Is manufacturing in Mexico the most cost effective offshoring opportunity?

The following criteria may help determine the cost-effectiveness of outsourcing in any particular geographic zone:

1. Whether the output (products and services) are meant for 100% consumption in the US or some are for re-export or all are for 100% export to other countries.

2. What type of quality of output you are looking for?

3. What is the Shipping-time required for the transportation?

4. What is shipping-cost for the same output if they are outsourced in the countries as mentioned by you?

For example, if the output is meant for consumption in the US and the shipping time (total delivery period) is too long, say 30-days from Asia, than 7-days from Mexico, and also the cost of shipping is say US$ 5000 from Asia than US$ 500 from Mexico, then it is advisable to have that product outsourced to Mexico.

On the other hand, if the product is for selling in Asia, Africa and Europe then it may be a good choice to outsource the same to any of the Asian countries mentioned by you.

We can assume that the quality of output for industrial and consumer items are better taken care in Mexico than in Asia, due to poor work-habit and lack of awareness for quality, than what you can find in Mexico.

So, these can be decided on case-to-case basis and also how much 'noise' the US public or politician can generate in outsourcing a particular item to any particular country.

Hope above helps.

Let's talk about China, Mexico and the U.S.

It is known that about 15 percent of what is exchanged in goods between U.S. and China is China buying from the U.S. With Mexico it’s about 35 percent.

As income grows in Mexico, we can expect that number will continue to increase. Also there are chronic shortages of materials in Mexico that the U.S. could serve if we were to build this relationship in a positive fashion rather than the way we have to date.

A simple example is fabrication. There is a shortage of fabricators in Mexico. The result is that a lot of firms are having a difficult time getting supplies.

You could build additional fabricators in Mexico but meeting U.S. regulations on a lot of these materials is not something Mexicans particularly want to do. So it’s more likely the fabricators would be in the U.S. near the border and shipping into Mexico.

Another area is technology. The U.S. has leading-edge technology, for example in automation, which is likely to grow in Mexico. There are many products that Mexico does without simply because distributors are not calling on them.

Please take a look at this page: http://www.manufacturinginmexico.com/

If your skills are for instance, plumber, electrician, i.t., in the building trade etc. you would probably get a job anywhere, as we have a big shortage here in Oz but it is very expensive to live in Sydney [I know - I lived there for 33 years and rent went from $30 to around $500 Aust dollars a week for a 1-2 bedroom flat in that time and I left 8 years ago - G.d knows what it is now.] Also a lot of ethnic gangs there now and the city and certain suburbs became not very nice places to be at night and on weekends. So I came to Tasmania. Beautiful place. Plenty of work for the abovementioned jobs here, friendly people, fabulous local seafood, fresh meat and fresh fruit and veges and gorgeous island to live on. Yes, it's a bit colder than the "big island" but very laid back. Depends how old you are and what you are looking for including nightlife etc. Not much of that down here, except in 2 major cities [Hobart and Launceston]. Melbourne is nice too with much the same weather but a lot hotter in summer. Adelaide I can't speak of, never been there, Perth is stifling hot in summer, Brisbane is pretty hot also but haven't been there either. Have been to the Gold Coast near Brisbane but hated it and haven't been to Darwin but it is definitely tropical. You should get on the internet and check the place out properly before you decide to come.