Manufacturing in Mexico: Strategic Advantages for Your Business

Why Choose Mexico
as a Manufacturing
Destination?

Manufacturing in Mexico is a great option for companies looking to expand their operations. Due to its macroeconomic and political stability, low inflation, size and strength of its domestic market, economic growth rate and capacity to produce advanced manufacturing (high-tech products), Mexico is an attractive destination for manufacturers.

Additionally, manufacturing in Mexico offers significant savings on labor costs when compared to other investment options in the Americas, Europe and Asia. As an open economy, Mexico guarantees access to international markets through a network of free trade agreements.

The country boasts a strategic geographic location and competitive costs to service global markets, as well as a highly–skilled, young workforce. All of these factors make manufacturing in Mexico an ideal choice for companies looking to expand their operations.

At American Industries, we offer comprehensive solutions for companies looking to expand their operations to Mexico efficiently and profitably.

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Strategic Location: Direct Access to the U.S. Market

Mexico offers a unique proximity to the United States, which facilitates logistics and reduces transportation times. This strategic location allows companies to leverage nearshoring, optimizing both distribution and production while maintaining low costs. At American Industries, we help businesses establish operations in Mexico, taking advantage of this proximity to enhance supply chain efficiency.

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Reducing Operational Costs: Maximizing Profitability in Production

Mexico is renowned for its competitive labor and resource costs, enabling companies to significantly lower operational expenses without compromising on quality. Additionally, the Mexican government offers fiscal incentives and other economic benefits to attract foreign investment, making Mexico an ideal location to optimize production and improve profit margins.

Robust Infrastructure and Local Supplier Network

Mexico boasts an advanced industrial infrastructure, including world-class industrial parks, access ports, and a network of high-quality local suppliers. This allows companies to leverage nearby resources and establish an efficient operation with no supply chain disruptions. Our team at American Industries connects you with the best local suppliers, streamlining the installation and production process.

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industrial park for manufacturing in mexico

Our Services for Your Success

At American Industries, we offer turnkey solutions to help you establish and operate your manufacturing business in Mexico. We handle everything, from operational management to regulatory compliance and nearshoring support. Our services include:

World-Class Industrial Spaces: Access to modern, customized facilities tailored to your specific needs.
Comprehensive Production Management: Optimize your operations with tailored solutions for your industry.
Regulatory and Legal Compliance: Expert guidance to ensure adherence to local and international regulations.
Logistical Support: Efficient management of your supply chain and product distribution.

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EXPLORE OUR STRATEGIC REGIONS FOR MANUFACTURING IN MEXICO

COMMON INDUSTRIES FOR MANUFACTURING IN MEXICO

Aerospace

Automotive

Medical

Electronics

Appliances

It & High Tech

Textile

Top 10 Reasons to Consider Manufacturing in Mexico: At a Glance

Here’s a quick summary of the key advantages that make manufacturing in Mexico a competitive edge for your business:

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Proximity to Key Markets

Manufacturing in Mexico allows for proximity to markets in the US, Mexico, and Latin America, optimizing logistics and distribution.

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Technical Training Support

High technology training centers ensure your team remains up-to-date with the latest skills and industry standards.

Real-Time Communication

Manufacturing in Mexico ensures seamless, real-time communication with the North American market, optimizing operations and decision-making.

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Quality Culture

Mexico adheres to ISO, AS, NADCAP, and other international quality standards, ensuring top-tier production quality.

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Skilled Workforce

Mexico offers a highly trained and affordable workforce, providing up to 80% savings on labor costs compared to other regions.

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Supply Chain Integration

Mexico's mature supply base in key regions provides streamlined supply chain integration, enhancing production efficiency.

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Tax Incentives

Benefit from no VAT and other tax incentives that make manufacturing in Mexico even more cost-effective.

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Tariff Savings

Mexico's Free Trade Agreements with over 50 countries help reduce tariffs and import/export costs, maximizing profitability.

Soft Landing Culture

Mexico boasts a well-developed "soft landing" culture that helps international companies establish operations quickly and risk-free through fast-track shelter programs.

Legal Certainty

Mexico offers strong protection for intellectual property, giving your business the legal security it needs for success.

Establish Your Manufacturing Operation in Mexico Today

Discover how we can help you optimize your production and take full advantage of the benefits of manufacturing in Mexico. Request a free consultation and begin your journey toward success.

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Frequently Asked Questions

Why should I consider manufacturing in Mexico?

Mexico is an excellent location for any company looking to improve its supply chain resilience and lower operational costs. Its affordable labor rates and ideal location allow companies to maximize logistics efficiency. It also offers a robust manufacturing and supply base, skilled labor force, and modern infrastructure backed by a culture that understands and values manufacturing. The country's strong trade relations are another asset, facilitated by 14 free trade agreements, including the United States-Mexico-Canada Agreement (USMCA). On top of all this, Mexico offers various incentives, giving you additional tax advantages and savings.

What industries are prominent in Mexican manufacturing?

Mexico has a diverse and robust manufacturing sector, with key industries ranging from automotive and aerospace to electronics and medical devices. The country is a global player in automotive manufacturing and has seen significant growth in aerospace and electronics. It also has a strong presence in the home appliances, plastics, textiles and clothing, and furniture sectors.

What is the process for setting up a manufacturing operation in Mexico?

Setting up a manufacturing operation in Mexico involves several steps, including legal incorporation, obtaining necessary permits, and site selection. This represents a steep learning curve in legal, tax, labor, and accounting matters, as well as language and cultural barriers, among others. Because of this, many companies partner with experienced shelter service providers in Mexico who can streamline the process and help ensure a soft landing for your operations in Mexico.

How does Mexico's trade relationship with the United States impact manufacturing?

Mexico's trade relationship with the United States has significantly impacted the manufacturing sector. The USMCA trade agreement has further reduced trade barriers and provides updated rules of origin, intellectual property protection, and regulatory harmonization, making it easier for U.S. companies to operate in Mexico. In addition, geopolitical factors and Mexico's competitive labor rates, quality of goods, and logistical advantages make it a logical choice for U.S. companies.

What are the environmental regulations for manufacturing in Mexico?

Mexico has environmental regulations in place to protect its natural resources and ecosystems. Manufacturers must comply with environmental laws, obtain permits, and manage waste responsibly. Understanding and adhering to these regulations is crucial for sustainable and legal operations.

What is the maquiladora program (IMMEX), and how does it benefit manufacturers?

The IMMEX program, or the Mexican Manufacturing, Maquila, and Export Services Industry program, was established in 2006 to attract foreign investment in Mexico's manufacturing sector. It allows companies to defer or even waive import taxes, value-added tax, and countervailing duties on raw materials and equipment used in manufacturing for export. This results in significant cost savings for international companies manufacturing in Mexico.

If you couldn't find the answer to your question, we suggest downloading our eBook on the Site Selection Process for more information. Alternatively, feel free to contact us directly via email and we'll gladly assist you with any inquiries you may have odelgadillo@aiig.com

7-steps of a successful site selection process for manufacturing in Mexico

If you are interested in manufacturing in Mexico, please fill out this form or contact us at:

+1 (877) 698 3905

Attention hours from Mon to Fri 9:00 - 18:00 CST

start@americanindustriesgroup.com

Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://jobs.americanindustriesgroup.com/

July 18, 2022