Considerations for Manufacturing in Mexico

01 Jul 2019 | Manufacturing Considerations for Manufacturing in Mexico Contact Us Despite recent threats of tariffs related to current immigration issues in the U.S., Mexico remains a solid contender for global organizations looking to mitigate tariffs in China, or simply diversify their supply chain. According to Inbound Logistics, “Mexico is becoming an increasingly popular option for any and all manufacturing industries that want to mitigate costs without compromising quality.” As a result, U.S. imports of Mexican goods rose 5.4% in the quarter from the year-earlier period, while imports of Chinese goods were down nearly 15%, according to U.S. Census Bureau data. Traditionally known for automotive, aerospace and electronics, more recently, manufacturing and assembly of office furniture, stamping and metal mechanics, and textiles (industrial applications) has emerged. Examples of market movement include: Companies like China’s Hisense, one of the world’s largest television manufacturers, is bringing more suppliers to Mexico as it aims to switch production of all U.S.-bound flat screen TVs to its largest plant outside of China. GoPro wants all of its U.S.-bound cameras to be in production in Guadalajara, Mexico, in the second half of the year as it seeks to insulate the firm against possible tariffs. Cosmetic Colors, a thriving Mexican producer of eyeliners and other cosmetic products, recently got a €7 million ($7.8 million) order from a European cosmetic giant for items that were previously made in China and faced a 25% tariff. The company’s high-end plant in the city of Toluca exports 85% of its products to the U.S. for the world’s top cosmetic brands. (Source: https://www.wsj.com/articles/trumps-mexico-tariff-threat-trips-up-manufacturers-shifting-out-of-china-11559478751) The advantages of considering Mexico vs. China include: Mexico follows similar Intellectual Protection laws as the U.S. and Canada Logistics advantages More compatible time zones for U.S. and Canada Lower travel costs Skilled workforce Reasonable labor costs Mexico’s exports on average contain about 35% or more U.S. parts, whereas Chinese exports contain far less, at about 4%. (WSJ 6/2/19) So, why wouldn’t organizations want to manufacture in Mexico? Identifying new suppliers can be a slow process. Organizations wanting to quickly hedge tariff implications will likely encounter slower response times in communications. In many cases, the costs remain higher than if sourced in China or SE Asia. Government regulations, including labor requirements, can be challenging to work through. Pro QC assists organizations in identifying new suppliers in markets around the world. Within Mexico, Pro QC has an office in Monterrey and a network of sourcing and quality professionals throughout the country. Contact us for additional information. Additional Resource: Why Manufacturing Industries are Nearshoring to Mexico https://www.manufacturingglobal.com/leadership/why-more-manufacturing-industries-are-nearshoring-mexico Tags: manufacturingmexicoQuality inspectionsourcingSupplier Auditsupply chain You May Also Like What Happens After a Failed Pre-Shipment Inspection? Pro QC Holds Special Seminar on Welding Inspection Standards in China to Strengthen Technical Expertise Pre-Shipment Inspection for Textile Workwear in Honduras Click Below to Improve Product Quality with Pro QC Contact us Get a Quote or Book a Service We will be happy to give you more information about our quality solutions. Please fill in this form to contact us. We will respond as soon as possible. If you would like to submit your CV, please click here. Contact Us by Email Contact Us by Phone North America +1 206 397 1145 Mexico +52 55 9990 7885 Colombia +57 601 9190355 United Kingdom +44 330 094 5589 France +33 9 7303 6784 Germany +49 15630 810151 Australia +61 2 8252 7691 India & South Asia +91 227 189 7407 Asia & Asia Pacific +886 2 2832 2990 We use cookies to improve your experience. By continuing to browse, you agree to their use. Customize settings Accept all Decline all Privacy policy Cookie policy × Cookie settings Please select the categories of cookies you would like to allow. Essential cookies are always enabled.