Mexico Manufacturing: Is It a Good Idea?
Your small business could definitely benefit from lowering overhead, either by producing less or by finding cheaper routes of production. If you are in a business that creates, packages, manufactures, and/or sells your own product, maybe you’ve considered offshore manufacturing. What are some pros and cons of doing business overseas? What should you look out for when choosing a manufacturer?
Many small business owners who need products created or manufactured could benefit from a cheaper overseas alternative, and commonly the answer in that case is found in China. The fears most often encountered when dealing with Chinese manufacturers is a possibly low quality of output, less-than-ethical working conditions, and the language barrier. While resellers and brokers are in luck with the introduction of companies such as Alibaba.com that connect dealers with product manufacturers and global merchants, if you are in the business of creating your own products from scratch, China may not be the way to go.
Mexico could be a possible solution in this case. At least where I am, Mexico is closer than some US states, and when I lived there, realized that the farther south of the border you get, the nicer the country is. When I began thinking about the possibilities of doing business in Mexico, many of the common worries I’d had about overseas manufacturing went away:
- Mexico manufacturing companies exist throughout the country, not just near the borders and Mexico City. This means that there are actually Mexico manufacturers in places that are nice to visit.
- The language barrier is present, but much easier to overcome. As Spanish is quickly becoming one of the world’s most spoken and understood languages, finding a translator or learning the language will only get easier. Plus, with Mexico’s proximity to America, many Mexicans already have some English training, especially businessmen and women.
- Many large corporations have plants in Mexico and neighboring countries, so the quality of production doesn’t have to take a dive once shop is set up. If done through a company like Entrada Group, manufacturing in Mexico will still under your full control–the mediation company only steps in to help with administrative, staffing, and governmental work.
If you’ve considered manufacturing somewhere else, don’t automatically look to Asia or the Middle East–Mexico receives a bad rep mostly due to government corruption and drug networks. The people and businesses I’ve known and have dealt with are nothing but cordial, polite, trustworthy, and reputable.
Related posts:
experience