News, Insights and Best Practices for Manufacturing in Mexico

3 facts about Mexico the media never told you

31 Jan 2014

Category: Manufacturing in Mexico

The media landscape can often appear strewn with stories that emphasize the most negative aspects of any industry, country or government. The truth is sensational stories - most often filled with violence or scandal - sell to viewers, readers and subscribers. The real travesty in this situation is positive, factual information flies under the radar. For instance, the manufacturing sector in Mexico is one of the most encouraging industries in the country, if not around the globe. There are companies that offshore in Mexico to supply inventory to partners in neighboring regions or deliver products directly to the country's consumers, as well as manufacturers looking to better manage their supply chain through strategic production facilities throughout Mexico. Besides the benefits primary stakeholders enjoy by manufacturing in Mexico, there is a multitude of positive consequences associated with moving production to the North American partner.

  1. Mexico promotes job growth in the U.S.
    While many people recognize the fact that industries from Canada, the U.S., Europe and many other nations have expanded operations in Mexico, it might be less apparent to the majority of individuals how much Mexican businesses influence the U.S. economy. In an infographic published by the U.S. Chamber of Commerce it becomes clear that cross-border cooperation has helped lead the U.S. out of the financial crisis that hit during the past several years.

    The nine enterprises identified by the COC are a source of employment for more than 81,000 U.S. workers, and about 6 million people in the U.S. occupy a position that depends on this trade relationship with Mexico. At the same time, the daily total for two-way trade between the two nations is roughly $1.35 billion, which has been driven by exports. More than $270 million in vehicle parts are exported from Mexico to the North Central region of the U.S. every day, while small- to medium-sized businesses in the U.S. export $41 billion worth of goods to Mexico each year.

  2. It's much easier to operate a business in Mexico than in China
    While the media has often portrayed China as the center of the manufacturing world, there are a number of restrictions for establishing and keeping a business running in the Asian nation. A report released by the Secretaria de Economia, the department of the Mexican federal government in charge of public policies related to employment, highlighted many of the disparities between Mexico and China when it comes to operating a business. In fact, business owners must complete 13 distinct procedures to start a business in China, while those in Mexico need to follow about half as many.

    At the same time, companies need much less time to get a business off the ground. Companies require 9 days to open a business in Mexico, while their counterparts in China regularly need 33 days. If an enterprise has plans to construct facilities in China, they need to schedule them well in advance, as it takes roughly 270 days to get construction permits. On the other hand, companies in Mexico can expect to wait 69 days. This lag in time can be extremely detrimental to establishing a productive offshore location, and many business owners don't recognize it until it's too late.

  3. Mexico boasts award-winning working conditions
    The most recent recipient of the Award for Corporate Excellence went to the electronics manufacturer Plantronics primarily for the company's activities at the Plamex locations in Mexico, the Santa Cruz Sentinel reported. The company has been named "Best Place to Work in Mexico" for three years consecutively for its focus on professional development and worker satisfaction. Equally important has been the organization's dedication to meeting and exceeding environmental standards.


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