How much does it cost to build a factory in Mexico?

Unless you have the right financial information, determining your Mexico manufacturing strategy is similar to playing a game of chance. Acquiring accurate information about factories in Mexico – such as the current costs of operation and how those costs may change over time – can be challenging for a number of reasons.

Why are Mexico manufacturing costs so difficult to determine?

Reason 1: Many of Mexico's published sources like the national statistics agency Instituto Nacional de Estadística y Geografía (INEGI) provide data that can be two or more years old.  Inflation, foreign exchange, and market dynamics fluctuate with time and can make this information unreliable for financial projections.

Reason 2: Costs can vary by location, but much of the available data is aggregated on a broad geographical basis.  Unskilled wages and benefits, for example, typically vary by neighborhood, and not just by municipality or region.

Reason 3: National differences, such as manufacturing in Mexico vs. USA, can be difficult to estimate for those unfamiliar with factories in Mexico. Cultural, regulatory, and demographic factors can affect the way costs are calculated and the risks businesses face.

Where do I turn for reliable financial data on manufacturing costs in Mexico?

Tetakawi advisers support more than 75 foreign companies currently operating in Mexico and can provide you with the tools to accurately estimate the costs. We provide a backbone for financial comparison, risk analysis, and pro forma budgets using proprietary cost modeling software, which compiles and interprets:

  • Daily statistics from companies employing more than 24,000 people
  • A wide range of industries, covering multiple locations throughout Mexico
  • Real-time data on wages, benefits, salaries, utilities, logistics, expenses and more
  • Surveys, published data, and field studies from real operations
  • Your unique inputs and raw material costs

Working with a trusted adviser can make the cost estimation process easier. Does your organization need to:

  • Make a go/no-go strategic decision on Mexico manufacturing?
  • Prepare a detailed cost budget for Mexico?
  • Compare manufacturing costs in different global locations?
  • Understand more about cost factors for manufacturing in Mexico?
  • Provide pricing for products manufactured in Mexico?
  • Prepare a business plan for Mexican investment?
  • Implement a tool that provides cost analysis for Mexico manufacturing?

 

How can Tetakawi help you estimate your costs in Mexico?

Tetakawi can guide your team through a 4-hour exercise that explains the key cost factors in Mexico, teaches you common pitfalls to avoid, and gives you access to our proprietary cost modeling software. The course also guides your team through a sample cost estimation using your input data, so that you leave with a completed cost forecast and the tools to create new scenarios on demand.

Understand your Mexico manufacturing costs!

Get more information on the financial feasibility of expanding in Mexico.