Did you know that Mexico is a green manufacturing powerhouse? In 2013, Mexico embarked on a major energy reform plan. Since that time, growth in renewable energy output has been dramatic. By 2024, 35% of the electricity used in Mexico will be generated by renewable energy sources.
At the turn of the century, U.S. and Canadian companies started noticing the many benefits of manufacturing in Mexico. Today, over 35 billion U.S. and Canadian dollars have been invested into Mexican manufacturing facilities, and the number of U.S. and Canadian businesses outsourcing to Mexico continues to grow every year.
When automakers look for a place to build their factories, they take into account labor costs, trade agreements, and proximity to their biggest markets. They need to build in a country that will deliver in all three areas.
Working with a contract manufacturer is one of the most important relationships your company will have. The quality of your products play a big part in your company’s success, and the manufacturer you choose has a lot of control over this.
The golden age of ocean shipping costs has come to an end. Over 90 percent of global trade is transported by sea, but that might change soon. This year, we’re seeing the first drastic increase in ocean freight shipping costs since 2010.
Earlier this year, Aftermarket Business World interviewed our CEO, Juan Cintrón, on why the United States should continue outsourcing auto parts from Mexico. Cintrón provides a positive outlook on the future relations between the U.S. and Mexico, but he drives home some realistic and insightful points.
If you run a US or Canadian company that needs manufacturing help, you may be tempted to source production in Asia. While the costs of manufacturing in Asia aren’t always the lowest (in fact, Mexican manufacturing is often the least expensive option for North American companies), there are established manufacturers in Asia that deliver quality and value.
One of the rules of modern manufacturing is to keep everything lean. Don’t order excess raw material. Order only what you need. Don’t ever let parts pile up. Produce only as many as you need. Pay close attention to every step in the supply chain. Trim away any inefficiencies you find.
With so much discussion about NAFTA and changes to trade, manufacturing in Mexico is under some scrutiny. There are many myths and misunderstandings about manufacturing in Mexico. In this article, we debunk four misconceptions for those considering a Mexican plant as part of their supply chain.