How to successfully move your manufacturing to Mexico?

Mexico, an attractive destination for manufacturing

Moving manufacturing to Mexico has become a strategic move for various companies thanks to the competitive costs it offers, both in terms of labor, taxes and regulations, which make this country a very profitable option for companies seeking expand in the global market.

If you are thinking about carrying out a manufacturing project, Mexico should definitely be on your radar and here we tell you why.

5 global challenges of manufacturing today

Today, the manufacturing industry faces numerous global challenges that affect the competitiveness of companies abroad, for example:

1. High costs and competitiveness

The increase in production costs in developed countries directly impacts the prices of manufactured products. This represents a financial challenge for companies as they need to find ways to reduce them to remain competitive in the global market.

2. Logistics and production times

Transportation logistics and inventory management can be a headache for companies, as it involves coordinating the movement of raw materials, components and finished products throughout the entire production chain.

Efficiency in this process is vital to reduce production times and meet established deadlines.

3. Regulations and trade barriers

Each country has its own policies and regulations regarding the import, export and production of goods. This can result in a regulatory maze for businesses as they must ensure they comply with all established standards and requirements.

Likewise, trade barriers, such as tariffs and import quotas, can make it difficult to access certain markets and weaken the competitiveness of companies.

4. Geopolitical instability

Political conflicts, trade tensions between countries and changes in government policies can create uncertainty and affect the business outlook.

This forces companies to reevaluate their manufacturing strategy and look for new destinations that offer political and economic stability.

5. Changes in consumer preferences

Consumers are increasingly aware of the sustainability, quality and origin of the products they purchase. This requires companies to adapt their manufacturing processes to meet these changing demands.

In addition, the rapid evolution of technology and the demand for customized products are also transforming the way they are designed and manufactured.


Relocation strategies: build or outsource in Mexico?

When it comes to moving your manufacturing to Mexico, there are two main options to consider, let’s look at each of them in detail.

Likewise, it is essential to carry out a detailed analysis of the costs and times involved. Let’s look at some aspects to take into account in this process.

In addition to the above, Mexico offers a series of tax and infrastructure advantages that can be capitalized by moving your manufacturing to the country. Let’s take a closer look at what we mean.

Mexico, a solution for manufacturing challenges

In recent years, Mexico has established itself as one of the main destinations for the manufacturing of industrial products worldwide. But what makes this country so attractive for companies?


Privileged geographical location

By sharing a border with the United States, Mexico becomes a strategic gateway to the largest market in the world. This implies a reduction in transportation times and costs, facilitating the efficient distribution of manufactured products, both in the domestic and international markets.


Qualified and competitive workforce. 

The country has a large number of professionals in the field of design, engineering and manufacturing, which allows companies to find workers with the necessary skills to carry out their projects. In addition, salaries in Mexico are usually lower compared to other developed countries, which translates into reduced costs for companies.


Free trade agreements. 

Mexico has a wide network of free trade agreements with more than 50 countries, including the Treaty between Mexico, the United States and Canada (T-MEC), providing preferential access to different international markets, eliminating tariff barriers and facilitating the export of products. manufactured goods, as well as the import of raw materials and components at competitive prices.

Robust supplier and subcontractor sector. 

Which specialize in the manufacturing of components and the assembly of products, which simplifies the supply chain and reduces logistics costs. In addition, the geographical proximity to the US allows a quick response to market needs and greater flexibility in product delivery.

Developed logistics infrastructure. 

New ports, roads and airports have been built with the aim of facilitating the mobility of goods within and outside the country. This translates into shorter delivery times and greater efficiency in the supply chain. Not to mention, Mexico has also invested in the development of industrial parks and special economic zones that offer a wide range of services and facilities for the manufacturing industry.

Political and economic stability. 

Mexico has managed to maintain political and economic stability compared to other countries in the region. This inspires confidence in investors and provides a favorable environment for the continuity of business operations in the long term.


Manufacturing in Mexico can represent significant savings when it comes to taxes and regulations as well, since the Mexican government has implemented a series of tax incentives and exemptions to encourage foreign investment that, together with a favorable regulatory environment, facilitate the operation of companies and reduce bureaucracy.

Move your manufacturing to Mexico and optimize your plastic injection molding with KLUMEX

Taking these factors into account, Mexico has become an attractive destination for global manufacturing.

Companies can benefit from the competitive costs, favorable trade agreements, strategic location, logistics infrastructure, and political and economic stability that the country offers.



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