate.

    Based on a few key things to look for you can get an idea of the best contract manufacturer for your business. 

    The Ability and Expertise to Handle Your Product

    Not every contract manufacturer will offer the skills, tools, and services required to produce every product. Take a look at what yours requires and then find a company that has the expertise to match.

    Do your research to find those that specialize in your area. For instance, if you are looking to have a medical device produced, seek out a contract manufacturer that is ISO 13485 certified, registered with the FDA, and known for producing items for hospitals and others in the industry. While one manufacturer may technically be able to handle your product, look for the expertise and the industries they are involved with, including companies they are already supporting.

    Of course, you may want to keep an eye out for any certifications or equipment that may be needed to get the job done, too. 

    The Available Capacity to Take On Your Work

    The last thing you want to do is hire a contract manufacturer and find yourself dealing with delay after delay. If they do not have the capacity to handle your work, then you want to find someone who does. Will your needs be addressed? Will your product be a priority? Do they have the ability to handle the additional workload? 

    These are all important and legitimate questions. Regular production needs to be something you can rely on to keep an adequate flow of your product moving through the supply chain. 

    Equipped with the Right Technology

    The contract manufacturer that you hire needs to give you confidence that they can handle your project. Depending on your product, this may require certain skill sets or technological equipment. Ultimately, if you want your project done right, you will need to make sure the manufacturer is equipped to handle it. 

    Enough Employees to Keep Production Flowing

    A contract manufacturer may have all the best equipment and technology, but without the workforce, the rest is useless. Manufacturing relies on the employees to make it happen. This is an important factor to consider when choosing your manufacturer.

    Do they have enough employees? Does management seem to lead well? Are the floor workers well trained? Does everyone seem communicative and easy to get along with? 

    These are all important questions to seek answers to. 

    Location is Very Important

    The location of your contract manufacturer is very important. Choosing to go offshore, for example, may look good due to its lower costs, but logistically, it is not as feasible. Not to mention the amount of time it takes to ship and receive. This can be very costly and damaging to your supply chain. 

    Opting for a nearshore manufacturer can give you the benefits of the cheaper production costs without the hefty shipping costs and delays. Places in Mexico, for example, that are incredibly close to the U.S. give you the best of both worlds. 

    Learn More About Contract Manufacturing with Coastline International

    There is a lot that goes into choosing your next contract manufacturer. 

    If you are ready to learn more about contract manufacturing or you are ready to choose your next contact manufacturer, contact Coastline International at 888-748-7177 or contact us online. Our knowledgeable representatives are waiting to help you. 

  • Contract Manufacturing in Mexico – 3 Things You Should Know

    Contract Manufacturing in Mexico – 3 Things You Should Know

    Outsourcing manufacturing to Mexico has a number of benefits for any business. In Mexico manufacturing can be performed at a lower cost without sacrificing quality or efficiency. Better still, the logistics of transporting raw materials to Mexico and finished products to their destination markets are much easier than those involved with manufacturing in Asian countries. Here’s what you should know.  (more…)