Outsourcing And Green Manufacturing In Mexico
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.
Mexico has made CO2 reduction a major focus, taking a leading role among developing nations to cut pollution tied to climate change. The country has also set up challenges like the Cleantech Challenge to encourage greener practices.
With many volcanoes, Mexico has the potential to be one of the world’s largest generators of geothermal energy.
On top of all that, here are three more reasons outsourcing manufacturing to Mexico is a green option.
1. A Shorter Supply Chain, Nearshoring
Intran’s facilities in Cuernavaca, Mexico, are about 2,000 miles from Chicago. The distance between Chicago and Shanghai is more than three times that (over 7,000 miles, to be exact). That’s a whole lot of fuel and travel time to get to China.
Outsourcing to Mexico, your next-door neighbor if you are located in the USA, cuts down on resource usage, which reduces carbon footprint. As an added bonus, you don’t have to worry about the potential hassles of a long supply chain. This sums up the benfits of near shoring.
2. Strict Environmental Regulations
Mexico has implemented strict regulations on water pollution, air pollution, and waste management. While many countries have enacted environmental laws, compliance is inconsistent. In Mexico, compliance is not optional.
When sourcing manufacturing goods, the environmental standards of the source country is important. Having your products manufactured in Mexico means your business will not contribute to air, water, or land pollution.
3. Rapid Growth Of Innovative Green Technology
In Mexico, people and companies are conjuring up innovative green solutions left and right. The country is leading the Latin American region in solar technology, and investment in wind energy is substantial. Mexico is also a global leader in geothermal energy generation.
As part of the energy reforms of 2013, funds have been allocated for renewable energy technology research, renewable energy incentives for consumers, and subsidies for investments. Mexico has also opened the energy market to foreign investors, encouraging innovation.
The Reynosa wind farm in Mexico is one of the largest wind farms in Latin America.
Summing Up
With a short supply chain, honest environmental regulations, and a major emphasis on green technology, Mexico is an excellent option for any US or Canadian company looking to outsource manufacturing. Contact us to learn more about our contract manufacturing services.