Contract manufacturing is an outsourcing of certain production activities that the manufacturer and assembly once performed to a third party. Did you know that thousands of contract manufacturing companies relocated to Mexico?. It is currently a manufacturing facilities boom and has become a prime manufacturing location for Us and Canadian auto parts distributors. Contract manufacturing in Mexico is always a good solution for all those companies who are seeking to cut costs in order to sell competitively in the world’s largest consumer market. It is the most cost-effective way for establishing your contract manufacturing operation in Mexico.
If you are in search of contract manufacturing companies in Mexico or raw materials, then look no further. Mexico has Tier I, Tier II, and Tier III suppliers that can help connect you with.
Mexico contract manufacturing is different from self-sustaining work: a Mexican contract manufacturer controls all the production, charges the foreign manufacturer, and carries all its production assets.
More than years ago, the US companies started relying on contract manufacturing solutions for oem procurement consulting to full fill their production needs. It consumes a low labor cost and is closer proximity while maintaining excellent quality than other countries The most highlighted benefits are as follows:
Mexico came across the same continent as the US and Canada, so the supply chain is short. A short supply chain, which sums up the idea of “near sharing,” comes with many benefits, including:
Traveling to Mexico is less costly than flying to other Asian countries. Not only the cost is a major issue that comes with a face-to-face meeting with your vendor, but you also need to worry about productivity. What if it is necessary to meet with your auto parts manufacturer on a daily basis?. Mexico is the best choice in the same time zone as the U.S. and Canada, give or take an hour or two. Industries that are producing goods in Mexico benefit from:
As compared to the US and other countries, Mexico give rise to more
engineering, manufacturing, and construction degrees per capita. They have stringent labor
laws, and you’ve got a Mexican manufacturing plant with a highly skilled team of employees.
One of the largest benefits of manufacturing in Mexico is its proximity to the US and Canada. It sounds like the shipping cost is much lower than in other countries. Since Mexico is linked by land, Mexican manufacturers can ship via bus or truck. This makes them immune to the rising ocean shipping costs.
The law was updated in 2012, and the new regulations in place are contributing to the growth of manufacturing jobs in Mexico.
While Mexico is one of the best places for manufacturing consulting services, you should still do your due diligence when looking for a Mexican contract manufacturer. Audit your contract manufacturer when it's time to renew your contract.
Here’s what you need to look for in a contract manufacturer:
Are you looking for a contract manufacturer in Mexico?. You can look for many consulting companies that specialize in matching contract manufacturers with clients in the US or Canada. Meanwhile, if you want to find a reliable contract manufacturer in Mexico, you need to go a step further by following this simple process.
Research is most important when it comes to contracting a manufacturer. By conducting research, you’ll be able to find out the questionable contract manufacturers and finish up with a precise list of reputable contract manufacturers. Do your research by covering the following attributes:
Once you get a precise list of reputable contract manufacturers, it’s time to ask them questions to find out which fits your company best. Here are some repeated questions to ask::
When a contract manufacturer sends you a supply agreement, take the time to carefully review it. A good supply agreement covers the following:
Once you sign with a contract manufacturer in Mexico, you need to maintain an effective relationship with them. A pretty major part of it is taking the time to respect and abide by Mexican customs. Those customs include:
If you have any more questions about doing business with contract manufacturing companies in Mexico, you’re more than welcome to contact us.