Manufacturing In Mexico
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Why manufacture in Mexico?
Manufacturing in Mexico is becoming more popular than ever. It is not just an option now but a necessity to remain competitive. The current macroeconomic environment is driving companies away from China and into Mexico through a phenomenon known as “nearshoring. ” This relocation of supply chains began with Covid-19 and was accelerated by the tensions between East and West.
The answer to why manufacture in Mexico is straightforward. With business becoming more complex in China, manufacturing in Mexico is a natural choice. Mexico has proximity to the United States, coupled with a 3,000 km (1,865 miles) border, makes it the best choice for relocating factories. This is the reason why the Mexican government issued the IMMEX program in 2006, to let maquiladoras in Mexico import raw materials free of duties and VAT.
What Makes Manufacturing in Mexico So attractive?
Manufacturing in Mexico will give you an unbeatable advantage in selling to the American market. The country’s proximity to the US and wide border makes supply chain logistics a breeze. By some estimates, the shipping times are up to 80% less when compared to China.
Whatever you are looking to transport, all you need is trailer trucks. And if you choose one of the many bordering cities to manufacture in Mexico, you could be a couple of hours away from your distribution center.
Manufacturing in Mexico: Supply Chain & Logistics
Mexico’s Free Trade Agreements have pushed the country to become the 13th-largest export economy in the world. When manufacturing in Mexico, you get access to trade agreements in three continents, Mexico is positioned as a gateway to a potential market of over one billion consumers and 60% of world´s GDP. Certain treaties avoid double taxation between Mexico and other countries including the U.S., Germany, Canada, Sweden, France, Japan, Brazil, China, United Kingdom, Italy and more.