This content was updated on January 16, 2024 for accuracy and relevancy. The goal for every business is to drive revenue while simultaneously decreasing costs. The pursuit of cost savings is one of the many reasons why a growing number of American businesses—particularly within the e-commerce space—have begun manufacturing in Mexico. While most would cite the low hourly costs of labor or the cheaper warehousing fees, many fail to realize [...]

This content was updated for accuracy and relevancy on March 26, 2021. In 1994, the North American Free Trade Agreement (NAFTA) was ratified, causing an upheaval in the global trade and manufacturing landscapes. The restrictions, stipulations, and incentives within the newly minted trade deal suddenly made Mexico an attractive, cost-effective manufacturing option for American and Canadian countries. Consequentially, this foreign interest created a manufacturing resurgence and completely revitalized and transformed [...]

The past decade has ushered in an era of unprecedented economic growth and development within Mexico. Viewed as an emerging market, particularly in the commodities and manufacturing sectors, it now has the 15th largest economy in the world with a 2018 GDP of $2.6 trillion. Economists suggest that the recent growth within the Mexican economy's manufacturing sector has been spurred on by changes in foreign markets and trade policy. In [...]

Recent economic forecasts shine brightly on the continued growth and future of manufacturing in Mexico. Expert’s optimism for sustained growth is based on trends demonstrating an increasing share of American manufactures fleeing Asia—namely China—for Mexico, citing competitive wages, specialized workers, and the global costs of oil as deciding factors. Hearing this, you may be curious about how the manufacturing industry is structured in Mexico. Below, we’ll discuss the major manufacturing [...]

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, [...]

According to the US census, 34.8% of the United States’ imports in 2018 were from two countries: China and Mexico. Both countries are manufacturing hubs that can export goods at a reduced rate. And American businesses rely on partnerships with manufacturing plants in both countries to reduce labor, shipping, and infrastructure costs. Keeping these expenses low depends heavily on taxes and tariffs. How these tariffs are structured and how they [...]

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 [...]

Updated for Relevancy: November 13, 2024 Over the last decade, there’s been a renaissance taking place of manufacturing in Mexico. Changes in free trade agreements and regulations have created a friendly business climate, providing benefits such as highly skilled, low-cost workers, decreased shipping costs, and greater oversight—all of which resulted in an American manufacturing diaspora from China.   Seeing this steady tide of foreign businesses transitioning their operations, Mexican officials [...]