Mexico has quickly become a destination for a foreign companies looking to contract manufacturing services. The country’s location, skilled workforce, and cost-effectiveness make it an ideal destination for businesses looking to expand their production capabilities.

In this blog, we’ll explore why Mexico is the ideal destination for contract manufacturing, focusing on the cost savings associated with contract manufacturing companies in Mexico.

Benefits of working with a Mexican Contract Manufacturer

Unlike other foreign companies, Mexico’s location makes it an ideal hub for businesses looking to expand their reach in the North American market.

The country shares a border with the United States and has access to both the Atlantic and Pacific oceans, making it a strategic location for access to raw materials and businesses looking to distribute their products throughout the continent.

Additionally, Mexico has a robust transportation network, including ports, airports, and railroads, which facilitate the efficient movement of goods across the country and beyond.

Access to a Skilled Labor Force

Mexico boasts a well-educated and skilled workforce, with a particular emphasis on manufacturing.

According to the World Economic Forum, Mexico is ranked as the 14th most significant country in terms of manufacturing competitiveness, and the country has a large pool of engineering graduates with applicable skills to manufacturing operations. This abundance of skilled manufacturing labor is beneficial for businesses looking to contract manufacturing services as they can leverage this talent pool to ensure high-quality production output.

The Cost Savings associated with Contract Manufacturing Companies in Mexico

One of the most significant advantages of contracting manufacturing companies in Mexico is the lower labor costs it provides.

Mexico’s low labor costs and favorable exchange rates make it an attractive option for businesses looking to reduce their manufacturing costs. Additionally, Mexico’s proximity to the United States means that transportation costs are significantly lower than sourcing from countries located further away, reducing shipping costs and transit times.

Supply Chain and Legal Benefits of Contract Manufacturing in Mexico

While other foreign manufacturers are in flux with the legalities of supply chain transport into the US, the Mexican government has implemented various programs to promote foreign investment in the country, including tax incentives and free trade agreements with more than 40 countries.

These programs can result in substantial cost savings for businesses that begin manufacturing in Mexico.

Look to Mexico for your next Contract Manufacturer

Mexico is the ideal destination for businesses looking for a contract manufacturing partner.

The country’s location, skilled workforce, and cost-effectiveness make it an attractive option for businesses looking to expand their manufacturing operations. With the added benefit of cost savings, it’s easy to see why Mexico is quickly becoming a preferred location for businesses seeking to contract manufacturing services.

BF&S Contract Manufacturers

BF&S Mexican contract manufacturing delivers on unparalleled attention to detail and delivery from concept to completion.

BF&S is a shelter company with full shelter services, clients have full control of their quality and production. Clients benefit from the experience of the BF&S staff and their knowledge of the local market; eliminating the need to make sizable investments in physical and human assets.

BF&S customers can initiate operations quickly without establishing a legal presence in Mexico. BF&S “shelters” our customers from many risks and liabilities.

BF&S performs these tasks and functions that are not core to the manufacturing process, allowing our clients to focus on those areas that affect their profitability and growth.

Learn more by continuing to explore our website.