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What are the benefits of manufacturing in Mexico?
5 Answers
- 3 years ago
Skilled, available and affordable workforce: up to 80% in labor cost savings.
Quality culture: ISO, AS, NADCAP and other international quality standards.
Tariffs savings due to Mexico's Free Trade Agreements with 44 countries.
Tax incentives for manufactures: NO VAT and NO INCOME TAX.
Source(s): American Industries Group - 3 years ago
Mexico’s low landed costs are attractive when considered in comparison to other developing country options. It is suited to serve as a manufacturing venue for short to medium-run products that have a high degree of engineered content. Its proximity to the United States enables technical and production personnel to coordinate activities to bridge temporary and physical distances. The closeness to markets, as well as to the consumer base, fulfills the just-in-time requirements of both. Additionally, Mexico’s efforts to enforce patent and intellectual property laws are advanced compared with those in place in other low-cost nations. Political risk associated with the country is minimal. Although the average wage rate in Mexico is higher than in China and other emerging Asian economies, the workforce in Mexico has a large pool of highly educated and skilled engineers. Also, freight charges from China has significantly increased over the years, which make up for the difference in labor cost.
- Anonymous3 years ago
Cheaper costs
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- Anonymous3 years ago
you don't have to worry about illegal immigrants coming in from mexico and taking your employees's jobs