Mexico has a long manufacturing history, but the industry truly skyrocketed in the mid-20th century after the establishment of the Maquiladora program, now known as the IMMEX program. The IMMEX decree improved and expanded on provisions laid out by the original Maquiladora program and continues to position Mexico as one of the top manufacturing locations worldwide. How the Maquiladora Program Started The maquiladora program was established back in the 1960s [...]

Economic activity around the world saw, and is still seeing, the negative impacts of COVID-19, and Mexico is no exception. However, despite the largest drop in GDP since the Great Depression, Mexico’s economy has experienced unprecedented growth. While some have been slow to pick up, many sectors that are export-related, such as manufacturing, have been performing better than they were before the pandemic. Much of this growth comes as a [...]

Commonly referred to as 3PLs, third-party logistics providers are often used by companies that are looking to outsource elements of their distribution, picking and packing, and fulfillment in Mexico. U.S. companies have typically outsourced to 3PLs with facilities in China, but more and more companies are now choosing to manufacture in Mexico due to advantages such as the country’s skilled workforce and proximity to the United States. As Mexico takes [...]

More and more global manufacturers are setting up operations in Mexico due to the country’s low labor costs, skilled workforce, and various free trade agreements. But along with these benefits come the stress and complexities of establishing a business in a foreign country. It’s possible for companies to navigate these laws and regulations themselves, but this can easily lead to non-compliance issues and hefty fines, and put the success of [...]

Automotive manufacturing in Mexico has a rich history, and the country is currently the seventh-largest producer of passenger vehicles in the world, containing manufacturing plants for some of the biggest names in the industry. As a result of this significant growth, big manufacturers are continuing to choose Mexico as their location for producing 100% electric vehicles. In addition to low wages, Mexico has educational systems, existing infrastructure close to one [...]

Mexico’s mature electronics manufacturing industry dates back decades and was one of the first manufacturing sectors to experience significant growth in Mexico. As a result of ongoing foreign investment, the industry has continued to expand rapidly and is now the sixth-largest in the world. From flat-screen TVs to circuit boards, Mexico’s thriving electronics manufacturing industry includes virtually all types of electronics, but information technology is its primary export, making up [...]

Mexico has become a manufacturing hotspot that continues to increase in popularity due to its skilled workforce, low labor costs, and proximity to large consumer markets. But Mexico offers another significant advantage that has been a major deciding factor for many foreign manufacturers considering nearshoring to Mexico: the IMMEX program. IMMEX Overview Formerly known as the maquiladora program, Mexico’s IMMEX program provides foreign manufacturers with tax exemption opportunities, enabling them [...]

Sourcing Labor for YOUR Mexico Operation: Options in Human Resources Consulting Services Foreign companies with little experience in Mexico’s labor laws or manufacturing industry may run into various human resource challenges. From understanding the labor market to attracting the top available candidates, manufacturers have many different hurdles to overcome while remaining compliant with Mexican law. As a result, many companies choose to enlist the assistance of a business that offers [...]

While the United States emerges from the pandemic, the economy is still feeling its effects. Luckily, the recently passed United States-Mexico-Canada Agreement (USMCA) is likely to play a big role in facilitating the recovery of not just the United States’ economy, but that of North America as a whole. The USMCA The USMCA, the United States-Mexico-Canada Agreement, took effect July 1, 2020, as an update to the North American Free [...]