Manufacturing overseas gives companies access to lower labor costs, larger talent pools, greater production capacity, and diversified supply chains. These advantages have driven offshore production for decades — and they’re still real in 2026.But the math behind those advantages has shifted dramatically. US tariffs now exceed 145% on Chinese goods, sit at 25% on non-USMCA-compliant … Continued
10% Current Section 122 surcharge on non-USMCA Mexican imports (may rise to 15%; expires ~July 24, 2026) Source: U.S. Trade Act of 1974, Section 122 89% USMCA utilization rate (Nov 2025), up from ~45% in Jan 2025 Source: U.S. Census Bureau trade data About 1/6 Cost of an unskilled operator in Mexico vs. a U.S. … Continued
Why Mexico Dominates Medical Device Manufacturing for the U.S. Market Mexico is the number-one source of imported medical devices in the United States. Not second to Germany, not close behind China. First. The country supplies approximately one-fifth of all devices imported into the U.S. annually, and that position has been strengthening for years as manufacturers … 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
From their beginnings in border-zone Tijuana to today’s 5,821 active IMMEX programs generating over $840 billion in annual US-Mexico trade, maquiladoras have survived every major trade policy shift of the last six decades. That track record matters if you’re evaluating Mexico for manufacturing. Programs that endure through currency crises, trade agreement rewrites, and tariff escalations … Continued
A shelter company provides the Mexican legal and administrative structure through which a foreign manufacturer can set up and run a factory in Mexico. The manufacturer keeps control of production, processes and quality. The provider manages the agreed local employment, administrative and compliance functions. Those functions cover registration with Mexican authorities and monthly filing, a … Continued
If you run a contract manufacturing business in the United States or Canada, you have likely experienced a noticeable shift over the past several years: · Inbound inquiries tied to “China reduction” have increased. · Sourcing teams are revisiting programs that have been offshore for a decade or more. · Customers are asking more pointed … Continued
If you’re a manufacturing executive, uncertainty isn’t new — it’s the job. Tariffs change.Trade agreements get reviewed.Administrations shift priorities.Enforcement tightens, then loosens. So if expanding your manufacturing into Mexico feels like it’s been pushed to the back burner, that’s not negligence; it’s rational caution. Questions like these are legitimate: What happens if tariffs rise again? … Continued
When executives consider expanding into Mexico, the conversation typically centers on cost, supply chain resilience, and proximity. Those factors matter. But one of the advantages most often overlooked, and arguably the one that makes every other benefit sustainable, is Mexico’s system of technical education. This is the story of how Mexico built a workforce engine designed … Continued
Introduction Across the U.S. and Canada, thousands of small and mid-sized manufacturers are at a turning point. Many owners who built their companies over the past 30–40 years are preparing to retire, leaving businesses in the hands of their children or professional successors. At the same time, these companies are confronting a U.S. labor market … Continued
