Mexico Manufacturing

The wages of workers in Mexico are one of the most cost-effective aspects of nearshoring manufacturing operations to Mexico. In recent years, the hourly wage rate of workers in Mexico has dipped below that of China, making it one of the most popular places for manufacturing operations, particularly for products destined for the United States. In order to understand wages in Mexico, it is vital to consider the various factors [...]

Outsourcing and offshoring are often used synonymously, however, the terms in fact have two very different meanings and implications. Outsourcing is when a company negotiates a contract with a third party to perform a specific function. When outsourcing a process or operation, it is vital to find a company or person that specializes in the task at hand. However, offshoring is when a company sends in-house jobs to be performed [...]

Content was last updated for relevancy and accuracy on September 30, 2019.  China and Mexico are two of the most popular choices for manufacturing because of the low production costs and high volume environments. In order to choose between manufacturing in these two locations, an analysis of the pros and cons of manufacturing in Mexico vs. China should be considered.   China vs. Mexico Wage Rate Comparison One of the [...]

  Content was updated for accuracy and relevancy on January 17, 2020. Following the introduction of the North American Free Trade Agreement (NAFTA), many industries have relocated their manufacturing operations to Mexico. This exodus has caused a need for a better understanding of labor laws in Mexico and how they differ from those in the United States. Mexico labor laws are designed to improve the quality of employment relationships, protect [...]

  Globalization has truly changed the economic landscape, leading to diverse growth all over the world. In recent years, Mexico has become a hub for major companies, particularly those with manufacturing needs. The new factories, experienced workforce, low labor costs, and improved trade agreements—particularly NAFTA—have contributed to the growth of new businesses in Mexico. NAFTA (the North American Free Trade Agreement), which was implemented in 1994, allowed for easier trade [...]

Mexico is catching the world's attention as a rising star in the world of manufacturing. The low costs, favorable regulatory climate, quality of the workforce, and ease of trading to the North American and European markets mean that more and more companies are choosing to locate their production operations in Mexico. Mexico has several potential ways for foreign businesses to commence operations in the country, either alone or with a [...]

In any company, no matter what you sell, the amount of money that you buy it for is the biggest factor that affects how much you will be able to make in profit after selling your product. Because of this, more companies are outsourcing or offshoring their work and time in order to save money. Businesses can make more money by keeping their non-essential core activities and processes going through [...]

Manufacturing in Mexico has rapidly grown as a result of a significant political and economic reorganization in the early 1990s. The economy shift resulted in the North American Free Trade Agreement (NAFTA) with the US and Canada. State-owned companies were privatized changing Mexico’s economy into an export-oriented industrial one. As trade between Mexico and the US increased, a “manufacturing belt” of maquiladoras, factories in Mexico that produce goods for US [...]

It wasn’t long ago when businesses in North America were in a rush to get a foothold in China. Manufacturing in China seemed to be the solution to high-priced manufacturing costs in the United States. China had very inexpensive labor and operational costs, and even with a long supply chain, they could help companies undercut the competition on price alone. However, many of those companies are now in a bind [...]