Whitepaper: Perceptions Don’t Match Reality When it Comes to Manufacturing in Mexico
With margins tightening and competition intensifying, global automotive manufacturers of all size are under pressure to minimize operating costs without sacrificing product quality or operational effectiveness. As a result, many are exploring cost-competitivemanufacturing locations. An open-trade philosophy, proximity to US, Canadian and South American markets, and cost-effective and highly-skilled labor are all factors in favor of Mexican manufacturing.
Despite growing awareness of Mexico’s advantages, however, many global automotive manufacturers have hesitated to establish their own production footprint in the country.
In 2015, Entrada Group conducted original survey-based research of global automotive manufacturers, including companies already in Mexico as well as those not currently manufacturing there, to look at common barriers. Respondents were asked about their priorities and experiences, as well as their perceptions about operating in Mexico. Collectively, their responses illustrate some common perceptions about Mexico that don’t always match the reality on the ground.
By handling and taking responsibility for all services not related to production, Entrada Group addresses all of these concerns, enabling manufacturers to focus on high-quality production.
This whitepaper summarizes those key findings and reveals important insights global automotive manufacturers need to know, such as:
- The quality of Mexico’s supply base
- The perceptions global automotive manufacturers have of Mexico
- Common challenges international manufacturers face in Mexico
- Customers and opportunities Mexico presents
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About the Survey
The survey sought opinions of these companies on the common challenges faced when exploring the option of manufacturing in Mexico, or expanding current operations. Respondents from companies that already have operations in Mexico say a strong local supply chain is paramount to their success. And while most rate their supply chain favorably, only about one in six call it excellent and nearly a quarter consider it poor. No single concern dominates; instead, a diverse range of worries and uncertainties present a daunting challenge, particularly for smaller global automotive manufacturers.