Manufacturing In Mexico Takes Center Stage In Recent Survey
Manufacturing In Mexico offers many advantages for near-shoring operations, according to a recent survey conducted by AlixPartners’ Vice President, Russ Dillion. Substantiated by Entrada Group’s own experience, the three most common benefits for Mexico manufacturers; considered vital to the operations of the 63% of respondents surveyed, are lower inventory costs, lower freight costs and improved speed-to-market times. According to Dillion, Risk mitigation was also important along with ‘cultural alignment’ and ‘time-zone advantages’ for easier management coordination.
Significantly, Dillion also adds ‘in-transit inventory’ expense as being of particular concern to those undertaking manufacturing in Mexico operations since distance bloats expenses. In fact, lower freight costs and speed-to-market are the two more critical advantages cited by Mexico manufacturers. A full 73% of companies surveyed currently produce goods off-shore or plan to within the next five years. Of those considering off-shoring, 43% cite Mexico as the #1 most desirable location beating out China, Brazil, Eastern Europe, and India. Even the U.S. loses preference as a near-shoring option by a sizable 19%.