Learn Why Mexico Manufacturing
is Booming
More affordable labor costs, a highly educated workforce, and Mexico’s proximity to the United States are only three of the main reasons why many multinational companies choose to move their manufacturing operations to Mexico. Expanding or moving manufacturing to Mexico has become more of a reality for companies in recent years
Why Are Manufacturing Companies Moving to Mexico
Global commerce, market competition, and reduced costs among other factors have explained U.S manufacturing companies moving to Mexico.
With their own budget plan, each company must constantly modify and adjust to changes in the world’s economy.
When it comes to competition, CEOs need to think strategically when creating and delivering their own products by modifying plans and becoming more flexible to change.
By doing so, they are more likely to succeed and generate more revenue than their competitors…
while manufacturing and delivering high-quality products more cost-efficiently.
Developing these plans has enabled companies to retain not only their present business but also continued growth.
Many manufacturers in the U.S. have opted for the use of robots to do certain jobs where they could have a few workers oversee the robot’s efficiency, rather than having humans doing the hard work.
Some CEOs have had to take other measures by moving their plants and headquarters elsewhere-where labor costs are significantly lower. One such place is Mexico.
In Mexico, manufacturers find it to be much more cost-efficient to have humans do manual labor at a much lower pay rate- and still have lower costs than their competitors.
Many CEO's have opted for hiring workers in Mexico to do the same job an American would have done in the past but at a much lower cost.
This is the simplest choice for them because USMCA The U.S.-Mexico-Canada Agreement facilitates bringing goods into the U.S and Canada, duty-free. Moving manufacturing to Mexico where employees deliver the exact same product, quality, and quantity, but at much lower costs, benefits many Mexicans lives dramatically as well as a company’s revenues.
Therefore, manufacturing companies that move to Mexico would be able to deliver high-quality products, at lower labor costs, resulting in greater profits.
Fact Sheets:
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UNITED STATES–MEXICO–CANADA TRADE FACT SHEET Modernizing NAFTA into a 21st Century Trade Agreement
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UNITED STATES–MEXICO–CANADA TRADE FACT SHEET Rebalancing Trade to Support Manufacturing
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UNITED STATES–MEXICO–CANADA TRADE FACT SHEET Strengthening North American Trade in Agriculture
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