Until recently China has always been high on the list when it comes to outsourcing. The benefits of low labor costs in China have offered many companies the opportunity to gain a competitive advantage. However, manufacturing in China isn’t easy sailing. It has always come with a wide range of challenges from intellectual property protections, quality issues and logistics concerns, and especially now with the US-China trade war and the COVID-19 crisis, China is becoming a less than favorable manufacturing location.
Given the instability and uncertainty around trade which appears likely to continue into the foreseeable future, spreading the risk away from China is a good strategy. In this new world in which manufacturing location choice will be based as much on political as on economic choices, it’s important to have a Plan-B/second source in place. While a shift in manufacturing may not seem so simple the rationale for nearshoring production has become more compelling as of late.
Mexico has always been a top destination for U.S. Companies, and with the growing trend of moving manufacturing back to North America, Mexico is now seen as a preferred low cost alternative to China. More affordable labor costs, a highly educated workforce, and Mexico’s proximity to the United States and tariff-free access are just a few reasons why Mexico is top of the short list. For decades, Mexico has supported major high-tech manufacturing industries and has been home to thousands of leading multinational firms in aerospace, electronics, medical device, automotive and other industry sectors. As the cost of doing business in China continues to widen, Mexico now offers companies better opportunities, better margins and a more agile manufacturing relationship coupled with the value of shorter supply chains and closer connections between design, manufacturing and market.
PARPRO is a full service design and manufacturing company that has wide expertise, multiple locations and provides the flexibility to manufacturing where capabilities, costs and logistics make the most sense. Strategically located over the US border, Tijuana, Mexico has been home to PARPRO for over 20 years. PARPRO Mexico is a 135,000 sq.ft. state-of-the-art facility offering cable and harnesses assembly, PCB assembly, machining, sheet metal fabrication, and integration and assembly. Currently PARPRO has plenty of capacity and can provide assistance to companies in transferring their manufacturing back to USA/Mexico. If you are looking to move your production and are interested in knowing more, please contact us and discover the benefits of partnering with PARPRO.