Initial Costs Of Outsourcing

The decision to outsource manufacturing to Mexico is usually primarily driven by a desire to reduce operational costs – which is easily achievable once low-cost Mexican labor is utilized. However it is very important to understand that just like any other investment that will eventually save you money, there will be an upfront demand for capital before you realize a return on your investment.

The following are a few upfront expenses that should be budgeted for:

  • Freight – all of the equipment, tooling, fixtures, raw material, and any other tangible items needed to run the operation will need to be shipped from its current location to the new location in Mexico.
  • Engineering support – during the initial phases of the project there will be an increased need for engineering support to insure that everything is setup properly and producing according to your specifications.
  • Travel / Training – should be taken into consideration if your project requires travel of either our personnel to your facility or your personnel to ours for training purposes.

Please be aware that this is not an exhaustive list of all of the upfront costs that you should take into consideration when determining if outsourcing your manufacturing is right for you as every project is unique. The best way to plan for the initial costs of outsourcing your operation is to take advantage of our many years of experience and schedule a free consultation today – we can help.