Do you own a manufacturing business? Are you tired of paying high wages to the workers? Is high tax ratio a big issue for you? Or do you face difficulty in paperwork?
No need to worry now. Mexico is the solution to all of your manufacturing problems. It is inviting and welcoming manufacturers all over the world. Here are some key features of why Mexico is the best country for manufacturing goods.
Work ethics: Mexico is considered the country with a very low rate of workplace problems. The workers in the country face very strict ethical rules. Mexico has a large workforce due to which the workers face competition in finding jobs. Ones someone has the job he has to obey all the restrictions and rules to stay in the job.
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FTA: One of the catching features of manufacturing in Mexico is its Free Trade Agreement. It allows the manufacturers to sell their goods to 44 countries around the globe, almost duty-free. The agreement includes America, Europe, Africa, and Central Asian countries. It is a very attractive aspect of Mexican manufacturing law. It is the reason manufacturers all over the work are considering Mexico for there next destination.
Shelter service companies: If an investor wants to set up a manufacturing company in Mexico, it can be very tricky and costly for him. The solution to that is the shelter service providing companies in the country. These companies will handle all the work of your company, from finding the workplace to hiring staff and labor to gather all the machinery. They also do all the paperwork for your manufacturing unit. These companies charge hourly, and the cost ratio is cut by almost half if you work with them. There are many shelter services providing companies working in Mexico that include Tacna and Intermex.
Automotive cluster: Mexico has become the automotive hub. Most of the automotive giants have assembled their automotive manufacturing plants in Mexico. Brands like Chrysler, Ford, GM, Honda, Toyota, Kia, and Nissan are settled there. It is due to the good working and investing environment provided for the investors. This environment has given a boost to the economy of the country. Due to these big companies, the automotive parts making companies are also settling their units in the country.
Cheap labor: Another great aspect of manufacturing in Mexico is that it has very low wages. According to a study by Statista in 2018, the wages in China are 5.51$, while in Mexico, they are quite lower 4.45$. Cheap labor is one of the most important concerns of the investor. This reason has led all the big manufacturing companies of the world enter Mexico with big investments.
Conclusion: The above mentioned are the key points for establishing a manufacturing business in Mexico. Anyone with an idea of going into the manufacturing business will look up to all these aspects before investing in any country. In the coming years, China may face a reduced foreign investment, and Mexico can take its place as the world’s manufacturing hub.