Mexico is successful in gaining the attention of manufacturers across the world. The country has become a rising star in the manufacturing world for its low cost, flexible regulatory systems, quality workforce, and the convenience of trading to North America and European markets. In spite of the threats of tariffs related to the existing immigration complexities in the US., Mexico manages to be a vital contender for the global companies looking for traffic mitigation in China or simply diversifying of their supply chain. As per the indication of Inbound Logistics, Mexico is steadily becoming a demanding option for all types of manufacturing industries that want to reduce operational costs without compromising the quality.

If you look at the stats, you will find that the supply of Mexican goods to the U.S. rose 5.4 % only in a quarter from the year-early period. On the other hand, U.S. Census Bureau reveals that the supply of Chinese goods decreased by 15%.

Mexico was always popular for the automotive, aerospace, and electronics industries. These days, it is also known for manufacturing and assembly of office furniture, stamping and metal mechanics, and textiles. This rising popularity is also increasing the demand for Mexican sourcing.


Market Movement

Big companies, such as one of the largest Chinese television manufacturers, is inviting more suppliers to Mexico as it intends to switch the production of all U.S.-centric flat-screen TVs to its biggest plant outside China. Another big venture, GoPro also aims at producing all U.S.-based cameras in Guadalajara, Mexico. Cosmetics Colors, a renowned Mexican cosmetic manufacturer company recently received a €7 million order from a world-famous European cosmetic giant. Earlier, their products were manufactured in China.

What makes Mexico the best choice for the manufactures? Among many reasons, a set of flexible laws is the most vital one. These laws are helping foreign companies to team up with Mexican companies in different configurations. The core of Mexican manufacturing law is the “Border Improvement Program.

In Mexico, the manufacturing costs depend on the specific relationships and the concerned process. Also, the cost depends on the goals of the manufacturers.


Mexico vs China – Advantages of Considering Mexico

Market experts have started analyzing the forces working behind the shift of the manufacturer’s interest from China to Mexico. As an outcome of their research works, many points are coming to light that clearly shows why Mexico can be considered as a better option than China. Listed below are some advantages pointed by the experts that make Mexico the better choice for the manufacturers:

  • Mexico’s Intellectual Property Protection Law is like that of the U.S. and Canada
  • Convenient time zones for U.S. and Canadian companies
  • Affordable travel costs
  • Efficient workforce
  • Lower labor costs


A Final Takeaway

Mexico’s environment is favorable for the manufacturers. Moreover, flexible legal issues and ample scopes of affordable Mexican sourcing opportunities are added benefits. That’s why companies across the globe are inclining towards the country. In the next five years, Mexico will enjoy remarkable growth in the economy due to its rising demand in the manufacturing industries worldwide.

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