Why Manufacture in Mexico?
Advantages and Benefits – Manufacturing in Mexico
Today, With So Many Global Manufacturing Choices, Some Ask–Why manufacture in Mexico? Increasingly, companies are learning of the significant advantages and benefits of manufacturing in Mexico as a maquiladora versus other global locations. TACNA is helping companies quickly realize these benefits by establishing new Mexican manufacturing operations within six to eight weeks. See some of the significant benefits and advantages of manufacturing in Tijuana Mexico below.
Remain Competitive Globally
• Create cost advantages without sacrificing quality
• Increase profits as a whole
• Insulate your company from litigious U.S. labor markets
• Achieve quality Mexico factory output equivalent to that of your U.S. factory
• Sell to other Mexico maquiladoras
• Take advantage of Mexico’s many favorable foreign trade agreements
• Remain competitive with other U.S. companies manufacturing abroad
• Create the capital for reinvestment into your business through increased profits
High Quality, Low Cost Workforce
• Benefit from low labor rates–less than 25% of many U.S. loaded labor rates
• Control spiraling increases in workers compensation premiums
• Eliminate double digit annual employee medical cost increases
• Hire an educated workforce with 18 universities and 40 technical schools in Tijuana alone
• Benefit from a young well trained maquila industry workforce
• Employ from a highly concentrated pool of English speakers at middle manager levels
• Communicate easily because Spanish is the second largest U.S. language
• No false starts with an established base of skilled maquiladora manufacturing workers
Additional Cost Savings
• Reasonable building lease rates in modern industrial parks with solid infrastructure
• Savings of duties through NAFTA trade agreement
• Increased productivity with a standard Mexico maquiladora 48 hour work week
• Low cost direct dial telephones at U.S. toll rates or IP phones
• Reasonable availability and cost of utilities
Close Proximity to U.S.
• Fast easy access to U.S. based technical support, engineering and sales resources
• Offshore advantages with close proximity to U.S. Border
• Ease of access for customer visits to your plant
• Efficiencies through operating in the same or similar time zones
• Less than one day’s transit time for your product to arrive in the U.S. market from your Mexico maquila
• Meet next day air requirements from a U.S. shipping terminal after exporting from Mexico
• Quick border crossings for employees who cross frequently with a “Sentri” pass
Providing You Options
• Supervise your plant with trained U.S. workers, if you so choose
• Enjoy direct ownership of your Mexican factory, if you so choose
• Concentrate on expanding your business with the additional profitability garnered from lower Mexico manufacmaquiladora labor costs
• Preserve peace of mind by operating in a democratically governed country
Transportation Cost Savings and Infrastructure
• Benefit from a developed transportation and shipping infrastructure including land, sea and air
• Utilize available deep water ports for container handling
• Make parcel shipments (UPS or FedEx) from Mexico, but with U.S. rate structure
• Make LTL shipments from Mexico through U.S. Transfer point and freight forwarding
TACNA’s business is helping companies realize these benefits quickly and efficiently. We can have you up and running very quickly.
Stimulate both U.S. and Mexican Economies with Your Move
Your choice to manufacture in Mexico’s maquiladora industry provides many reciprocal benefits to the U.S. marketplace and to our large neighbor to the South.
For the U.S.–The Mexican economic development created through Mexico’s border manufacturing industry with its associated higher wage border region jobs in Mexico decreases illegal immigration to the U.S. This in turn, relieves U.S. social costs such as medical and educational costs for illegal immigrants. Further, since most of the raw materials for Mexico’s maquiladoras are sourced from the U.S., as opposed to what occurs in Asia, the maquiladora industry has a simulative effect on the U.S. economy. Lastly, our clients have found that off shoring some of the low skilled jobs to Mexico allows them to invest increased profits in the U.S. into more design and product development resulting in higher skill higher wage jobs in the U.S. and capturing of more market share.
For Mexico–The Maquiladora industry is a source of economic stability, housing and an important source of foreign exchange. For Mexican workers, it provides relatively high paying, skill developing jobs in a developing economy.