Mexico-based suppliers are reaching the ground in global manufacturing; it is one of the largest exporters in the world and has many opportunities to source from. It is no surprise that Mexico is the top trading partner of the United States and exported more than USD 500 BIllion worth of goods in the past year.
Because of its shared border, Mexico offers many competitive advantages due to which more and more OEM procurement consulting companies are considering doing business in Mexico. In this article, we’ll discuss why outsourcing to Mexico is becoming a popular choice for companies.
Sourcing in Mexico can be the best option to work with – reflecting the top norms of Mexican culture, they are friendly, genteel, courteous, sociable, and are less prone to trying to trick you with fake products or finding some way of cheating you.
Mexico is a highly attractive platform for all business sectors, including manufacturing and product sourcing services. Mexico's macroeconomic stability, high domestic market, growing consumer base, growing skilled labor pool, welcoming business climate, Supplier Management Services and proximity to the United States all help attract foreign investors.
Industries that do powerful will get benefit from the following competitive advantages:
Mexico is the best alternative to China Manufacturing, for many reasons. There are a wide variety of products that are manufactured in Mexico. Including clothing, textiles, apparel, electronics, appliances, medical devices, automobiles, and much more. Therefore a number of industries are moving their manufacturing to Mexico, the most highlighted industries in Mexico are the aviation and aerospace, automotive, medical device, textile, and consumer products industries.
The automotive manufacturing industry in Mexico has played an important role in the growth of the economy over the past years, attracting some of the world’s largest assemblers like Chrysler, Fiat, Ford, GM, and Toyota to name a few.
The aerospace manufacturing industry in Mexico is a top-performing sector and an excellent example of overall growth according to Export.gov..
Over the past years, some 650 medical device manufacturers have leveraged nearshore operations along the U.S./Mexico border regions, which is responsible for adding around 149,891 to the workforce and over $10.02 billion annually in exports.
One of Mexico's largest manufacturing industries, apparel/clothing, and textile manufacturing, accounts for 4.1% (1.8% in textiles and 2.2% in apparel) of Mexico’s manufacturing GDP.
Consumer products are now manufactured in Mexico _As manufacturing costs rise in China or Contract manufacturing in Mexico, manufacturers are moving their operations to Mexico for a variety of cost-efficient reasons.