COVID-19 Response

Mexico Manufacturing: Your 2013 Strategy


Favorable macroeconomic conditions have positioned Mexico in a positive trend for manufacturing. In 2012, according to a new report by The Manufacturers Alliance for Productivity and Innovation (MAPI), Mexico’s manufacturing industry grew 3.7%.

Economic analysts say U.S. manufacturers and investors should continue to look to Mexico for their long-term manufacturing plans. The country will also further offset China’s labor costs by closing the wage gap in 2015, according to The Boston Consulting Group, a global management consulting firm. In 2013, the minimum wage in Mexico increased by 3.9%. This brings the cost of labor to around 64.76 pesos per day (equaling approximately $5.20/day). Since 2009, labor costs have increased nominally — less than 4% on average per year.

In Mexico’s manufacturing industry, labor cost rate varies depending on the type of industry, skills and benefits. For example, the cut-and-sew industry is a highly labor-intensive operation employing Mexican labor; manufacturers can see the cost benefit here:

“Clients can typically add $1M to their bottom line per 50 employees for medium to low skilled manufacturing operations compared to the U.S.,” reports Fatih Akben, Director of Business Development at MFI International, MFG., LLC”.

Mexico offers competitively paid yet highly skilled workers, convenient, near-shore delivery, and attractive trade incentives. In addition, MFI’s flexible manufacturing services can make your transition fast and cost-effective. We have more than 30 years manufacturing experience in Mexico and can streamline your manufacturing strategy with ease.

For a detailed evaluation of manufacturing cost savings vs. your U.S. or China operations, contact us:

Download:MFI's Contract Manufacturing Presentation