Why our newest clients are setting up in Mexico
While our two newest clients couldn’t be more different in makeup or profile, both were motivated by the same factors when they chose Entrada Group for their first Mexico manufacturing facility.
Both Estron and AAkron Line needed cost-competitive production in Mexico, they had to setup operations relatively quickly, and both sought to lessen reliance on Asia, where concerns about supply chain logistics and other risk factors are becoming too much for many companies to bear.
Rather than opt for greenfielding their own facility in Mexico or working through a contract manufacturer in Mexico or Asia, both companies chose to form a strategic partnership with Entrada Group, to support their new operations in North America.
The management teams of both companies turned to Entrada Group to provide everything needed in Mexico: manufacturing space, compliance know-how, local logistical expertise, talent acquisition and training, startup support and more. Entrada’s decades of Mexico experience and base of operations in the country made opening a production facility in Mexico a simple, systematic process – even for specialized manufacturers bound to the highest standards
These are their individual stories.
Estron – Lessen Asia Risk
Estron is a Danish manufacturer that specializes in miniature components for hearing instruments, audio products, security and two-way communication systems. Their customer base is global and pan-industry. The 25-year-old company has production locations in Vietnam, Denmark and now Mexico, having setup operations at Entrada’s Zacatecas facility early in 2022.
Following a swift setup and launch period of under 100 days, Estron grew headcount quickly in Mexico, ramping up to a total of 50 employees with plans to grow by about an other 60% by year’s end.
Mexico isn’t Estron’s first production location outside of its home country, as the company established production in Vietnam in 2020. The challenges of this experience led Estron to seek the guidance and expertise of Entrada Group in launching and running its first production location in Mexico.
AAkron Line – Solve Labor Shortage
AAkron Line has been making products for the promotional industry since 1967. Headquartered in Buffalo, New York, the company also has operations in Tennessee.
In both production locations, the company had been struggling to find enough labor. The management team had been sourcing product for delivery from Asia as well as Mexico. But rather than continuing with that contract manufacturing strategy in Asia or Mexico, AAkron executives decided to establish the company’s first operations outside of the US, opting for Entrada’s manufacturing campus in Zacatecas.
AAkron Line launched operations on July 1 after a short startup period lasting just a few months. The operation is already at 40 employees as of this writing.
Next Up: US-Based Wire Harness Manufacturer
Finally, we have a third client that will be joining our Zacatecas manufacturing campus later this year. Like many wire harness producers, this midwestern company is also struggling with labor issues in the US: too many workers are retiring and not enough replacement workers are volunteering to take their place.
The company plans for project startup in October and we’ll share more information in the near future about their plans and progress.
Your First Step?
Like all Entrada clients, our newest clients chose to work with Entrada Group in Mexico to lessen risk, leverage our decades of experience and know-how, and partner with us over the long term. Are you ready to take your first step to Mexico? Then please join our next monthly webinar.