Why Mexico is More About Plastics These Days

Commentary by JP McDaris

Orbis, a US-based manufacturer of reusable packaging products, recently broke ground on a new manufacturing facility in Silao, Mexico, where they will produce reusable plastic packaging, according to Plastics News.

Although the company already has three service centers in Mexico, where they manage and clean reusable plastic packaging, the new Silao location will be their first production facility in the country. By producing in Silao, Orbis is able to free up capacity for growth in the US, as well as create capacity for growth in Mexico as well.

Orbis’s move is yet another example of manufacturers establishing on regional production hubs to serve markets in their proximity. “As Orbis grows, we want to add capacity where our customers need it,” said Norm Kukuk, vice president of marketing and new product development for Orbis. Orbis expects to be in their new facility by Q4 this year.

This move also demonstrates the opportunity manufacturers see in the Mexican market itself. Orbis isn’t transitioning existing production from the US to Mexico and moving work south of the border. They are initiating entirely new production lines, rather than just moving existing lines. It is further evidence of the opportunity for growth Mexico represents, as opposed to simply a location for low-cost labor.
Source: Plastics News

 

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