Exploring the Current Outlook of Skilled Manufacturing Labor in Mexico

Key Takeaways: 

• The availability, cost-competitiveness, and range of skilled manufacturing labor in Mexico remain key advantages for companies wanting to expand production.
• With the integration of machine-operated efficiencies, manufacturers now have more options when recruiting qualified employees and less turnover to contend with compared to years past.
• As part of its shelter services, IVEMSA helps manufacturers with recruiting and hiring Mexico’s top technical talent to fulfill each project’s specific positions.

Saving on Labor Costs Between Countries

Labor cost savings have always been a top priority for manufacturers. For decades, U.S. companies outsourced labor to China as part of a money-saving strategy.

However, there’s been a shift over the past several years due to increasing labor costs and tariff tensions between the two countries, which has caused companies to pivot. Many manufacturers now find it more feasible to set up manufacturing in Mexico to benefit from both lower labor costs and a more convenient proximity to the U.S. audience.

Now, another shift is taking place.

Optimizing Efficiency with Fewer Employees

Manufacturers in Mexico want to be productive with fewer people. Currently, companies are considering how to integrate machine-driven efficiencies with human-level knowledge and talent.

This has resulted in a wider pool of qualified labor to choose from, with less of a turnover than in previous years. This benefits manufacturers by offering:

• Employee Stability

Manufacturing employees in Mexico require detailed training based on the scope of the job. When the hiring landscape was more competitive, companies experienced higher employee turnover. Now, the mindset has changed, as employees are looking for long-term commitments. Therefore, newer companies coming in to set up production in Mexico have greater access to a wider talent pool and can be more selective in their hiring process and training investments.

• Realistic Salary Expectations

Despite the increase in automation and AI, manufacturers still benefit from the institutional knowledge and specific technical skills manufacturing employees in Mexico maintain. Therefore, offering competitive salaries is necessary to hire and retain the best workers. Though labor rates remain relatively stable, salaries are reviewed annually to factor in inflation. Manufacturers can also benefit from IVEMSA’s local connections and networks to adjust salary and benefit packages based on current expectations and quickly secure the workers they need for production.

• Opportunities to Scale
  

Since the economic growth in the U.S. isn’t as high as it was two years ago, and Mexico has a greater labor pool of skilled workers to choose from, it’s a good time to explore scaling, which a shelter company can also help with.

• Securing Skilled Labor with a Shelter Company

Hiring and recruiting are part of the shelter services IVEMSA offers. From entry-level skilled workers to the top-most technical talent, IVEMSA can provide manufacturers with a cost analysis based on current job roles and labor rates.

In addition, shelter services include all other administrative tasks necessary to launch production and create a cost-effective way to get manufacturers up and running more quickly.

Get the conversation started about the cost of recruiting labor in Mexico and what the advantages of working with a shelter company provide. Contact IVEMSA today.