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Whitepaper: Learn the True Costs and Risks of Your Mexico Operation
Manufacturing executives contemplating a cost-competitive location initially ask a very common question: “How much can we save?”
Unfortunately, many companies researchinga Mexico manufacturing operationeither don’t run through a sufficiently comprehensive cost model or they lack insight into all the costs they will encounter in a foreign location. This can lead to hidden costs that will only be identified further down the road, after it is too late.
This white paper showcases a cost model analysis and focuses on the true costs of a Mexico manufacturing operation. An accurate cost model allows you to compare costs between, say, your current operation and an alternative manufacturing facility you may be considering.
Topics covered in the white paper include:
- Cost Planning–An overview of elements included in a cost model and insight into the types of costs manufacturers should plan for
- Average Total Operating Cost–Insight into true costs in setting up a Mexico manufacturing operation
- Benefits of a Cost Model–Why it’s essential to perform a cost model –and the risks companies incur if they don’t
- Tailored Analysis–The importance of customizing each cost model
- The Cost Advantages of Mexico–A review of the factors that make Mexico cost-advantageous compared to other global manufacturing locations.
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A true cost model analysis allows you to compare costs at two locations in the same country or region, taking into account all costs that will be associated with production and support. It can also give you a sense of the costs of your competitors.
It is important to note that a thorough cost model must include all costs associated with doing business in Mexico, except for raw materials. A cost model is not a startup model; a cost model must include all ongoing Mexican costs. A startup model is useful, but only for the initial phase. To be accurate, the cost model must include complete operational costs the manufacturer incurs in the course of production.