Choosing the right Mexico manufacturing location is one of the keys to success
Mexico manufacturing locations have become a desirable commodity on the world economic stage. One of the reasons for the resurgent interest in Mexico manufacturing locations by global firms is related to the fact that the country’s industrial labor rate, when adjusted for inflation, rose at the glacial annual pace of 0.4%. Today, Mexico’s manufacturing wages are now on par with those paid in Asia. This advantage narrows considerably when the cost of shipping to North America from Asia and customs and duties are factored in.
Factories in Mexico: choosing the location:
With some manufacturers making the trek from Mexico from Asia, and other companies taking their first steps outside of the boundaries of the United States, the Mexico manufacturing location decision most often comes down to a choice between the border or the interior of the country.
Companies that choose a Mexico manufacturing location at the border are usually those that produce items that are sensitive to the transportation component of cost, demand quick turn around times, are characterized by their physical bulk and require more convenient access to U.S.- based resources.
Interior locations, on the other hand, are often populated by companies whose cost is less affected by freight, and, consequently, are able to pack higher volumes of product into a single conveyance. Products manufactured in Mexico’s interior often have less demanding delivery schedules to meet, and, therefore, can tolerate the greater distance that they must travel to market.
American Factories in Mexico – Tecma Manufacturing locations:
American factories in Mexico, as well as those of other nations’ firms, can now be commonly found in border cities such as Tijuana and Ciudad Juarez, as well as in interior metropolises such as Torreon and Monterrey.
Because of its desire to service the needs of companies that wish to set up manufacturing plants in Mexico, both on the border and in the country’s interior, the Tecma Group offers industry its shelter, or manufacturing support services, at its Tijuana and Ciudad Juarez locations. For those manufacturing companies that seek an interior location for their manufacturing facilities, Tecma Group can also provide its services to set up operations in interior locations such as Torreon and Mexico City. Depending on the size of the manufacturing facility that a company wishes to establish in the country’s interior, Tecma can also provide flexibility to offer its services in Bajio region states such as Jalisco, Queretaro, and Guanajuato.