Area Development February 2011: Entrada Group|Cost, Risks and Benefits of Manufacturing in Select Latin American Locations
Paul M. Karon of the Entrada Group presents findings of a study on manufacturing site selection in Mexico, Honduras, Nicaragua, and Costa Rica.
Many companies are selecting Latin American locations for overseas facility locations. In a report by the Entrada Group, the costs, benefits, and risks of offshoring manufacturing to Mexico, Honduras, Nicaragua, and Costa Rica are examined.
The study evaluates total delivered costs and other risks in the interior and border areas of these four nations. According to Entrada’s findings, the best sites for light manufacturing are, in order, an interior Mexican location, a border Mexican location, and Honduras. These results are based on direct labor and freight costs.
Entrada Group Principal and President Paul M. Karon will present these results at Purdue University’s Annual Supply Chain Management Conference on February 11. Karon has 20 years of experience in manufacturing in Mexico as an owner and manager in the maquila industry. He selected Zacatecas, Mexico, for Entrada’s first manufacturing park.