News, Insights and Best Practices for Manufacturing in Mexico

Consumer Benefits of Offshoring

16 Sep 2014

Category: Labor & Economics, Logistics Management, Manufacturing in Mexico, Medical Device Manufacturing, Taxes & Finance

Expanding to Mexico creates benefits for manufacturers in the numbers, but the benefits of offshoring for consumers are frequently overlooked. Offshoring and outsourcing to Mexico not only means more efficient and low-cost manufacturing  for the company itself, but also results in more affordable products for the consumer. The implications of this can be exponential, depending on the industry in question.

Industry Implications

Take medical device manufacturing, for example. According to HCL Healthcare Management, manufacturing medical devices in Mexico means that U.S. companies can divert research and funds to other medical projects, which in turn promotes both domestic and global medical advancement. While creating jobs outside of the US can indeed be a controversial topic for any company offshoring some of its production, it is a practice that encourages growth that consumers directly benefit from in the long term. These kinds of offshoring advantages allow companies nationwide to stay competitive, preserving and protecting many non-manufacturing related jobs here at home and promoting rapid technological advancement in almost every industry.

 

Manufacturing in Mexico means even more collaboration and efficiencyManufacturing in Mexico means even more collaboration and efficiency

Offshoring is a cost-effective method when done in many countries globally, but the similar time zones and geographic proximity of the US and Mexico cuts transportation time and allows for even more synchronization and in-person meetings than an overseas pairing. Not only does nearshoring in this way mean quicker turnaround when it comes to implementing new ideas and executing business decisions, but because Mexico is so close, even more revenue is saved due to decreased transportation costs - resulting in greater consumer savings and industry advancement. 

 

More efficient companies means increased job availability in the services industry

There is also an argument that the increased manufacturing jobs abroad have in turn created service-related jobs domestically. According to EBSCOhost, offshoring has reallocated such resources in a way that has increased business productivity, creating a greater demand for laborers in the services sector here in the U.S. These jobs require face-to-face interaction with consumers in industries such as leisure and education, both of which promote a higher quality of life.

 

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