Over the past decade, many U.S.-based electronics and consumer product manufacturers have shifted production to Asia to benefit from low-cost labor. However, as wages continue to rise in China, companies are taking a closer look at how to improve their bottom line. With that, supply chain strategies are playing a bigger role in ensuring a company’s profitability.
According to a 2010 study on air shipping from China, the shipping cost of sending a 40-foot (or 12-meter) container from China to the United States rose to $8,000, compared with $3,000 earlier in the decade. While shipping costs have declined a bit since then, a significant savings can be realized by packaging products in Mexico vs. China.
NAPS Is Your Trusted Partner for Packaging Services in Mexico
Many of our administrative services in Mexico are designed to help companies that import products to the United States find an innovative solution to control freight costs from China. NAPS acts as your partner in Mexico to establish a product packaging operation in as little as four to six weeks. The manufacturer sends components in bulk from Asia; components enter Mexico duty-free; and the product is packaged in Mexico, then either returned to a warehouse in the U.S. or shipped directly to the end user. With the current trends among product packaging companies, Mexico offers many growing benefits and options to improve profitability with improved packaging costs.
Packaging Case in Point: Speck Products
Speck Products has been a market leader in the electronic accessory category, selling fun and unique products for every personality. Founded in 2001, Speck’s focus on innovation, lifestyle, design and fashion has made Speck a one-stop shop for accessories for iPhones, AirPods, smart phones, laptops and other electronic devices. Speck strongly believes that device cases are meant not only to keep these delicate devices protected, but that they should be stylish to reflect the character and unique taste of every customer, making them more fun to own and use. Its products can be found worldwide at Apple retail stores and at most major electronics dealers.
Read the complete case study here.
NAPS’ full-service Administration and Compliance Management Program enables its clients to focus on the production and/or packaging portion of their operation—without concern for government compliance, HR, accounting in Mexico, import/export and environmental health and safety considerations.
Contact NAPS to Get Started with Packaging in Mexico
Contact us or call us at 866-484-2051 for a more detailed analysis of your proposed expansion to Mexico, and learn how NAPS can help facilitate the entire process including establishing your Mexico packaging operation.