It is simple to know why companies like Intel and LG have chosen to expand their activities in Mexico. The electronic pioneers aren’t alone in looking for Mexico to be a cost effect base of electronic manufacturing. In order to know why electronic manufacturing Mexico is advancing so fast, check out these reasons:
Developing market leads to better synergy
Electronic manufacturing in Mexico has developed in the past few decades to render help to other industries such as aerospace and automobiles. In the present situation, Mexico is a pioneer in electronic production. It comprises consumer electronic items, automotive electronics and IT related stuff.
In the northwestern side, Tijuana abodes over 120 companies manufacturing several electrical items for aerospace, automobiles and telecommunications. Guadalajara is called the Silicon Valley of Mexico because of the R&D it offers for technology solutions. Companies like HP, IBM and Siemens have been investing in this area since 1980s. Monterrey abodes companies like A.O. Smith, Johnson Controls and Emerson Electric.
Better labor quality at affordable rates
Electronic manufacturing means amazingly skilled labor. There are high levels of quality check required for assembling and manufacturing projects which demands high quality skilled labor. Right from general assembly to hand soldering to quality check, you need skilled labor. The positions are difficult to fill in America and Europe.
But with the advancement in Mexico’s electronic manufacturing industry, training has also grown. There are top notch universities offering customized training to manufacturers and their team. CEFTA and Sonora offer training to the workforce on complex manufacturing skills with special tools.
It has created over 28000 electronic manufacturing employees in Mexico who are available competitive wages.
The federal tax incentives here are the first thing which attracts manufacturers here in Mexico. The free trade agreements offered by the country are stupendous and better than any other nation. It offers shelter to those who work under Mexico’s IMMEX program.
Shipments get affordable
A lot of manufacturers operate in Mexico because it is an affordable way to enter the giant US market. Mexico offers competitive labor option to low operation costs in comparison to the US. It also offers low transporting freight charges to USA and this is why a lot of companies manufacture here. A lot of US companies find it affordable to visit Mexico for operations than going to other nations. The travel advantages offers executives with better quality oversight to complicated procedures performed at foreign sites.
With biggest reserves of silver and mines of zinc, gold and copper in the world, Mexico offers great supply of in-demand electronic components and hence manufacturers can enhance logistics by sourcing local things.
Support to commence start-up
More and more manufacturers are considering enhancing their operations in newer places to lower risks to supply chain. Electronic companies find Mexico as a great market to speed their growth. By working with a professional shelter service provider, electronic producers can start their production in as less as 30 days. So, why wouldn’t a producer seek this opportunity?