Wire Forming Companies In Mexico – What You Need To Know

Looking for a wire forming company? Mexico is a great place to look for one. In this guide, we’ll talk about:

• The benefits of manufacturing in Mexico
• How to find a good wire forming company in Mexico
• How to review a supply agreement
• The cultural tips and tricks to keep in mind when doing business in Mexico

The Benefits Of Manufacturing In Mexico

Your business’s success hinges on several factors. One of the factors is your contract manufacturer’s location. For U.S. and Canadian auto parts manufacturers, Mexico is an ideal location for many reasons:

• Short supply chain: With Mexico in the same continent as the U.S. and Canada, the supply chain is short. You’ll get your order much faster from a Mexican wire forming company than one across the ocean. The shipping costs are lower, and there’s less opportunity for disruption.
• Convenient factory visits: Mexico’s proximity to the U.S. and Canada will save you a lot of money in travel costs. Also, there’s no jet lag when you fly to Mexico. Chances are your Mexican contract manufacturer is in the same time zone as you. The short and affordable flights and lack of jet lag make factory visits in Mexico easy.
• Highly skilled employees: Many manufacturers in Mexico use skilled and knowledgeable employees. Technical education in Mexico is quite strong. Mexico produces more of the following degrees per capita than the U.S. and many other countries:
  • Construction
  • Engineering
  • Manufacturing
• Low shipping costs: It’s much cheaper to ship an order from Mexico than overseas. Also, many Mexican manufacturers allow you to order in small volumes. When you buy from an overseas manufacturer, you usually have to order full containers. This article about wire forming costs covers shipping costs in more detail.
• The lowest labor costs in the world: Even though Mexico has skilled employees, it has some of the lowest labor costs in the world. Many wire forming companies will pass the savings along to you.
• Strict intellectual property laws: Intellectual property theft is a problem in many east Asian countries. It’s because these countries don’t have stringent laws to protect you. Mexico designed its intellectual property laws to protect you from intellectual property theft.
• Socially responsible manufacturing: Labor exploitation is an issue in many east Asian countries. If socially responsible manufacturing is important to you, look into Mexico. The labor laws in Mexico are:
  • Stringent
  • Like the laws in the U.S. and Canada

Finding A Good Wire Forming Company In Mexico

Mexico is a great place to look for a wire forming company. Yet, not all wire forming companies offer the quality and level of service you’re looking for.

If you know what to look for in a wire forming company, you can narrow down your options to the very best ones. This guide will help you look for the right attributes in wire forming companies. In a nutshell, the attributes are:

• Experience
• Continuing investment in facilities
• Continuing investment in people
• Partnerships
• Quality certifications
• Environmental, labor, and intellectual property standards

Interviewing Wire Forming Companies In Mexico

When you have a short-list of reputable wire forming companies in Mexico, it’s time to narrow down your options. To do this, schedule a meeting with each company and then ask them questions about:

• Their financial health
• How often they invest in new equipment
• Their wire forming experience and methods
• Their practices for managing intellectual property

Reviewing The Supply Agreement

When you decide on a wire forming company, the next step is to sign a supply agreement together. The wire forming company will draft it up. It’s always wise to give the supply agreement a thorough review before signing it. While reviewing the supply agreement, see if it covers the following areas:

• Your business requirements
• The wire forming company’s business requirements
• Legal recourse you’re allowed to take in case of a breach
• A bill of materials
• An approved vendor list
• Quality requirements
• Product warranty
• Contingency plans for delivery delays

Cultural Tip And Tricks

As soon as the ink on the supply agreement is dry, you’re in business with a Mexican wire forming company! That means you’ll be doing a lot of meetings with the company in Mexico.

To keep your relationship with the wire forming company amicable, take the time to learn some of Mexico’s customs. This article has cultural tips for doing business in Mexico.

Do you still have questions about finding a good wire forming company in Mexico? Please contact us. We’ll be more than happy to answer your questions about why nearshoring to Mexico with Intran is better.