When most people think of products made in Mexico, they think of avocados, tequila, and maybe the pickup truck in their driveway. They’re not wrong — Mexico is the world’s fifth-largest vehicle producer. But automotive is one segment of a manufacturing base that now includes Class III medical implants, turbine blades for commercial jet engines, … Continued
Across Tetakawi’s 60+ manufacturing operations, clients pay an average of $0.117 per kWh for industrial electricity in Mexico. That puts Mexico in the middle of the North American pack: cheaper than Michigan or New York, roughly equal to Tennessee and Illinois, more expensive than Texas or Quebec. The rate is competitive. But the rate is … Continued
Manufacturing in Mexico is how more than 5,000 foreign companies produce goods for the North American market. Competitive labor costs, integrated supply chains, and preferential trade access to 52 countries through 14 free trade agreements make it the most established nearshore manufacturing platform in the Western Hemisphere. In 2024, U.S.-Mexico bilateral trade reached $806.1 billion, … Continued
The incentives of operating close to the US, the world’s largest consumer base, have fully tipped the scales in Mexico’s favor. An increasing number of companies, including many Chinese companies, have made the tough decision to pull manufacturing out of China and into Mexico to support the US market better. These manufacturers find that Mexico’s … Continued
Before companies manufacturing in Mexico can make the most of the country’s comprehensive free trade agreements and begin to ship their products worldwide, there is a trade hurdle to clear: customs. Understanding import and export compliance and Mexican customs regulations is a critical piece of any logistics operation for manufacturers operating in Mexico. Navigating the complexities … Continued
In navigating the complexities of global supply chains, companies are increasingly turning to strategic outsourcing strategies to optimize their operations and enhance competitiveness. These outsourcing strategies extend beyond traditional manufacturing to encompass a spectrum of business functions, including customer support, IT services, and back-office operations. By leveraging specialized service providers in offshore destinations like Mexico, … Continued
Nearshore manufacturing in Mexico fosters a paradigm of cross-border collaboration, where companies strategically align with partners across international boundaries to optimize production processes and supply chain efficiencies. By establishing manufacturing operations in Mexico, companies can leverage the expertise and resources of local partners while maintaining close coordination with their home offices. This collaborative approach facilitates … Continued
Mexico’s thriving manufacturing landscape offers lucrative opportunities for companies considering offshore manufacturing. With its strategic location, skilled workforce, and favorable trade agreements like the USMCA, Mexico has emerged as a top destination for offshore manufacturing operations. The top three manufacturing sectors in Mexico–the automotive, aerospace, and medical device industries–have capitalized on Mexico’s advantages, leveraging its … Continued
Manufacturers weighing an expansion to Mexico may already know the advantages. But what about the disadvantages? Understanding potential trade-offs upfront can help you ensure you make the right decision for your organization. Manufacturing in Mexico presents numerous advantages and challenges, particularly concerning the manufacturing labor force. One of the key advantages lies in the competitive … Continued
Expanding to Mexico creates benefits for manufacturers by the numbers, but the benefits of offshoring for consumers are frequently overlooked. Offshoring in Mexico not only means more efficient and low-cost manufacturing for the company itself, but also results in more affordable products for the consumer. Holistic offshoring advantages can be exponential, depending on the industry … Continued
