Find Manufacturers in Mexico
The second largest import trading partner and gateway to South American manufacturers.
What to Expect
Considerations for Mexico
Stability & Location
- Imports to USA $358 billion
- Trade stability
- Convenient proximity
1.
USMCA Trade Agreement
- Lower risk in a fast changing world
- Free trade agreement – lower import tariffs
2.
Cost Competitive
- Electrcical equipment, mid to high end footwear, textiles, medical equipment, furniture
- Labor 20 % less than China
3.
Fast Turnaround
- Convenient travel to visit suppliers
- Rapid prototyping, sampling advantage for product development
Lessons Learned
Responding to Supply Chain Trends
01. Don’t go to Mexico just for cheap labor
- Mexico’s labor rate has increased 1000% from 2000 to 2020
- 25% cross-border import tariffs on most products
- Go to Mexico for robust supply network and top engineering talent
02. Diversify to reduce risk
- Custom supply chain strategy solutions
- Low volume strategy vs. high volume strategy
- Newly expanding manufacturing ecosystems in alternative markets
03. Partner with a supply chain expert
- We’re ready to guide you to an optimal solution. Let’s realize your product development together
Mitigation Strategies
How To Diversify Your Mexico-Dependency
1.
Dependency
All of your sourcing manufacturing and assembly is completed within Mexico. You are paying appox. 25% import tariffs.
2.
High Value Manufacturing
Molds and speciality tooling sent to supplier in alternative country for core manufacturing. High volume and low cost parts continue to be supplied from Mexico.
3.
New Market
All manufacturing is completed in Mexico and the finshed componnts are sent to alternative country for final assembly. Possible to avoid Section 301 import tariffs.
4.
Transition
All manufacturing and final assembly is fully transitioned to alternative market. Some sub compenents or material may still be sourced from Mexico by your suppliers.
Product Launch Strategies
Trends and Predictions
1.
Sustainable Products
- Amazon “Climate Pledge Friendly” certification
- 18 independent certfication options
- Increased consumer demand, increased competitiveness
2.
US – Mexico Tarrifs
- Slow change expected over coming years
- Do not delay implementing a smart supply chain strateg
3.
Pandemic Impact
- Surging Ecommerce growth
- Incresead opportunity
- Incresead competition
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Related Content
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