When we think of the leading names in the auto industry, it’s easy to assume that the most reliable, desirable commercial vehicles are made in Europe, the U.S., and Asia. But the past few decades have seen many leading brands move substantial parts of their car manufacturing to Mexico, which is now the #3 global leader in automotive manufacturing. Who are the automakers in Mexico? Toyota, Volkswagen, Nissan, and Kia [...]

When establishing a business presence in Mexico, it’s important to implement accurate, legal payroll procedures for your employees. In some ways, this compensation process mirrors U.S. regulations, like how an employer must contribute to social security (the Mexican Institute of Social Security or IMSS) and withhold appropriate taxes. However, there are also some noticeable differences. For example, in Mexico, most employers are required to redistribute 10% of the company’s profits [...]

If your operating company has chosen to move some or all of its manufacturing to Mexico, you already know the benefits of nearshoring—lowering your production costs, improving the efficiency of your supply chains, among others.  With the benefits of doing business in Mexico, however, come some potential challenges. As you begin to employ and pay an international workforce, you’ll need accountants and lawyers who are well-versed in Mexican payroll laws [...]

Content was updated for accuracy and relevancy on October 11, 2023. In today's fast-paced business environment, the pressure to stay ahead of competitors and operate efficiently is relentless. To navigate this challenge, many companies have turned to a practical solution: nearshore outsourcing services. It's more than just a buzzword—it's a strategy that offers businesses tangible benefits, directly impacting the bottom line. Here, we explore how nearshoring can help businesses strike [...]

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 [...]

If you’re considering moving your company’s manufacturing operations to Mexico, you’re likely intrigued by the nation’s cost-effective labor force and geographic proximity. In addition, you probably know that the USMCA agreement has recently replaced NAFTA and will continue promoting free trade between the United States, Mexico, and Canada. However, it’s important to understand the taxes and fees that may apply when doing business. Does Mexico have a border tax? The [...]

Since the advent of NAFTA in 1994, the United States, Mexico, and Canada have enjoyed a special relationship with reduced barriers to trade. Now, more and more U.S. businesses are nearshoring their manufacturing to their southern neighbor, Mexico.  But America isn't the only country with whom Mexico has a trade deal-- companies with operations in Mexico can also benefit from the nation’s numerous additional free tree agreements (FTAs) by exporting [...]

While China and Vietnam were once prominent partners for U.S. brands, wage inflation and changing trade agreements have left many clothing lines searching for new solutions for their manufacturing needs. With COVID-19 continuing to disrupt the garment industry, it’s more prudent than ever to diversify and shorten your supply chain—and, whenever possible, to lower your apparel manufacturing costs. As these pressures coalesce on clothing and textile brands, the new USMCA [...]

Are you considering moving your company’s manufacturing to Mexico to enjoy the advantages of a skilled labor force, lower turnover rate, and cost savings? Once you’re familiar with USMCA pros and cons and have assessed other benefits of doing business in Mexico, the next step is selecting the right manufacturing facility to produce your goods. Like all business owners, your goal is to find a site where you can manufacture [...]