Wednesday, June 23, 2010

Manufacturing Coming Back to Mexico

Recently I've come across several articles that discuss how many American companies are bringing their manufacturing BACK to Mexico from Asia.  While many people considered China to be the lowest cost option for their manufacturing needs, China has now surpassed Mexico in terms of manufacturing affordability.

One of the great advantages that Mexico has over China when it comes to outsourcing is its proximity to the US.  Need an emergency shipment?  Your goods can be flown in within a couple of hours.  Another huge advantage are that the US and Mexico share the same time zones.  Most of Mexico is on Central time, which makes working with both coasts very easy.  When you are under tight deadlines, having to stay up late or wait an entire day for a response can break you.

1 comment:

  1. Outsourcing back to Mexico from China is really a good result. Most of the companies realize that it is less costly to outsource Mexico than to China. Workforce in Mexico is affordable with hourly labor rates and of course its proximity to USA and above all the NAFTA agreement allowing duty free exports to USA.