Packaging in Mexico can help reduce costs and contribute towards sustainability

In an announcement that will send ripples across the manufacturing industry, Hershey Co. promised to begin producing packaging for many of its popular chocolate candies in Mexico.

The move will not only serve to reduce costs for the corporation, it echoes the sustainability movement Mexican authorities have been pushing for companies, maquiladoras or otherwise, within the country.

Mexico is leading the way in implementing innovative sustainability methods, re-branding the country as an environmentally friendly manufacturer of goods for consumers who desire more green products. Shelter companies located within the country can reap the benefits of lowered costs and a green image by placing their operations in the larger industrial centers of Tijuana, Mexicali, Juarez, and Guanajuato. The increase in production in the country has led to an economic resurgence from the nation and a rise in employment.

For Hershey, the challenge to produce more environmentally- friendly packaging came with a simple solution: reduce the size of packaging. The cost-saving benefits of purchasing less wrapping materials from vendors helps make Hershey more financially viable, as well as raising the company’s green quotient internationally.

By locating their packaging in Mexico, Hershey is making a loud declaration of their commitment to environmental efforts, and as larger corporations create a trend, smaller companies can benefit from this shift in thinking about packaging goods. As Mexican authorities respond by building infrastructure to service more packaging centers, more companies will be able to enjoy the benefits of reduced costs and a greener movement in their processing of goods.

The trend is unlikely to be limited to packaging in Mexico. As more shelter companies take advantage of the new business models within the country, the sustainability movement will grow to include reductions in other aspects of manufacturing.

Responding to the challenge of reduction in packaging, other companies have worked to invent packaging materials that not only reduce the carbon footprint. Gruppo Francia created thinner tubs for its food, resulting in a product that is lighter to transport. Other companies have begun eliminating unnecessary packaging, such as plastic trays that anger environmentalists and add to the cost of producing food. By radically re-designing the manufacturing process from start to finish, companies are discovering methods to reduce cost.

Hershey’s move to reducing packaging in its Mexican locations signals a trend in international business methods. As Mexico re-brands itself as an innovator in industrial sustainability methods, the snowball effect will reach far beyond chocolate candies.

Manufacturers looking to marry low cost with environmentally healthy business practices will find fertile ground in Mexico’s current industrial revolution. By taking advantage of the innovation-friendly business atmosphere of Mexico, companies can follow the trend and raise the profile of their businesses while maintaining cost-effective ways of producing their goods.