Contract Manufacturing in Mexico is very different than a Shelter Operation, and is another strategic way to improve your performance by offshoring or nearshoring to Mexico.
When you Contract Manufacture in Mexico, you provide us the product specifications, and we will provide you a turn-key quote based on a piece price cost delivered to a defined location, most likely in the USA. We use our equipment, raw material, direct and indirect labor.
Our manufacturing process capabilities include assembly (both light and heavy metal fab), welding, injection molding, machine shop, liquid coating operations (paint), metal stamping, pad print, and sorting and rework. Screw machine capabilities of up to 1″ are being added at this time. As we are growing, we are also in the position to make investments for new equipment as necessary, so please allow us to quote on any process that you would be looking to source outside of your organization.
Nearshoring is the process of setting up manufacturing operations very close to the U.S. border. The benefits of nearshoring include reduced transportation costs and proximity to skilled, managerial labor in the U.S. Nearshoring makes it easier to put manufacturing operations on the same time zone as the parent company, allowing management to problem-solve without time difference delays. It also makes it easier for management on both sides to attend face-to-face meetings, making for a more effective, congenial, productive, collaborative experience, and reducing cultural differences.
Nearshoring can be, but is not always as cost-effective as moving production deep within Mexico, where operational expenses are likely to be lower. But the savings seen from lower transportation costs, coupled with efficiencies gained from access to skilled US managers make nearshoring a good solution for many US manufacturers. It’s important not to underestimate the cultural differences of the two workforces: that’s where working with a consultant like North American Operations Consulting will save you time and money.