Manufacturing products including medical devices and electronics in Mexico allows for lower labor costs, faster turnaround times, enhanced quality control, and unique tax benefits. But how does it work, and could it benefit your business? Read on for answers to frequently asked questions about manufacturing in Mexico.
Is manufacturing in Mexico cheaper than in China?
Mexico has some of the most competitive labor rates in the world, including those comparable to China. However, manufacturing in Mexico you can save on tax breaks, less costly travel, and better quality control. At first glance in the short term, it may appear equivalent to manufacture overseas, but in the long run, nearshore manufacturing can surely be a money-saver.
Does Mexico have the skilled workforce my product needs?
Yes! Mexico has a large labor pool, many of whom are highly experienced in manufacturing. In fact, per capita, Mexico produces more manufacturing and engineering degrees than the U.S.
Do reputable Companies manufacture in Mexico?
Absolutely. Companies including General Motors, Hewlett-Packard, IBM, Sony, Siemens, Phillips, Motorola, Nissan, LG, Toyota, Medtronic, Stryker all manufacture products in Mexico.
What exactly is a Maquiladora?
Maquiladoras are factories owned by businesses based in other countries, such as the United States. Maquiladoras enjoy preferential tax programs, such as duty-free and tax-free importing of equipment and materials.
Are manufacturing facilities in Mexico safe?
When you work with an established contract manufacturing company, you can assure that safety is a priority. From FDA-registered facilities for medical device manufacturing, to secure facilities boasting access control, leading contract manufacturing facilities are built to U.S. standards, and offer cleanrooms, controlled manufacturing environments, and necessary ISO certifications.
Where are the manufacturing facilities located in Mexico?
Tijuana, Mexico is home to some of the best facilities in Mexico for medical devices and electronics manufacturing. The proximity to the U.S. also allows for easy access to the facilities, enhanced quality control, and fast delivery times. Most facilities are very close to the border for ease of same-day access.
Are the raw materials I need readily available in Mexico?
Some are, and some are not. In general, metals and resins are widely available in Mexico. However, the Maquiladora program allows for the tax-free importing of other materials to manufacturing facilities in Mexico.
How long does it take for manufacturing to begin in Mexico?
Working with an established contract manufacturer can expedite the process. In some cases, manufacturing may begin within just weeks. However, the timeline depends on a variety of factors, including importing materials, lead time, etc.
Can products manufactured in Mexico be shipped faster than in China?
Yes. Shipping is significantly expedited with nearshore manufacturing, due to its proximity to the U.S.
Am I subjected to minimum volume orders on products when manufacturing in Mexico?
Yes, but the minimum volume of orders varies from product to product. Incidentally, there are minimum volumes when manufacturing in the U.S. and China, as well.
Who will help me if there is a problem with manufacturing in Mexico?
One of the main reasons it is smart to work with a contract manufacturing partner is because they will help you resolve any issues that may arise with manufacturing in their facilities in Mexico.
Are there U.S.-based contract manufacturers that can facilitate turn-key manufacturing?
Yes. Coastline International is based in San Diego, CA just minutes from our manufacturing facilities in Tijuana. For more than 40 years, we have helped U.S. companies enjoy savings without sacrificing quality on a variety of electronic and medical devices.
Get Started with Nearshore Manufacturing in Mexico Today
Since 1982, Coastline International has been a reliable contract manufacturing partner for U.S.-based companies wishing to manufacture in Mexico. With more than 50,000 square feet of manufacturing facilities and hundreds of employees, Coastline International facilities specialize in life science, biotech, and electronics assembly and packaging. To learn more, contact us at 888-748-7177, or send us an inquiry.