As the manufacturing industry continually shifts to nearshoring operations in Mexico from China, the preponderance of products made in Mexico is steadily increasing. As a consumer, the first concern is whether or not the quality of the product made in Mexico is commensurate with those made in the United States and China. In addition to this, it is important to consider the top industries thriving in Mexico and the companies [...]

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 [...]

This content was last updated on July 17, 2019. Maquiladora Definition A Maquiladora is a factory or manufacturing operation in Mexico run by a foreign company and exporting its products to the country of that company. These factories import certain raw materials on a duty-free and tariff-free basis for manufacturing and then export the manufactured goods back to the country of the company that produces the manufactured goods (often the [...]

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 [...]

  Improving Manufacturing Quality When considering how to increase production while still retaining customer loyalty, the most important concern is maintaining the quality of the product. By manufacturing a quality product, businesses can ensure that profits and sales will continue to rise. A common mistake in growing businesses is to enlarge the manufacturing capabilities without ensuring the quality of the product will be maintained. This leads to a consumer that [...]

  Although Germany and France perfected the design and engineering of the automobile in the late 1800’s, America became the industry leader during the first half of the twentieth century thanks in part to Henry Ford’s innovations in mass production. This led to Ford, Chrysler and General Motors becoming the dominant automotive companies in the world in the 1920’s, while Asia and Japan rose to prominence after World War II. [...]