Why Manufacture in Mexico?
Mexico's Competitive Market
Mexico is your best option to Manufacture because it is one of the most competitive countries in the world. It is considered the 8th largest manufacturing economy and when you have low cost, great skills base, and amazing employee attitude, then manufacturers experience more productivity, higher efficiencies, and ultimately more satisfied customers.
Mexico provides you an opportunity to save money, you can save up to 80% in your labor costs coming to Mexico.
Mexico is one of the top trading partners for the USA and now with the USMCA (formerly NAFTA) in place, this pushes more reasons, as why Mexico is a great place to Manufacture. 40% of every dollar that cross the US/MX border for trade is of US origin. Meaning that at least 40% of products crossing the US/MX border has a product/component that was made in the USA, whereas in China, it is only 3-4%. Mexico helps US business grow, and Javid will help your company grow by focusing on what matters most – Production.
With close proximity to the USA border, you will see your product entering the USA in less than 24 hours, which provides a quick turnaround to your products.
Another of the great things about Mexico, and manufacturing in Mexico, is the ability to receive Tax incentives for IMMEX Companies, (Manufacturing Companies): No VAT.
The country has developed and prepared itself to provide a "Soft Landing" culture to help international manufacturers to start up operations in Mexico with fast-track, risk-free Mexican Shelter Service Program.
Labor & Logistics
Mexico has a 1,954 mi (approx. 3,200 KM) border with the US, which allows for low transportation costs to the North American market. There are 52 access points between the US and Mexico.
Mexico has a modern highway network that allows efficient communication with sea ports on the Atlantic and Pacific Oceans.
In summary, Mexico has:
85 airports (26 domestic and 59 international airports)
117 sea ports
16,500 Miles of railroads
About 230 thousand miles of roads
Labor in Mexico is well educated and has a "Can-Do" attitude. Having a great educational competency, the labor force in Mexico presents a positive manufacturing workplace attitude. Mexico has a layered educational system that merges the gaps between the knowledge received in high school and the knowledge received in a college degree to offer a trade-specific skills development and degrees similar to those found in the U.S. community college system. Federal and state-funded schools like the Insituto Tecnologico (IT) and Universidad Tecnologica (UT), work together with the industry to provide the needed educated labor force.
In Mexico, the fully-fringed compensation for low-skilled factory workers is approximately 80% lower than the USD $12 per hour wage typically found in the U.S. or other similar high-wage countries.
In Mexico it is very common to see the use of robotics, automation, six sigma, lean, ISO and other industry-specific quality standards. Also, those skills in most cases were develop and implemented here in Mexico first.