- How would you like to cut your labor cost by up to 80%?
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 For over 40 years, Mexico has been a very attractive low cost country to establish offshore manufacturing operations.
The constant question that we get:
- “Are labor costs going to remain the same over time?”
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This is a well founded concern, especially since the old paradigm of cheap labor that took plenty of manufacturing companies relocate to countries in Asia, Eastern Europe or Africa has shifted.
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Labor costs increase rates are most likely to be stable over the next years in Mexico, as it has behaved over the last couple of decades, whereas other countries in Asia show the opposite.
- According to the International Labor Organization, the labor cost gap between manufacturing in China vs. manufacturing in Mexico has narrowed down over the last 3 years.
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Fact: if you offshore your manufacturing operations to Mexico, you will be able to save up to 80% on labor costs, depending on your present locations’ wages.
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The total cost production equation, and total cost of product acquisition for your customers are what really matters. They can be the difference between buying from you or buying from your competitors.
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So, here are several questions you should be asking yourself about the labor involved to manufacture and deliver your products right to your clients’ door:
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- - If your customer base is in North America, what is the lead time and inventory holding costs when you manufacture in Mexico or Asia?
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- - How much scrap and waste will you have by manufacturing in Mexico or Asia due to quality standards commitment?
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- - How much much scrap and waste will you have by manufacturing in Mexico or Asia due to turnover and productivity rates?
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- - What is your risk level of training labor in your offshoring plant turning them into your next competitor due to intellectual property culture?
- Now, if you chose to start up manufacturing in Mexico…
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- Will you be able to find skilled labor?
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- Will you be able to find skilled Engineers for production and quality management?
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- Will you be able to have world class quality standards?
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- Will you be able to have quality commitment and continuous improvement, improving your savings goals?
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- Will you have high productivity low turnover rates at your manufacturing plant?
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- Will you be able to have a win-win relationship with unions maintaining a pro-business environment?
- There are more questions you might be wondering about labor availability, quality and costs if you start manufacturing in Mexico.
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We could answer you in a YES, you will find all of these questions favorably if you offshore your operations to Mexico as a low cost, world class manufacturing hub. However, this story is best told through the more than 200 manufacturing companies already taking advantage of the Mexico Advantage with American Industries Group.
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If you want to learn more about the human resources solutions that American Industries Group can provide for your offshore project in Mexico go to: HUMAN RESOURCES SOLUTIONS.
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If you are thinking on starting up manufacturing in Mexico we invite you to sign up for our webinars where we will share the “whole picture” of what you need to know and do to successfully start up operations in Mexico. Sign up for our webinars NOW!
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Better yet, regardless of the stage at which your company is right now in the relocation to Mexico or expansion of manufacturing operations in Mexico project, we are dedicating expert resources to sit with you on a one-to-one basis by offering you a FREE STRATEGY SESSION that will help you determine a cost-effective roadmap to land your project on your own terms.
- Since we dedicate time only to serious projects, we can only offer a very few spots per month for the FREE STRATEGY SESSION. Register Now!
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