Coastline International is celebrating 40 years in business!

Learn More

Category: Nearshore Manufacturing

  • Nearshore Manufacturing: Is My Intellectual Property Safe?

    Nearshore Manufacturing: Is My Intellectual Property Safe?

    A nearshore contract manufacturer provides many benefits if you are considering expanding your manufacturing capabilities. Many foreign companies are attracted to a nearshore expansion in Mexico because of both cost effective labor and overall manufacturing capabilities which help to enhance production and the business marketplace.

    What Does Contract Manufacturing Do?

    Contract manufacturing is an agreement with another company to make certain parts or products for them for a specific period of time. It’s a way to outsource through a business agreement involving manufactured products or parts that can 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 nearshore elsewhere, such as in Mexico.

    Is My Intellectual Property Safe with Nearshore Manufacturing?

    While the safety of intellectual property is a concern for any foreign manufacturer, in Mexico, the short answer is this – intellectual property is safe. While laws and trade regulations differ between countries, and issues have arisen in China in the recent past, in Mexico, you will have proper protection.

    Here’s why: intellectual property protection for those manufacturing in Mexico has strengthened, particularly due to the increased commitments cited in the USMCA, the United States–Mexico–Canada Agreement for free trade. This security is important, because Industries with intellectual property to protect support approximately 38 percent of the U.S. gross domestic product.

    Mexico Enforces Intellectual Property Protection

    Along with the USMCA and other free trade agreements, Mexico enforces protection through government agencies including:

    • Mexico’s Office of the Attorney General which has a unit devoted entirely to prosecuting any intellectual property rights crimes
    • Instituto Mexicano de la Propiedad Industrial which handles patent and trademark registrations as well as administrative enforcement cases concerning intellectual property rights infringement.
    • Instituto Nacional del Derecho de Autor (INDAUTOR) – the National Institute of Copyright, this agency, responsible for copyright registrations and copyright disputes
    • Comisión Federal para la Protección contra Riesgos Sanitarios (COFEPRIS) – The Federal Commission for the Protection Against Sanitary Risks, which regulates medical devices, pharmaceuticals and processed foods.
    • Mexican Customs Service – which ensures illegal goods don’t cross Mexico’s borders

    While there are differences between these agencies and those similar in the U.S., a nearshore contract manufacturer such as Coastline understands and can handle the responsibilities of trade compliance, protecting foreign manufacturers operating within Mexico’s laws.

    Intellectual Property Protection with the USMCA

    This 2020 trade agreement between the United States, Mexico, and Canada updated regulations to provide what’s needed in today’s landscape. The USMCA covers several IP rights and enforcement required in each of these three countries.

    These include:

    • Copyright
    • Trademarks
    • Trade Secrets
    • How to ensure protection
    • How long each protection lasts

    While understanding the intellectual property rights in Mexico can seem complex, with the help of nearshore contract manufacturers like Coastline, companies can feel confident they are in compliance with the laws, and protected.

    Are You Ready to Learn More About Nearshore 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!

  • 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

  • Benefits of Manufacturing in Tijuana

    Benefits of Manufacturing in Tijuana

    Manufacturing in Tijuana has many benefits. From an affordable and trained workforce, to fast and competitive shipping options, to English-speaking engineers and management, manufacturers are finding that Tijuana is a location that allows a wide range of industries to thrive. 

    Proximity to the U.S.

    Mexico offers easy, quick, and affordable shipping to the United States. In fact, it can take less than a week to ship a container from Mexico to the U.S.  Next-day delivery on ground freight is also often possible. Tijuana’s geographic location also allows an excellent flow of low-cost raw materials as well as the transportation of manufactured goods. 

    Another important aspect of proximity is the fact that with a time zone that parallels that of the States, if questions should arise about the manufacturing process, it’s easy to connect by phone or video conference, or even make a visit to the factory location. Travel time to Tijuana from the western U.S. is no more than a few hours, and won’t exceed a day from anywhere in the United States, making a visit both quick and affordable.

    Trained and Affordable Workforce

    With wages far lower than in the U.S. but competitive in regard to the cost of living, workers in Mexico are eager to find steady manufacturing work.  Fortunately, the workforce is more than ready and capable to fill the job. The Tijuana labor pool is highly skilled, and easily trainable. Workers are also known for their reliability and interest in learning new skills in a culture that is renowned for work ethic.

    Training is eagerly embraced, and the time spent on training is well-spent. The manufacturing workforce in Tijuana is known for its efficiency and company loyalty. 

    And, because Tijuana is located near the U.S. border, most schools teach English as a second language to their students. In Tijuana, the region is called CaliBaja, comprising Baja California, as well as both Imperial and San Diego county in the U.S. The region’s partnerships with manufacturers have allowed for the creation of over 3.8 million jobs, which makes a win-win situation for workers and manufacturers alike.  

    Tijuana Has a Strong Supply Chain

    Having a reliable supply chain is important to acquire the materials necessary for virtually any manufacturing process. Mexico’s supply chain is simple and transparent. With excellent access to components and raw materials alike, Tijuana is one of the strongest links in a global supply chain. It is also very common to source materials from US-based suppliers for assembly in Mexico, as the border region is conveniently close and provides ease of import for manufacturing.  In addition, suppliers are flexible and reliable, resulting in the high quality and timely delivery you need to create products that are of equally excellent quality, on time, every time. 

    Tax Benefits

    Yet another benefit to manufacturing in Tijuana is that companies registered in the IMMEX and IVA programs receive excellent cost savings through the government programs that bolster them. Companies manufacturing in Tijuana Mexico can avoid the 16% value-added tax on the the products they create, as long as goods are exported with relative speed. And, along with these programs, manufacturers will find other benefits through USMCA when they are working with a Mexican contract manufacturer.

    Move Your Manufacturing with Coastline International

    If you’re ready to learn more about the benefits of manufacturing in Tijuana, then Coastline International is ready to assist you. Our company is highly skilled in all aspects of nearshore manufacturing for a wide variety of applications, including medical devices, electronics, and many others. The professional team members at Coastline have experience in industries from aerospace to medical and consumer goods along with many other industrial manufacturers. 

    Visit us at Coastline International or give us a call today at (888) 748-7177.

  • 5 Reasons to Consider Moving Manufacturing from Asia to Mexico

    5 Reasons to Consider Moving Manufacturing from Asia to Mexico

    For years, everyone looking for great rates on manufacturing would look to China and other Asian countries, and for a while, it worked. There were more affordable labor costs overseas which meant that the manufacturing production costs could drop – and as a result increase overall profits. Offshoring just made good business sense.

    As time has moved on, Mexico has made its way into the playing field – and has made nearshoring the go-to solution. But what is it about Mexico that makes it so enticing? Here are 5 reasons to consider moving your manufacturing from Asia to Mexico.

    Reason #1: Reduced Shipping Costs

    Mexico is closer. There are no international waterways that need to be crossed or large cargo ships that need to be used. Shipping from China (and other Asian countries) to the United States can be very costly. And, if we are being honest, it takes quite a while. There is no such thing as fast and affordable shipping between the two continents.

    Shipping from Mexico is much easier, much faster, and much more affordable. Generally speaking, an entire container can be shipped in less than one week from Mexico to the U.S. – and the same thing would take 5 weeks from China and cost over twice as much. Ground freight shipments from Tijuana are often on next day delivery terms.

    Reason #2: Affordable, Highly Trained Workforce

    As a manufacturing professional, you know that there is a difference between a cheap workforce and affordable, quality workforce. When contract manufacturing in Tijuana Mexico, you will find the latter. While wages in Mexico are drastically lower than the US, the rates are quite competitive in relation to living costs, i.e., wages are good, especially in Tijuana. Manufacturing workers are making a living and also have steady work. It is simply a win-win to reduce cost by accessing labor rates in Mexico while also leveraging a highly skilled and reliable workforce.

    We all know that keeping employees happy means they provide satisfying work. And that is what you will find with nearshoring. Time and effort is spent on training the workforce to meet a certain standard of quality while also maintaining efficiency.

    Reason #3: A Solid Supply Chain

    In order to get the raw materials that are needed for manufacturing products, there must be an established and reliable supply chain. This is especially true if they intend to meet the needs of many different industries (especially essential industries such as medical devices). While China and other Asian countries may have vertically integrated supply chains, they are often not as nimble or transparent as Mexico. Mexico, on the other hand, has an established and efficient supply chain and has the ability to support even the most complex industries with the raw materials and component parts needed.

    Mexico contract manufacturers are able to provide flexibility, options, and most importantly, transparency based on location and business models. Communication and trust are critical to a robust and reliable supply chain and all of which contributes to quality and on-time delivery.

    Reason #4: Tax Incentives

    Working with companies in Mexico that are registered under the IMMEX and IVA program (such as Coastline International) can benefit from incredible cost savings. It allows those companies that manufacture in Mexico and export their goods relatively quickly to avoid paying the 16% value-added tax on the items. This is a government program that is being used to give a little boost to both sides.

    There are also many additional duty-free benefits through the USMCA (formerly NAFTA) agreements when working with a Mexico contract manufacturer.

    Reason #5: The Geographical Proximity

    Aside from shipping costs, there is another benefit to being close to where your manufacturing is taking place. If there are questions about the process, phone calls that need to be made, or a visit to the factory that is warranted, it can easily be done.

    Mexico’s time zone is equivalent to those within the U.S. And, traveling to and from Mexico can be done in a day from nearly anywhere in the country. This is not only convenient, but it reduces the need for extended global travel that is often required to visit manufacturing facilities in Asian countries.

    Move Your Manufacturing with Coastline International

    If you are ready to learn more about moving your manufacturing from Asia to Mexico, then Coastline International can help. We specialize in the nearshore manufacturing of medical devices and electronics with extensive experience in the aerospace, industrial, and consumer goods sectors.

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

  • 5 Reasons to Consider Nearshoring vs. Offshoring for Manufacturing

    5 Reasons to Consider Nearshoring vs. Offshoring for Manufacturing

    Deciding to take your manufacturing out of the country to increase production, efficiency, and growth is a step in the right direction. Though, just as important is deciding where to take that operation. Your first thought may be to go offshore – since it is cheap and that’s what most people are familiar with. While there may be advantages to this, there is a good chance you will find nearshoring your best option. Here are 5 reasons why. 

    1. Communicate During Business Hours

    One of the biggest issues with offshoring is the time difference. While it may not seem like too big of a deal initially, having to work with your contacts without being able to connect live during normal working hours can lead to strain. 

    The manufacturing process goes much more smoothly when everyone is on the same page. And being able to effectively communicate is a huge part of doing so. With nearshoring, you get a workforce that is essentially much closer to your working hours, give or take an hour or two difference. This is much more manageable than, say, a 14-hour time difference. As a result, every operation can flow much more smoothly.  Time zone differences can pose much more challenges than one may think!

    2. Reach Your Market Faster with Geographic Proximity

    You have your products manufactured offshore. Once they are done and ready to be sent out into the market, what do you do? That’s right – you wait. Your shipment will likely make its way to you in freight containers via cargo ships. A long trip along the large sea can lead to a long wait for your finished goods. 

    Being in close geographic proximity with your nearshore manufacturer means receiving your product at a much faster rate. You may even be able to receive them the same day or the next day during a rush situation. Crossing product from Mexico into the US can be done on a same-day or next-day basis; this is simply not realistically obtainable with an offshore manufacturer.

    When the end goal is getting your product in the hands of customers, you don’t delay. Take the fastest route and prioritize global proximity.   

    3. More Cost-Effective Overall

    It’s true – transferring your manufacturing process to an offshore company can greatly reduce your costs. Historically, Asia is known for cheap labor; however in recent years Mexico’s labor increases have slowed in comparison to Asia which has made nearshore companies much more competitive.

    Costing models are not based solely on labor. Offshoring means having to make adjustments for currency, time difference, workforce hours, travel, and the like. And, let’s not even talk about the cost of shipping – both time and money. All of this decreases your operational efficiency and could cost you much more over time.  In addition, there is no value in compromising quality.

    Nearshoring, depending on where you are in the U.S. can be similar to sending your manufacturing process to the next state over. You can continue to operate business as usual while still taking advantage of the lower labor costs in Mexico and other Latin American countries. 

    4. An Increase Cultural Similarities

    Explaining your visions and concerns to someone else is not always the easiest thing to do. When trying to do this with those from a different culture – and with a potential language barrier – sometimes things get lost in translation. This is often the case with offshore manufacturers. 

    When working with nearshore manufacturers, there is a closer connection in communication, and shared similarities in culture and social customs, for example. This makes working together to reach the goal a much easier process.  Make sure to confirm your key contacts will be capable to speak English.

    5. Access to a Stronger Workforce

    The workforce in manufacturing facilities around the world is often skilled and knowledgeable. Many are literate and able to communicate effectively in English with businesses throughout the United States. However, one of the best features of nearshore manufacturers is the available workforce. The pool of workers is of a much higher quality than you will find in offshore countries. 

    Not only does this mean they have higher literacy rates and can complete the task they are trained to do, but it also means they do so with higher quality. And, that’s worth a lot when it comes to receiving a perfect finished product. 

    Learn More About Nearshoring at Coastline International

    If you are ready to learn more about why you should consider nearshoring vs. offshoring or you are ready to choose your next contract manufacturer, contact Coastline International at (888) 748-7177 or contact us online.

  • Benefits of Nearshore Manufacturing in Mexico

    Benefits of Nearshore Manufacturing in Mexico

    Nearshore manufacturing is the practice of expanding business operations to nearby shores with strategic partners in another, usually neighboring country (i.e., Mexico). This approach has become increasingly valuable as companies seek to strengthen their supply chain resilience and reduce vulnerability to supply chain disruption.

    (more…)