News, Insights and Best Practices for Manufacturing in Mexico

Mexico Continues to Gain Offshoring Ground

08 Dec 2014

Category: Labor & Economics, Logistics Management, Manufacturing in Mexico

There is no shortage of companies that are either looking at setting up operations or expanding their manufacturing in Mexico efforts. The country has taken careful steps to make it advantageous for foreign organizations to do business within its borders, and the benefits are certainly not lost on businesses that want to produce quality products using a highly skilled labor force at a fraction of the cost. 

offshore-manufacturing.jpgMexico continues to gain ground as an ideal offshoring location for many companies.


Innovation in Offshoring

Not only does offshore manufacturing improve profit margins, but it also develops deeper consumer loyalty from those satisfied with the wares produced by a particular organization.

"Companies from around the world are drawn to Mexico and the region for its technology and manufacturing innovation and growth outlook," Mark Rohr, CEO of Celanese, a manufacturing company based in Summit, Illinois, told Hydrocarbon Processing.

"Companies from around the world are drawn to Mexico and the region for its technology and manufacturing innovation and growth outlook." - Mark Rohr, CEO of Celanese

For 70 years, the company has had an established manufacturing presence in the country, and Celanese is now planning to open a new research and development center to benefit its Latin American clients. The new R&D facility will be established to serve its corporate partners involved in the automotive, aerospace, medical device and consumer electronics sectors. The R&D center will continue to advance innovations in the creation of paints, adhesives and engineering polymers, to name a few.

"Today we are fortunate to have such a great and diverse base of customers and mutually valuable business relationships in Latin America," John Caamano, Celanese's vice president of sales for the Americas region, told the website. "Our Mexican team and facilities help to service our customers all over the world."


Mexico Continues to Gain Offshoring Ground

There are a number of countries, such as India and China that foreign companies look to establish manufacturing operations in. However, Mexico is quickly catching up to these nations and could someday surpass them.

Nearshore Americas, citing the 2014 Global Services Location Index created by global management consulting firm A.T. Kearney, reported that Mexico rose to fourth place, trailing India, China and Malaysia on the list of countries that have become ideal offshoring destinations. In 2013, Mexico was ranked sixth in the annual survey.

The study measures a number of factors that companies would find ideal enough to consider setting up manufacturing operations in a foreign land, such as the quality and availability of the skilled labor force, as well as overall operational costs. Mexico has all of these factors going for it and this is one of the major reasons why companies looking to expand to other nations may consider the country first. Mexico has aggressively implemented governmental regulations that make it beneficial for companies to come in and do business there. These activities will likely continue and offshoring activity in the country will continue to grow. 

Check out our infographic to learn about  Nearshore Manufacturing in Mexico!


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