News, Insights and Best Practices for Manufacturing in Mexico

US glycerin supplier advances manufacturing in Mexico

24 Jan 2014

Category: Manufacturing in Mexico

The Mexican labor market presents many opportunities for both domestic and international businesses aiming to streamline manufacturing, advance production methods and leverage a skilled workforce. There are a variety of companies specializing in advanced manufacturing, including industrial and chemical processing, that have begun implementing changes in the way they operate by offshoring to Mexico. In fact, according to a recent press release from glycerin supplier and refiner BenchMark Energy, the company has decided to take advantage of partnerships with its Mexican counterparts to improve commercial development of an antifreeze that will be targeted toward the North American consumer market.

Making the most of supply chain efficiencies
With contracts settled, BenchMark Energy has established an agreement with a chemical processor in Mexico that will allow the company to reach its goals for production. To this end, the glycerin supplier will ship the refined chemical to its Mexican partner, which will then handle manufacturing and shipments of the final product. In ramping up activities, the Mexican production facility is expected to eventually reach a capacity of 150,000 gallons per month. BenchMark Energy has set its sights on providing a more sustainable and environmentally-friendly antifreeze and aims to provide consumers in North American markets with the product by the end of January 2014.

Mark Bateman, the CEO of BenchMark Energy, explained the glycerin-based antifreeze, as opposed to the industry standard ethylene glycol, offers ecological and performance benefits. For example, the company indicated this type of antifreeze is less harmful to auto parts, especially engine components. Recochem, a chemical formulator, supported this claim explaining that glycerin is less toxic for the environment and is produced using renewable resources, such as materials used in biodiesel processing and other organic plant materials.

Skilled workers provide a strong labor force
Because of the thriving automotive and aerospace manufacturing sectors already in place in Mexico, multinational companies have a significant opportunity to take advantage of a highly skilled labor force. The country has enacted educational reforms in an effort to support the workforce and prepare employees for in-demand positions in manufacturing facilities. In fact, there are many opportunities for businesses to employ workers who are currently in positions that don't take full advantage of their skills. According to the Organization for Economic Co-operation and Development, 40 percent of employees in Mexico were overqualified for their roles as of 2005. This is well above the OECD average of 22 percent for international employees, and education reforms have raised standards in the country.

Manufacturing in Mexico presents a wide range of opportunities for international companies. The expansive labor market with skilled workers can reduce operational costs while maintaining the highest quality standards.

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