Manufacturing in Mexico
Manufacturing in Mexico has emerged as a compelling choice for businesses seeking efficient and cost-effective production solutions. The strategic location, favorable trade agreements, and a skilled labor force make this country an ideal destination for manufacturing operations. Companies can significantly reduce costs while maintaining high-quality production standards by leveraging Mexico’s proximity to the United States and its competitive labor market.
Central Business Park (CBPark) stands out as a premier option for enterprises looking to establish or expand their manufacturing activities in Mexico, offering state-of-the-art facilities and a business-friendly environment.
Is Mexico a good place for manufacturing?
Nearshoring, the practice of relocating business processes to nearby countries, has become a cornerstone strategy for U.S. companies aiming to enhance supply chain efficiency. The geographical proximity of Mexico offers a strategic advantage, significantly reducing transit times and logistical complexities compared to offshoring to distant countries like China.
This closer location means that goods can be delivered more rapidly, enabling companies to respond swiftly to market demands and reducing the risks associated with long supply chains.
One of the most compelling reasons for nearshoring to Mexico is the cost advantage. Mexico’s labor costs are competitive, providing substantial savings for manufacturers. As labor costs in China have increased, many businesses have shifted their production closer to home. The implementation of the United States-Mexico-Canada Agreement (USMCA) further enhances this advantage by ensuring tariff-free trade and fostering deeper economic integration among the three countries.
The logistical benefits of nearshoring to Mexico are significant, with over 50 entry ports between the U.S. and Mexico facilitating efficient shipping. This reduces the time products spend in transit by up to 75%, which is crucial for companies relying on just-in-time manufacturing processes.
Mexico also boasts a highly skilled workforce, particularly in engineering and technical fields, supported by robust educational partnerships and vocational training programs. This talent pool enhances communication and collaboration between U.S. companies and their Mexican counterparts.
Mérida, Yucatán, exemplifies the benefits of nearshoring in Mexico. The city has become a burgeoning industrial hub, with modern infrastructure and logistical facilities that attract numerous companies.
Industrial parks like Central Business Park provide state-of-the-art facilities, comprehensive services, and a secure environment, making them ideal locations for businesses looking to establish a strong presence in the region. CBPark’s strategic location, along with its advanced infrastructure and service offerings, positions it as a premier choice for companies aiming to capitalize on the nearshoring trend.
What is the status of manufacturing and industry in Mexico?
From January 1999 to September 2023, Mexico attracted US$346 billion in FDI in manufacturing , underscoring its appeal to international investors. This influx of investment has spurred technological advancements and the adoption of Industry 4.0 practices, including automation, robotics, and the Internet of Things (IoT).
The country’s business-friendly environment is characterized by tax incentives, simplified regulatory procedures, and robust support for research and development (R&D). These policies encourage innovation and make it easier for foreign companies to establish and expand their operations.
Finally, innovation is at the heart of Mexico’s manufacturing strategy. The country has embraced lean techniques and cutting-edge technologies to improve efficiency and reduce costs, enhancing production quality and speed while maintaining competitive pricing.
CBPark: your strategic partner for manufacturing in Mexico
Central Business Park offers a strategic advantage for companies looking to establish manufacturing operations in Mexico. Located in Mérida, Yucatán, it provides state-of-the-art infrastructure, 24/7 security, and a vibrant business environment. The park’s prime location in the Hunucmá industrial corridor ensures quick access to key logistics points, including airports and deep-sea ports.
CBPark’s industrial lots and warehouses are designed to meet the needs of light and medium industries, offering modular spaces and comprehensive services. With federal, state, and municipal permits, CBPark guarantees legal certainty and operational efficiency for businesses.
Investing in CBPark means partnering with a premier industrial park that supports your business growth and success. Contact us today to learn more about our industrial lots and how we can help you achieve your manufacturing goals in Mexico.
