Benefits That Manufacturers Enjoy When Manufacturing in Mexico

0

American firms have enjoyed several benefits of manufacturing in Mexico for several years. After the United States-Mexico-Canada Trade Agreement was executed, companies in the United States can better enjoy the benefits of manufacturing in Mexico. Here are the benefits that manufacturers from all over the world can enjoy.

Amazing labor costs

The most amazing advantage of manufacturing in Mexico is the high quality and low-cost workforce you get here. Considering the present economic conditions globally, wages in Mexico are around 3/5th of what they are giving in China. And this highly cost-effective labor force is well-qualified and educated.

Supply chain cost and length

If you want to avail of the advantages of manufacturing in Mexico, then it has a great supply chain. While orders from Asia are tough to accomplish because of parts, assembling, and finishing, the products can be shipped from Mexico to the US in just 1to 2 days. Companies that get products from the other corner of the world have to enjoy a longer waiting period and bear the extensive shipping fees that get completely wiped out when you manufacture it in Mexico.

Security of Intellectual Property

As per Industry Week, Chinese companies are duly responsible for 80% of the total intellectual theft US companies face. A major advantage of manufacturing in Mexico is that the nation secures IP with laws that are somewhat similar to those enforced by Canada and the US.

Proximity

Mexico is in close proximity to the US, which can benefit US firms to a great extent. It makes flights cheaper and quicker. Imagine a flight from Shanghai to the US taking several hours while a flight from Mexico to the US arrives within an hour. The proximity also wipes out the time difference. Hence, companies can interact during normal working hours and work on the same schedule.

Professional workers

Top-notch manufacturing in Mexico by global companies has taken place for decades. This has made Mexican workers highly qualified, educated, trained, and experienced in producing products of high quality.

Social aspect

A major benefit of manufacturing in Mexico is that the nation is socially aware of its workforce and its products.

  • The labor laws are similar to that of the US and Canada. At the same time, the workweek in Asia is 60 hours. The highest number of working hours is 48 in Mexico.
  • Mexico has rigid rules for occupational safety and child labor.
  • The place has strict rules that obligate the safety of the inputs used to make goods.

A healthy and positive work environment

Lastly, one of the benefits of manufacturing in Mexico is that it offers an extremely professional and high-quality business environment. It is a prolific exporter of the world and has 12 free trade agreements with 44 nations that administer the work relations. Mexico showcases stable democratic values and a clear regulatory environment,

These are some benefits of manufacturing in Mexico. The nation has opened its door wide to attract businesses worldwide to seek opportunities and settle their work here.