Manufacturing In Mexico Key Conference Topic
Manufacturing In Mexico advantages were highlighted recently by Steven Belli and William Dorn, two key U.S. Source One executives attending the National Congress Manzanillo for 2011. Their comments indicated some important elements contributing to further near-shoring activity, a topic any manufacturer in Mexico with supply chain concerns has increased interest in. Why? Several reasons exist in the rapidly changing global environment, not the least of which include Japan’s earthquake and tsunami consequence and grave instability in the Middle East.
Both Belli and Dorn identified three characteristics making manufacturing in Mexico attractive in this current climate.
- First, the ‘maquiladora system’ which has been steadily developing production infrastructure along the U.S. – Mexican border makes re-importing goods produced in Mexico back to the U.S. cost-effective indeed.
- Second, the IMMEX tax structure recently enacted by the Mexican government eliminates previous taxes while value-added taxes have shrunk.
- Third, the fine-tuning of NAFTA which facilitates manufacturing in Mexico, lowers costs and ease of movement without mileage restrictions being imposed. It additionally contributes to American companies outsourcing production to a well-trained and literate Mexican workforce.