{"id":1803,"date":"2020-11-30T17:25:38","date_gmt":"2020-11-30T17:25:38","guid":{"rendered":"https:\/\/www.intran.mx\/?p=1803"},"modified":"2020-12-22T15:59:11","modified_gmt":"2020-12-22T15:59:11","slug":"reshore-auto-parts-manufacturing-to-mexico","status":"publish","type":"post","link":"https:\/\/www.intran.mx\/reshore-auto-parts-manufacturing-to-mexico\/","title":{"rendered":"Why It&#8217;s Time To Reshore Auto Parts Manufacturing To Mexico"},"content":{"rendered":"\n<p>Are you looking for a new contract manufacturer? Maybe your company is starting to outsource manufacturing. Or maybe a contract with a manufacturer is about to expire, and you don&#8217;t want to renew it. Either way, you may want to consider reshoring to Mexico.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p><\/p>\n\n\n\n<p>Manufacturing in Mexico is a much better option than:<\/p>\n\n\n\n<ul><li>In-house manufacturing at a US or Canadian facility<\/li><li>Manufacturing in an overseas country<\/li><\/ul>\n\n\n\n<p>Here are 7 reasons why:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Shorter, Less Complicated Supply Chain<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"476\" src=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2018\/08\/truck-vitpho.jpg\" alt=\"Truck driving\" class=\"wp-image-890\" srcset=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2018\/08\/truck-vitpho.jpg 800w, https:\/\/www.intran.mx\/wp-content\/uploads\/2018\/08\/truck-vitpho-250x149.jpg 250w, https:\/\/www.intran.mx\/wp-content\/uploads\/2018\/08\/truck-vitpho-768x457.jpg 768w, https:\/\/www.intran.mx\/wp-content\/uploads\/2018\/08\/truck-vitpho-700x417.jpg 700w, https:\/\/www.intran.mx\/wp-content\/uploads\/2018\/08\/truck-vitpho-120x71.jpg 120w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>When you reshore manufacturing, the supply chain is a big factor to consider. If choosing between Mexico and an overseas country far, far away, Mexico is the clear winner. It&#8217;s because the supply chain is much shorter.<\/p>\n\n\n\n<p>You want the supply chain to be as short as possible. Minimal transportation helps your company remain competitive. Whether you&#8217;re an US or Canadian company, nearshoring to Mexico guarantees a short supply chain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Benefits Of A Short Supply Chain<\/h3>\n\n\n\n<p>A short supply chain comes with many different benefits, including:<\/p>\n\n\n\n<ul><li>Fast shipments<\/li><li>Lower shipping costs<\/li><li>Fewer supply chain issues<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">A Long Supply Chain Makes Everything Complicated<\/h3>\n\n\n\n<p>When you outsource manufacturing to an overseas country, you&#8217;ll deal with a long supply chain. It&#8217;s common to deal with the following issues with a long supply chain:<\/p>\n\n\n\n<ul><li>High shipping costs<\/li><li>Significant production delays<\/li><li>Significant shipment delays<ul><li>It&#8217;s common for overseas shipments to be held in customs for a few weeks<\/li><\/ul><\/li><li>Higher likelihood of supply chain issues<\/li><\/ul>\n\n\n\n<p>Such issues can hurt your company&#8217;s reputation. For example, shipment delays can keep you from meeting deadlines with your clients. That can make your company look bad.<\/p>\n\n\n\n<p>COVID-19 is in the picture now, and that makes overseas shipping even worse. This is because:<\/p>\n\n\n\n<ul><li>Many shipping lines reduced their capacities and routes<\/li><li>Some countries are holding ships until their crews are virus free<\/li><li>Some countries are taking screen measures<\/li><\/ul>\n\n\n\n<p>All these changes are causing significant delays in overseas shipping. And who pays the price? Your company does. You don&#8217;t have to worry about this problem if you nearshore to Mexico.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The More Shipping Options, The Better<\/h3>\n\n\n\n<p>If you contract with a manufacturer in an overseas country, you have only two shipping methods to choose from:<\/p>\n\n\n\n<ul><li>Ocean freight<\/li><li>Air freight<\/li><\/ul>\n\n\n\n<p>Each shipping method has its own bag of issues. If you nearshore to Mexico, you&#8217;ll get to choose from more shipping methods, including:<\/p>\n\n\n\n<ul><li>Air freight<\/li><li>Truck<\/li><li>Rail<\/li><li>Ocean freight (over a much shorter distance)<\/li><\/ul>\n\n\n\n<p>These shipping methods are much safer and simpler than long distance overseas shipping. <a href=\"\/freight-moving-time\/\" target=\"_blank\" rel=\"noreferrer noopener\">This infographic<\/a> provides a visual representation of this.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. The United States-Canada-Mexico Agreement<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"344\" src=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/09\/nafta-flags.jpg\" alt=\"nafta flags\" class=\"wp-image-1711\" srcset=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/09\/nafta-flags.jpg 800w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/09\/nafta-flags-250x108.jpg 250w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/09\/nafta-flags-700x301.jpg 700w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/09\/nafta-flags-768x330.jpg 768w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/09\/nafta-flags-120x52.jpg 120w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>In July 2020, the US, Canada, and Mexico entered a new trade agreement. The agreement makes nearshoring to Mexico easier than ever for US and Canadian companies. It&#8217;s designed to encourage more cooperation between the three countries, especially when it comes to auto parts manufacturing. For example:<\/p>\n\n\n\n<ul><li>The US agreed to make Mexican and Canadian manufacturers exempt from any future tariffs on certain auto parts.<\/li><li>The agreement requires that after 2023, 75% of parts in American vehicles must be made in North America.<\/li><\/ul>\n\n\n\n<p>That means if you stick to or reshore to an overseas country, you&#8217;ll face some problems. For instance:<\/p>\n\n\n\n<ul><li>You may need to pay tariffs to have the parts shipped to the US or Canada.<\/li><li>Many North American automakers will hesitate to put your parts into their vehicles because your parts aren&#8217;t made in North America.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">3. Time Zone Proximity<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"445\" src=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/time.jpg\" alt=\"time zone\" class=\"wp-image-1783\" srcset=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/time.jpg 800w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/time-250x139.jpg 250w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/time-700x389.jpg 700w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/time-768x427.jpg 768w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/time-120x67.jpg 120w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Mexico shares several of the same time zones as the US and Canada. That means if you sign with a Mexican manufacturer, they might be in the time zone as you. At most, they&#8217;ll be about 2 time zones away from you. That&#8217;s a great advantage because:<\/p>\n\n\n\n<ul><li>You can have real time communication between you and the manufacturer<ul><li>You and the manufacturer will be working during the same business hours<\/li><\/ul><\/li><li>There will be less travel time for executives who need to visit the manufacturer&#8217;s facilities<\/li><\/ul>\n\n\n\n<p>If you work with an overseas country a few thousand miles away, you&#8217;ll face some issues like:<\/p>\n\n\n\n<ul><li>Jet lag<\/li><li>Delayed communication<\/li><li>Very late night or early morning phone calls<\/li><li>Long travel times<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">4. Affordable And More Skilled Labor<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"448\" src=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/skill-labor.jpg\" alt=\"skilled labor\" class=\"wp-image-1765\" srcset=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/skill-labor.jpg 800w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/skill-labor-250x140.jpg 250w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/skill-labor-700x392.jpg 700w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/skill-labor-768x430.jpg 768w, https:\/\/www.intran.mx\/wp-content\/uploads\/2020\/10\/skill-labor-120x67.jpg 120w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Did you know that <a href=\"\/mexico-better-parts-manufacturer\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mexico&#8217;s workforce is outpacing China in terms of productivity<\/a>? Not only that, but also Mexico&#8217;s labor has grown to be more affordable than China&#8217;s. The labor in Mexico is very skilled. In fact, Mexico turns out more manufacturing, engineering, and construction degrees per capita than the US and many other countries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. Fair Labor Laws In Mexico<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"482\" src=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2019\/08\/gov.jpg\" alt=\"mexico flag\" class=\"wp-image-1184\" srcset=\"https:\/\/www.intran.mx\/wp-content\/uploads\/2019\/08\/gov.jpg 800w, https:\/\/www.intran.mx\/wp-content\/uploads\/2019\/08\/gov-250x151.jpg 250w, https:\/\/www.intran.mx\/wp-content\/uploads\/2019\/08\/gov-768x463.jpg 768w, https:\/\/www.intran.mx\/wp-content\/uploads\/2019\/08\/gov-700x422.jpg 700w, https:\/\/www.intran.mx\/wp-content\/uploads\/2019\/08\/gov-120x72.jpg 120w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p>Socially responsible manufacturing is very important. The Mexican government takes it very seriously. The Mexican government enforces labor laws that are quite similar to those in the US and Canada. <a href=\"\/manufacturing-labor-laws-norms\/\" target=\"_blank\" rel=\"noreferrer noopener\">Labor abuse is a problem in many overseas countries<\/a>. So if you contract with an overseas manufacturer, you may be contributing to labor abuse and exploitation. You don&#8217;t have to worry about this problem if you reshore to Mexico and contract with a reputable company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Intran Is A Leading Auto Parts Manufacturer In Mexico<\/h2>\n\n\n\n<p>At Intran, <a href=\"\/our-capabilities\/\" target=\"_blank\" rel=\"noreferrer noopener\">we offer many different services<\/a>. If you&#8217;re interested in any of our services, get in touch with us to get the ball rolling!<\/p>\n","protected":false},"excerpt":{"rendered":"Are you looking for a new contract manufacturer? Maybe your company is starting to outsource manufacturing. Or maybe a contract with a manufacturer is about to expire, and you don&#8217;t want to renew it. Either way, you may want to consider reshoring to Mexico.","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[8],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why It&#039;s Time To Reshore Auto Parts Manufacturing To Mexico | Intran<\/title>\n<meta name=\"description\" content=\"If You\u2019re Looking For A New Contract Manufacturer You Should Consider Reshoring To Mexico - Here\u2019s Why.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.intran.mx\/reshore-auto-parts-manufacturing-to-mexico\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why It&#039;s Time To Reshore Auto Parts Manufacturing To Mexico | Intran\" \/>\n<meta property=\"og:description\" content=\"If You\u2019re Looking For A New Contract Manufacturer You Should Consider Reshoring To Mexico - 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