However, when comparing Mexico vs. China manufacturing, outsourcing to China has recently come with drawbacks. Significant wage inflation, rising transportation costs and a general shortage of labor have made manufacturing in China more expensive than in Mexico. Chinese assembly plants still often have poor employee safety standards, which is another issue being addressed by the Chinese government.
Fortunately, offshoring to Mexico has become more viable, especially for companies headquartered in the United States and Canada. Along with the added regulations and tax benefits provided by the maquiladora system and IMMEX, outsourcing to Mexico ensures lower shipping costs and easier factory visits thanks to the shorter distance.