American companies have been gaining a lot of benefits of manufacturing in Mexico for the past several decades. After the United States-Mexico- Canada Trade Agreement, companies in the United States can establish their manufacturing units in Mexico. Here are some of the benefits of manufacturing in Mexico:
Better labor costs
One of the most known advantages of manufacturing here is the price and quality of its workforce. Due to the worldly economic conditions, wages in Mexico are around 3/5th of what they are priced in China. It means that you can price an average labor wage rate around US $2.50 to 3.00 per hour. Another advantage is the quality of the labor force. On an average, Mexico graduates around 120,000 engineers from its universities and technological institutes which more per capital than USA.
Supply Chain Length and Price
A company availing the advantages of manufacturing in Mexico has a supply chain which is the fraction of the length which it would be in any other location around the world. It may be tough to fulfill rush orders from Far East, spare parts, assembling parts and finished products can be transported from Mexico to US clients by truck in just 2-3 days.
Safety of intellectual property
As per the Industry Week, Chinese companies are responsible for around 80% of the intellectual property theft experienced by firms of US. A major benefit of manufacturing in Mexico is that the nation protects IP with regulations which are same as those enforced by USA and by Canada.
As Mexico lies in close geographical proximity to America, it offers yet another benefit to companies. Producing products in Mexico in comparison to any other distant local gives you a number of advantages:
Top notch manufacturing in Mexico by global companies has been going on for the past five decades. For over two generations, Mexican workers have been producing items which are consumed globally.
Another advantage of producing in Mexico is that the nation is socially responsible with regards to its workers and the product it produces. It is socially responsible for the reasons given below:
Mexico offers a pro-business attitude to all types of companies. So, if you are looking forward to set up an operation in Mexico, then contact American Industries Group for help.