Many companies save 20-30% on labor alone when they move operations to Mexico. They also save money on overhead costs like real estate and utilities, and, thanks to the new United States-Mexico-Canada Agreement (USMCA), see significant tax savings.
For years, Mexico has attracted foreign businesses mainly because of its competitive labor rates. For example, the average hourly wage for production operators in Mexico is about $2.60 (USD) per hour. Even skilled laborers, like production engineers, receive a much lower income compared to the U.S. because Mexico’s cost of living is lower.
Aside from cost savings, one of the main advantages of manufacturing in Mexico is its proximity to the U.S. It’s easy to fly (or even drive) in to visit facilities. Communication is simpler since the Mexican facility is in the same time zone as corporate headquarters (or three hours difference at the most).
We understand moving a line to another country is not an overnight process. It represents a very strong decision and you want to look at it from all angles. Be sure we will follow up accordingly, and that doesn’t mean calling you every other month.
Companies from the US that want to either relocate or expand into Mexico usually want to know the ABC’s of legal, taxes, customs, real estate, shelter and HR. Our team will schedule a 30 – 60 min. conference call with you and will gladly explain the do’s and don’ts when doing business in Mexico.