How Furniture Companies in Mexico Are Bypassing Supply Chain Issues

April 23, 2022

Mexico may be known for its automobile, aerospace, and medical device manufacturing, but more and more furniture companies are manufacturing in Mexico thanks to the opportunity to avoid critical supply chain challenges. 

Furniture Manufacturing in Mexico: The Basics You Need to Know

Furniture manufacturing in Mexico is bigger than ever, with around $1 billion in furniture exported to the United States each year. While Mexico supports all types of furniture manufacturing, the most popular products produced in the country include wood-framed and metal-framed upholstered seating and bedroom furniture.

When it comes to finding a Mexico manufacturing location, companies aren’t short on options. Because furniture production usually requires large pieces of real estate, furniture plants can be found spread across Northern and Central Mexico. However, production is more concentrated in specific cities, such as Puebla and Monterrey.

Why More Furniture Manufacturers Are Looking Towards Mexico

Mexico has a rich history of textile and furniture manufacturing, but back in 2010, many companies abandoned the country and relocated their manufacturing to China. That change didn’t last long, however. In 2014, as wages in China began to rise, manufacturers started looking back to Mexico.

Now, in addition to increasing political tensions, wages in China continue to rise. On top of these added costs, the COVID-19 pandemic revealed critical weaknesses in overseas supply chains, causing many companies to seek out supply chains that are less complex and less prone to disruptions.

Why Mexico Is Ideal for Furniture Manufacturing

EXISTING INDUSTRY

With a highly diverse manufacturing industry-furniture companies in Mexico are able to take advantage. The automobile and electronics sectors, for instance, have created stable supply networks and have led to the creation of various manufacturing clusters. By setting up their operations within these clusters, furniture companies gain access to world-class facilities and the cost-saving benefits of pooled resources.

PROXIMITY TO UNITED STATES MARKETS

Manufacturing in Mexico is an obvious strategic move for companies with consumers in the United States or Canada. Mexico’s proximity to these markets in combination with its network of highways and railways allows companies to more quickly ship their products with less risk and lower costs compared to shipping from overseas.

Plus, manufacturing in Mexico makes sense for businesses looking to gain a competitive edge without sacrificing customer service. In addition to the fact that Mexico and the United States share time zones, which often simplifies quality management processes, the chance to create shorter supply chains allows them to more easily adapt and respond to changing customer demands.

SUPPORT SERVICES

For many years, large wood furniture has been the most popular type of furniture exported from Mexico. However, customer tastes are always changing. For example, with the prevalence of online shopping, smaller pieces of furniture are increasingly popular. Furniture businesses need to be able to keep up with these shifts in style. Luckily, Mexico has the unique advantage of IMMEX shelter services, which give manufacturers the expert material sourcing, site selection, and compliance support they need to scale and adapt their operations and increase their profitability.

Stay Focused on Your Furniture Production With NAPS

If you want to take advantage of the supply chain benefits of manufacturing in Mexico, you can’t get dragged down trying to navigate Mexico’s laws and regulations. As your team of experts in Mexico manufacturing, we take over your administrative and compliance management, so you can produce high-quality furniture for your customers with less risk and less worry.

Want to learn more about what we can do for your furniture production? Contact NAPS today.