Mexico Leads the Way in Supply Chain

Commentary by Doug Donahue

This article, “New Focus on Mexico as a Key Supply Chain Location,” from Area Development pinpoints five reasons why Mexico is a leading supply chain location, as identified in research by Jones Lang LaSalle. These reasons include ample low-cost labor, affordable land, short transport times and a highly skilled workforce. Another is the Strategic Tax Zone Regime, which allows for the tax-free storage and repair of goods.
It is not very widely known that Mexico has a tax regime for exporters that is equal across the country. Manufacturers looking to benefit from low-cost manufacturing in Mexico are not limited to a certain number of industrial or enterprise zones, as they are in China. This is essential, because it gives foreign-based manufacturers in Mexico the ability to do a more intensive site selection process, with greater flexibility. They have the latitude to pick a site that meets all their needs, without having to select from those the government offers.
Source: Area Development

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