Reasons Why Mexico Is The Best Place For Manufacturing
Are you a manufacturer looking to increase profits? If yes, then this post is for you. There was a time when manufacturing in China was considered as the most suitable option for middle to large-scale manufacturers. It was because the labor was competitive and cost-efficient. Many big names started their operations in China because of these reasons. The time is changing now, and Mexico is offering much more for the manufacturers. The most considerable benefits that manufacturers get in Mexico include Free Trade Agreements, Diversification of the Market, and much more.
Here are some reasons why you should operate in Mexico:
Presence Of Shelter Companies
The trend of shelter companies is something that you don’t see in other countries. Many well-reputed companies like Tacna help you focus on your core responsibility of manufacturing by handling everything else. What is the benefit for you in this? You get time and energy to excel in manufacturing and boost your profits. Shelter companies offer various services like handling legislation, offering VAT certification, dealing with legal matters, human resource management, and much more.
Lower costs is the most significant perk of operating in Mexico. Whether it is the land you want to operate on or the labor you need, everything costs less in Mexico. On average, the cost of land in Mexico is 50% less than the US’s cost of land. The differences are enormous, and the benefits are countless. A skilled worker in Mexico is paid less or near to a non-skilled worker in the US. It significantly reduces the cost of operation and increases the profits up to a great extent.
Easy To Enter
The market of Mexico is much easier to enter than other markets like China. The advantages that Mexico offers to manufacturers are too good to be true. The country has a favorable climate for manufacturing, and Language is also similar and understandable. Culture is also similar to the US. These factors also save a lot of your resources.
Skilled & Competitive Workforce
The workforce in Mexico is not only cheap, but it is also literate and skilled. According to the stats, almost 94% of Mexico’s population is literate, making it a perfect place for manufacturers. Around 1,15,000 engineers pass out every year from different universities of Mexico.
Diversification Of Market
Because of these unparalleled advantages offered by Mexico’s government, the market’s diversification is increasing day by day. Many manufacturers from all around the world have transitioned their operations to Mexico because of the favorable environment.
The part is that Mexico’s Government promotes this diversification encouraging manufacturers to expand.
Programs like IMMEX and systems like Maquiladora have played a vital role in promoting business in Mexico. These programs offered Tax exemption for manufacturers that help them adjust and bloom. Under these programs, manufacturers were allowed to temporarily import resources, manufacturing tools, and other necessities without paying import duty. Mexico is becoming the most robust exporter because it offers more FTAs( Free Trade Agreements) than any other country.
Collectively all these factors prove that in today’s world Mexico is a paradise for manufacturers.