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5 Things to Know About Manufacturing in Mexico
It’s natural, and a smart business move, to find ways of streamlining your business to make it more efficient and cost-effective. Sometimes that means outsourcing to another country, which can be a great alternative and a good way to save money. It does, however, come with a few of it’s own quirks and complications, and it’s important to do some thorough research on how is the best way to go about manufacturing in another country. In particular, for the cable and wire harness industry, here are some things to keep in mind when outsourcing the creation of wire harnesses Mexico.
1) Why wire harness Mexico in particular? Well, there are many advantages to choosing Mexico in comparison with other countries. For one thing, it is close in proximity, which is a definite benefit. Imagine having to fly to the other side of the globe in order to check up on your manufacturer. Mexico, on the other hand, is a drive or a short flight away. This also means that inventory supply will always be timely, and there should be no bottlenecks with transportation of goods, and if there are any quality issues, it should be no problem to send the product back for reprocessing.
2) Also, Mexico is less costly in many different ways. The labor itself will cost less than in the states, the fees and costs or transportation are less, and the country has better patent, and intellectual property regulation enforcement than most other manufacturing country options. There is also a relatively low political risk, unlike in many overseas countries. And there will be no need to ship from overseas, so you will avoid the cost and worry of ocean freighting.
3) As far as labor goes, the cheapest is usually found in China, and other emerging industrial Asian countries. Wages in Mexico tend to be higher, but they are also generally more skilled and educated workers. Also, English is often taught in schools, and the language and number characters are the same in Spanish and English, all of which generally make communication easier.
4) The U.S. economy is closely tied with the Mexican economy, with a long-term trend of the peso being slightly deflationary to the American dollar. Therefore, everything is slightly cheaper that in the U.S., on level with our price ranges just less expensive. This comes in handy with shipping costs. Also there are little to no duties.
5) The Mexican workweek is 48 hours, but it is at a livable wage, and there are strong child labor laws and health and safety inspections for working conditions. In many other countries you see the “sweatshop” model that is not only inhumane, but it reflects poorly on companies who rely on them.
In the end, most businesses do what makes the most financial sense and will ultimately increase profits. When shipping, communication, and labor prices, as well as the moral and social responsibility factors, are all counted up, Mexico is a great place to outsource your wire harness manufacturing.
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