Mexico Manufacturing

Transport, shipping, and fulfillment costs are a part of doing business. However, these costs can vary depending on where you’re doing business. If your company has already established all or some of its supply chain and manufacturing in Mexico, relocating your fulfillment operation can help further reduce your operating costs. Likewise, if your shipping and order fulfillment centers are currently in the United States or Canada, nearshoring to a new [...]

There are numerous benefits of manufacturing in Mexico, from lowering your production costs to accessing Mexico and its trade partners’ markets.  But as with any new business venture, it’s important to create a solid plan before taking action. Even if you’ve offshored manufacturing in the past, Mexican business culture and laws can present different growth opportunities, as well as challenges. While some companies find success in developing subsidiary operations from [...]

Over the last two decades, Mexico has made substantial strides within the global manufacturing economy. Thanks to fluctuating market forces and changes in trade agreements, a steady tide of American manufacturers have fled China in lieu of closer proximity and a friendlier business climate with their southern neighbors.  If you also are considering relocating your manufacturing facility or in the process of setting up manufacturing in Mexico, there are several [...]

In recent years, the global manufacturing landscape has undergone significant changes and developments. This shaking up of the status quo has loosened China’s grip on the market, providing openings for other world players seeking to carve out their own niche within the manufacturing industry. One such beneficiary of this trend has been Mexico, which has seen an increasing rate of U.S. companies doing business in Mexico.  Today, according to NAFTA, [...]

China is quickly losing its stronghold as the manufacturing superpower of the world. The reason this is occurring is a topic of much controversy, but when you start to compare data—then factor in the ongoing trade war between the U.S. and China—you realize that China is not the cheapest nor the easiest offshore territory to utilize facilities in.   Today, the landscape is changing, providing opportunities for countries like Mexico to [...]

This content has been updated for accuracy and relevancy on February 26th, 2020. What is the United States Mexico Canada Agreement (USMCA)? One of President Donald Trump’s focal points during his campaign, as well as his first years in office, was renegotiating the United States participation North American Free Trade Agreement (NAFTA) and pulling out of the Trans-Pacific Partnership (TPP). At the end of September of 2018, more than a year [...]

Mexico's Labor Force: Participation Rate & Unemployment Improvements A recent study by Tradingeconomics.com shows Mexico’s labor force participation rate in 2018 is trending upwards, despite the half-percent decrease from September to August. This is slightly lower than the average 59.82% Mexico held from 2005 to 2018. source: tradingeconomics.com The unemployment rate in Mexico has improved as well, from 3.5% to 3.2% in October 2018. FocusEconomics reported that “third-quarter growth exceeded [...]

Content was last updated for relevancy and accuracy on December 20, 2023.  Will Tariffs Benefit or Hurt U.S. Manufacturers? The primary intent of applying tariffs on raw materials — as seen in recent and historical tariffs on China — is to help domestic producers of such materials be more competitive with their global counterparts, thus creating (or protecting) domestic jobs. And while this strategy can certainly help domestic producers compete [...]

Cost is of the utmost importance to companies considering expanding or moving their manufacturing operations to another country. When analyzing the cost of manufacturing, many companies choose to relocate their manufacturing to Mexico for a number of reasons. These reasons vary from lower labor rates to the availability of qualified workers, but each reason is vital to consider in order to conduct a comprehensive analysis of what the costs of [...]