Expanding to Mexico creates benefits for manufacturers by the numbers, but the benefits of offshoring for consumers are frequently overlooked. Offshoring in Mexico not only means more efficient and low-cost manufacturing for the company itself, but also results in more affordable products for the consumer. Holistic offshoring advantages can be exponential, depending on the industry in question.
Offshoring Benefits for Industry Advancement
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 projects in their home country, which in turn promotes both domestic and global medical advancement. Offshore production is part of a collaborative effort for countries because it encourages financial growth for both sides that consumers directly benefit from in the long term. These kinds of offshoring advantages allow companies worldwide to stay competitive, preserving and protecting many non-manufacturing related jobs here at home and promoting rapid technological advancement in almost every industry.
Collaboration and Efficiency
Offshoring is a cost-effective method when done in many countries globally, but 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, more revenue is saved due to decreased transportation costs - resulting in greater consumer savings and industry advancement.
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.
The consumer benefits of offshoring to Mexico are maintained by international partnerships, industry collaboration, and better customer service. When considering moving operations to Mexico, know your customer will also benefit from efficient production and services.