Known for its sandy beaches, exquisite cuisine, and delicious margaritas, Mexico is also gaining recognition as the go-to country for cost-savings manufacturing.
With its convenient location, advanced manufacturing technology, and highly-skilled workforce US companies are reevaluating their logistics and moving production to Mexico in search of reducing overall manufacturing costs and gaining a competitive edge.
Once the leader of consumer electronics manufacturing, China is losing business to Mexico, who in recent years has shown growth and expansion in this area. With prototypes and aftermarket services rated superior to China’s, Mexico is the second largest supplier of electronics to the US market, especially with mobile technology.
Like in real estate, location is key and in this case, Mexico has won with its close proximity to the US. By moving manufacturing into Mexico, manufacturers are able to save on production costs with the Maquiladora program which creates a trade-free zone. This allows manufacturing equipment and materials for assembly to be imported tax free into the country, enticing manufactures to move their operations into Mexico.
When you add to the mix innovative technology advancements and a vast pool of educated, skilled workers, it’s no wonder Mexico now ranks as a leader of consumer electronics manufacturing.