If you are looking into newspaper headlines about the US companies succeeding in Mexico, and you are thinking about starting your own business down here, you should know that it is not as easy as it seems. First, you need to have the right connections, know the right people, and be a part of the right group of manufacturing companies.
Why Are The US Companies Coming To Mexico?
With the negotiation of the USMCA (United States-Mexico-Canada Agreement), it is now easier than ever for US companies to come down to Mexico and set up their manufacturing plants. The benefits of this agreement are greater access to the Mexican market, improved working conditions, and increased investment. All this leads to the flourishment of US companies in Mexico.
What Are The Benefits Of Joining A Manufacturing Group In Mexico?
There are many benefits of joining a group of manufacturing companies in Mexico. Some of these benefits include:
Favorable Labor Costs:
One of the main reasons companies are coming to Mexico is the favorable labor costs. In Mexico, the average hourly wage for a manufacturing worker is three-fifth of what their counterparts make in the United States. This makes it an attractive proposition for companies looking to reduce their labor costs.
Proximity To The US Market:
Another benefit of setting up your manufacturing plant in Mexico is its proximity to the US market. With Mexico being so close to the US, it is easy and convenient to transport goods back and forth between the two countries. This proximity also makes it easier for companies to set up supply chains and logistics networks.
Advantaged Supplier Chain Lengths And Cost:
In Mexico, there are several suppliers that companies can choose from. This gives companies the advantage of sourcing materials and components at a lower cost. Additionally, the supplier chain lengths are shorter in Mexico, leading to reduced transportation costs.
The Mexican government has been investing heavily in improving the country’s infrastructure. This improved infrastructure makes it easier for companies to set up their manufacturing plants and move goods around the country.
Favorable Tax Incentives:
The Mexican government offers several tax incentives to companies that set up their manufacturing plants. These tax incentives make it more attractive for companies to do business in Mexico.
Improved Safety And Security:
Mexico has been working hard to improve the safety and security of its citizens. This improved safety and security make it more attractive for companies to do business in Mexico.
Access To A Skilled Workforce:
There is a large pool of skilled workers in Mexico that companies can choose from. This gives companies the ability to find the right employees for their manufacturing plants.
These are just some of the reasons why you should consider joining a group of manufacturing companies in Mexico. If you are thinking about starting your own business, then you should definitely consider setting up your manufacturing plant in Mexico. You will be able to take advantage of all the benefits that this country offers. So what are you waiting for? Contact us today and let us help you get started.