How Mexico Manufacturing Contributes to the Global Supply Chain Solution

Article Overview: A reliable supply chain is essential to keep production moving forward. Due to geographical and infrastructural advantages, Mexico manufacturing maintains a strong connection across multiple sectors while also helping global companies save time and costs.

The increase in tariffs and challenges in securing materials have delayed manufacturing projects, putting many on a temporary hold until conditions stabilize. These types of supply chain disruptions have a rippling effect, which is costly to manufacturing companies.

In today’s competitive market, manufacturers must keep momentum going and are constantly considering new strategies to keep production moving forward.

Nearshoring manufacturing to Mexico is (and has been) a smart way for businesses to save costs despite tariff turmoil and supply chain uncertainty. Here’s why.

Faster Shipping, Lower Transportation Costs

Mexico’s proximity to the U.S. is playing a bigger role in the supply chain solution. Increasing tariffs and longer transportation times, combined with the demand to deliver to market faster, make the closeness between the two countries a significant advantage.

This was most recently proven during the global pandemic, when supply chains in China and other global regions were delayed or shut down altogether. Mexico maintained its stability during these years and continues to be less of a logistical risk for manufacturers with a U.S. market.

Additionally, nearshoring manufacturing in Mexico equals quicker delivery times and less expensive transportation costs, easing this lingering burden.

Evolving Logistical Infrastructure

With manufacturing serving as Mexico’s top industry, the country continues to enhance its transportation pathways to prevent supply chain hiccups.

Multiple areas throughout Mexico are easily accessible by train, seaport, and plane, and both Mexico and the U.S. have worked together to strengthen port-of-entry infrastructure to support the flow of binational trade.

Consistent, Cost-Effective Industrial Labor Pool

In addition to logistical and transportation benefits, Mexico continues to maintain a strong industrial workforce. This has been a key driver of growth for U.S. manufacturers expanding production in Mexico.

The consistent availability of highly skilled talent, combined with the lower cost of labor compared to the U.S. and China, continues to create expansion opportunities for manufacturers worldwide.

Maximize Success with a Mexico Shelter Company

As global supply chain disruptions continue to plague the manufacturing industry, manufacturing in Mexico remains a successful strategy that U.S. and other foreign manufacturers have relied on for decades to keep production on par with demand.

If you’re considering the advantages this solution provides, it’s best to work with a Mexico business shelter that offers local expertise, access to supply chain networks, and a full suite of administrative services and support to launch production faster.

IVEMSA can help you determine if Mexico manufacturing makes sense as the next move for your company and how its shelter services can serve as an advantage.

To get the discussion started, contact our team today.

Source:
https://www.statista.com/statistics/186601/ranking-of-the-largest-trading-partners-for-us-imports/