Real Estate Blog

Now many company move their Manufacturing in Mexico. In this post I will introduce some useful information about mexico manufacturing.

Firstly, I will tell you the advantages of Mexico Manufacturing.

Mexico’s low landed costs are attractive when considered in comparison to other developing country options. It is suited to serve as a manufacturing venue for short to medium-run products that have a high degree of engineered content. Its proximity to the United States enables technical and production personnel to coordinate activities to bridge temporal and physical distances. This nearness to market, as well as to the consumer base, also fulfills the just-in-time requirements of both. Additionally, Mexico’s efforts to enforce patent and intellectual property laws are advanced compared with those in place in other low-cost nations. Political risk associated with the country is minimal.

And the most unexpected, highly appreciated advantage is the mild weather. It saves our clients tons of money because the buildings don’t need to be heated or cooled and humidity is minimal.

All that, plus the beauty, culture and safety of this urban city are advantages that aren’t on the balance sheet, but are extremely meaningful to our clients.

Mexico manufacturers offer scalability that give clients the flexibility and control they cannot get with outsourcing or in building their own facilities.

On the other way, there are some disadvantages.  Although the average wage rate in Mexico is higher than in China and other emerging Asian economies, the workforce in Mexico has a large pool of highly educated and skilled engineers. Also, freight charges from China has significantly increased over the years, which make up for the difference in labor cost. The corruption levels are higher than many low cost European manufacturing centers, however your intellectual property can be protected. Foreigners deal with this by securing good qualified advice from professionals. Mexico has employment laws that impose strong penalties on companies for laying off employees. Joint ventures, shelter companies and other co-arrangements minimize the risk here.