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Like moths drawn to a flame, U.S. manufacturers flock to Asia for assembly needs, but they are overlooking the obvious benefits of manufacturing in Mexico. With China’s labor costs increasing, current economic trends now point towards Mexico as the “new China” for certain manufacturing industries. This development could lead to lower costs, faster turnaround, and higher quality. It could potentially even help bring jobs back to the United States.
That’s why Mexican manufacturing companies like MFI International and American Industries Group support the initiative of the United States-Mexico Chamber of Commerce California Regional Chapter and its upcoming conference, “Manufacturing in North America, Mexico and the United States Working Together!” The event will take place October 11 in the Luxe Hotel on Sunset Blvd. 11461 Sunset Blvd. Los Angeles, CA. U.S. manufacturers and Mexico industry experts will share discussions on the advantages of utilizing North American and Mexican resources to gain competitive advantage as a region.
The Advantages of North American Contract Manufacturing
Instead of blindly offshoring manufacturing to Asia, companies today can take advantage of near-shore manufacturing benefits that exist in their own back yards. These benefits are most apparent when it comes to labor intensive assemblies for such varied industries such as: aerospace, automotive, medical, electronics, home furnishings and consumer products amongst others. The Chamber conference could provide information that will improve progress towards meeting some crucial manufacturing goals:
- Faster Turnaround: Although the allure of lower Asian labor cost may at one time have been the only consideration, many companies found that the time difference, shipping delays and increased transportation costs quickly eroded that benefit. Companies that specialize in cross-border manufacturing can eliminate many logistics hurdles and effectively shorten the cycle from plant to sale.
- Quality Product: It does a manufacturer little good to lower costs if quality is not maintained. While China is trying to train its workforce to meet U.S. standards, Mexican workers have been working with North American companies for over four decades meeting their quality standards and specifications.
- Manufacturing Flexibility: Partnerships with Mexican manufacturing firms can vary from turnkey contract manufacturing to highly specialized assemblies; other companies choose the shelter program that allows manufacturers to quickly establish their own production in Mexico.
- Lower Costs: Taken together, these factors are quickly allowing Mexico to outpace Asia as the near-shore production method of choice.
These opportunities may even help bring back U.S. jobs by taking advantage of the best of both worlds. In a recent blog, MFI International explained how Mexico’s manufacturing flexibility may benefit the U.S. economy through production sharing for various components. While some U.S. manufacturers continue looking for an edge in China, others have already found it with Mexico.
