The emergence of dedicated manufacturing zones in many Mexican cities has prompted a surge in U.S.-Mexican cross border traffic and trade. These zones, in transportation corridors, like Ciudad Juarez, are specifically targeted at producing finished goods for consumption in the United States. They offer a host of benefits from lowered manufacturing costs and improved logistics to expedited customs inspections and tax benefits.
The latest statistics from the United States Department of Transportation show a significant increase in the numbers of trucks and trains crossing both northern and southern borders of the U.S. While border truck traffic with Canada rose less than one per cent, Mexican cross border traffic was up over 2.6%. Train traffic had an even more dramatic rise with Canada rising 2% while Mexican train traffic rose over 9%.
The increased utilization of Mexican manufacturing facilities has contributed substantially to this rise. Many Asian manufacturers, including Nissan Corporation, have rebased their manufacturing operations in Mexico to take advantage of the improved situation. American manufacturers have also recognized the potential for improved productivity and profitability by using cross border manufacturing facilities. In particular, Ford Motor Company has announced plans to open operations south of the border in the coming year.
Expedited cross border trade requires companies to become C-TPAT certified. This Customs-Trade Partnership Against terrorism certification requires time, expertise and experience. While many are eager to attain this certification, the actual number of approved companies is still quite few. Benefits of the program for manufacturers include secure transport of goods from the manufacturing facility to final destination, priority customs inspections and dedicated cross border lanes.
Manufacturers interested in this process should contact a C-TPAT certified turnkey manufacturer. These companies can help any company in the U.S or abroad to plan, develop and implement a cross border turnkey solution for their manufacturing needs.
The restrictions on truck and train traffic placed by the three governments of the United States, Canada and Mexico can only get more complicated. An experienced turnkey manufacturer can make the process far easier and more cost effective.