Manufacturing a product outside the U.S. is a very convenient and cost-effective decision in many circumstances. If you’re looking for a manufacturing partner, consider finding one that’s Mexico-based. The advantages of manufacturing in Mexico include:
Lower Cost
Many companies outsource manufacturing because doing so is more affordable than manufacturing their products in the U.S. However, the cost of labor isn’t the only factor that can affect overall manufacturing expenses.
You may also have to account for the cost of shipping materials and finished products between the U.S. and your manufacturing partner. If your manufacturing partner is in Mexico, you’ll reduce shipping and transportation costs. Many Tijuana-based manufacturers ship in and out of their San Diego broker and/or warehouse locations which is an added convenience and cost-saving strategy.
Ability to Monitor the Situation
Researching a partner is very important when outsourcing manufacturing. You should feel confident you’ve chosen the right partner for your needs when you contract with one.
However, after identifying a partner and executing the transfer of manufacturing, in many cases you will need to monitor and/or be involved in the operation from time to time. Doing so is much easier with a Mexico-based manufacturer than it is with a manufacturer in another part of the world. For example, visiting a site in Tijuana is only a 45-minute drive from the San Diego airport!
Having the option to check in on the operation can also allow for greater transparency with customers. If they want to know you’re manufacturing products safely and ethically, you’ll be able to more confidently assure customers this is the case if you can regularly keep an eye on your partner.
Free Trade Agreements
Mexico has robust free trade agreements with other countries. These agreements guard against border hold-ups and other such issues that can lead to costly inefficiencies.
Infrastructure
Mexico actually has more free trade agreements with other countries than any other nation in the world. As a result of these agreements, manufacturing has become a major industry in the country.
The government has built up infrastructure to propel the growth of this industry. Mexico already has the infrastructure necessary to facilitate your manufacturing project, once again avoiding the slow-downs that could otherwise cost your business a lot of money.
Because manufacturing is a major industry in Mexico, it’s worth noting that many of the workers at Mexican manufacturing companies are experienced. Having highly trained and competent personnel has a direct impact to quality and reliability.
Guarding Against Legal Issues
The greater the distance between your business and your manufacturing partner, the greater the odds you may run into problems or issues that could result in legal trouble or other such hold-ups.
For instance, if your manufacturing partner is on the other side of the world, it requires much more time to ship finished products back to you. The chances of an accident (damage, loss, etc.) occurring during shipping may thus be greater. Depending on the circumstances, there could be questions regarding liability for such incidents. You’re less likely to encounter such difficulties if you minimize shipping distances. In addition, Mexico does not have a reputation of having the IP issues that are known in Asia.
Location is NOT the Only Important Factor
These are all good reasons to choose a Mexico-based manufacturing partner. That said, remember that no two manufacturing partners are the same.
Perhaps you’re manufacturing specialty electronic or medical products. Confirm your partner is able to handle such a task. By doing your research, you’ll find the right partner for your goals.
Learn More About Manufacturing in Mexico
Coastline International has been offering reliable manufacturing services in Tijuana, Mexico since 1982. Find out how we can help your business by contacting us online today.