With new changes in trade regulations and extensive discussion about NAFTA, the Mexican manufacturing industry is right now undergoing a lot of scrutinies. The outcome is that myths are heaped on the region’s manufacturing sector and are causing huge disruptions in the sourcing market. Therefore, the people who were considering Mexico sourcing are now having second thoughts and wondering whether it will be a good idea to invest in the region. Given the context, it is important to shed light on this topic and enlighten people with the truths behind the myths that are making investors jittery. So, read on to know the truths as we debunk the myths. 

So, what are some of the myths about Mexican sourcing service companies? Let us check them out here. 

Myth 1:  Trade relations with Mexico hurt United States workers 

While it is true to some extent, however, the fact is that the manufacturers based in Mexico have shifted from the US to establish a relationship with Mexican organizations. Why so? Because the Mexican organizations showed interest to work at low production costs and that resulted in the reduced cost price of goods. Thus, this would eventually benefit the US customers as they will get more value for their dollars. So, you can say that sourcing from Mexico will majorly benefit the US customers and may only hurt a few workers. 

Myth 2:  Mexican manufactured goods are of low quality 

Given that most Mexican manufacturers are required to get certified under International Organization for Standardization, they are bound to meet quality standards. ISO certification requires audits on the performance and quality of the products. Thus, it is likely that Mexico manufactured products are extensively documented and reviewed to ensure that they are of high quality. 

[Text Wrapping Break]Myth 3: Mexican manufacturers are slow to respond to phone calls and emails 

Since at least when the NAFTA agreement has been signed, the Mexican manufacturers are affluent in working with global countries. Since Mexico manufacturers are known to respect other cultures and effective communication is practised in the region, this is just a rumour. However, you must always be cautious while sourcing from global destinations, and ask these questions before agreeing to the contract- 

  • When can you expect an email reply or get a call back from the manufacturers? 
  • Who will serve as the point of contact when you face a problem? What is the solution when that person is unavailable? 
  • What is the solution if you have a query beyond the service hours? Who to call? 

Myth 4: Goods Purchased from Mexican manufacturers solely benefit Mexican companies 

Basic analysis reveals that in trade between US and Mexico the misconception that generally prevails that investing in Mexican goods means that no value is earned in return is incorrect. Figures imply something else that is 40 cents of a dollar spent on sourcing Mexican goods come back to the US. This is simply because most Mexican based companies buy raw materials, machinery, equipment and other resources from the US, as stated in a report from LA Times. 

Take away 

So, these are some of the false acquisitions that are tainting the Mexican industries. Now that you know the truths behind these baseless rumours, hopefully, you will not delay sourcing from Mexico. For better understanding and support you can always contact top sourcing agencies who can help you to navigate the market like an expert. 

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