Manufacturing in Mexico

Your Mexican facility will likely be in your time zone, or no more than three hours ahead or behind, so communication will be simpler as well.

Shipping from China takes longer and is more expensive. According to Investing Daily, it would cost about $7,000 to ship a 40-foot container from China, but just $2,800 from Mexico. If your facilities are in one of the border cities, it can take just 24-48 hours to get your finished goods from the plant to their destination in the U.S. Those same goods could take up to three weeks to arrive from China.

When quality issues occur, it’s relatively easy to address them when production is in Mexico. Products can be returned to be repaired or replaced, and managers can visit the plant to fix the problem. Quality issues in China— which may occur more often due to the distance and communication barriers—are more challenging to fix.

Mexico has 12 multilateral trade agreements that provide preferential trade access to 44 countries, making it one of the most open countries in the world for international trade. USMCA in particular has helped transform Mexico’s economy into one driven by manufacturing and exporting.

While Mexico has a strong trade relationship with the U.S., as evidenced by the USMCA, The China-U.S. relationship suffers from battles over import duties and tariffs. Additionally, there is an ongoing geopolitical struggle between the U.S. and China that often impacts businesses operating in both countries.

4% in energy costs

Mexico has a strong reputation for protecting intellectual property rights. By contrast, China frequently has problems with counterfeits, and courts are slow to enforce or recognize intellectual property rights.