Why Manufacture in Mexico?
Manufacturing in Mexico
Mexico provides a business climate, strategic trade location and the economic stability necessary for your company to thrive. Combined with our 40 years of experience, these factors set us apart from our competitors and give you the edge in establishing your operation in Mexico.
In addition to serving as a gateway for the United States and Latin America, Mexico provides a number of advantages over other countries. According to consulting firm AlixPartners, Mexico has the lowest manufacturing costs among Brazil, China and India thanks to its attractive exchange rate against the dollar. In addition, the availability of U.S. major transportation companies, plus free trade agreements with over 32 countries, add to Mexico's advantageous qualities.
The most common methods of establishing your manufacturing operations in Mexico include:
Common Methods of Entering MexicoManufacturing in Mexico |
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Stand-Alone Operations |
A maquiladora can be 100% foreign owned, enjoying the benefits of being exempt from foreign investments. |
Fully liable |
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The client provides technology, raw material and equipment |
You are not in control of your manufacturing process. |
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Shelter programs provide U.S. manufacturers customized administrative services for their maquiladoras. This allows the client the ability to maintain complete control over the Mexico production management, while also enjoying the security of knowing that administrative requirements are being met by the offshore operation. |
Avoids long-term commitment. |
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Manufacturing along the northern border of Mexico offers many advantages on top of those already mentioned. With the immediate proximity to the United States, the Maquiladora Program Concept offers resources including special customs status and duty-free imports on all production-related machinery, equipment, materials and components produced in North America and covered by NAFTA. Combined, these benefits offer you reduced costs throughout your entire project.
Despite the many advantages of conducting business in Mexico, given recent publicity you may be wondering if your investment will be safe. Read more about this in the American Chamber Mexico article Foreign Direct Investment in Mexico: Is Your Investment Safe?