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:

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.

Proximity

mexico

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:

• Flights are more inexpensive and faster. For example, while a flight to Shanghai from US will take a whole day, you can achieve it from Mexico in just a few hours. Also,the tickets of the flight to and from Mexico are priced advantageously in comparison to tickets to and fro China.

• Time difference is very low. For instance, when it is 6am in Detroit, it is 6pm in Shanghai. It means both the nations have to communication outside their normal working hours. While US and Mexico usually has more or less the same work schedule.

Professional workers

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.

Social responsibility

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:

• The Mexican labor laws are same as those in US and Canada. For instance, workweeks in Asia is around 60 hours while in Mexico, it is 48 hours.

Mexico offers rigid laws in the field of occupational safety and also has laws against child labor.

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.