The Best Choice for Outsourcing: Manufacturing in Mexico

March 4, 2013

Manufacturing in Mexico has become the preferred alternative when compared to other low-cost countries.

Mexico related articles and outsourcing studies, done locally and by top consulting firms and business news outlets (such as Mad Money, Reuters and Bloomberg) recognize the attractiveness of Mexico and what the country has to offer. These studies coin Mexico manufacturing as the top venue for foreign direct investment and are ranking favorably above China, Brazil (their territorial counterpart) and India.

There are many reasons why these outlets find Mexico an attractive option. According to Bloomberg news, many different sectors that outsource and or offshore manufacturing in Mexico are thriving. The auto industry is a prime example with “Vehicle exports climbing 14.2 percent to 178,562 over the same period last year.” Even Japanese auto manufacturers are shifting production by, “transferring more of their manufacturing processes to Mexico” said the Japanese Daily Press.

Bloomberg Business news states, “as the wage gap narrows between China and Mexico, companies are increasingly coming to appreciate Mexico’s competitive advantages, especially during difficult economic times.  The combination of the benefits Mexican manufacturing locations offer include lower wages, stable labor relations, lower landed transportation costs, favorable currency exchange rates and reasonable tariff costs”.

Shelter Services, like North American Production Sharing, Inc. (NAPS), enable companies to reduce their risk of manufacturing in Mexico and be more cost efficient by outsourcing the administration of the Mexico manufacturing facility, including Human Resources, Accounting, Import/Export, Environmental, Health & Safety and all government compliance in each functional area. “NAPS makes expanding into Mexico no different than expanding down the street or in the next town over,” said Scott Stanley, NAPS’ Sr. Vice President.  “Our clients initially need to focus on transferring the knowledge of their processes to the Mexico manufacturing facility and then only concern themselves with production and quality control.  NAPS takes care of virtually everything else.”