Economic & Political Stability

When outsourcing your manufacturing operation to an offshore location, you should pay very close attention to the stability of the relationship between the country you are outsourcing to and the country you are importing to.

If the country you are outsourcing your manufacturing to shows signs of economic or political instability, you are putting your operation at risk as changes to tax / duty laws, employment laws, or exchange rates can have enormous effects on the viability of your offshore operation. For example, take a look at how China’s rapidly evolving economy has been negatively impacting the many foreign manufacturing operations that have been outsourced there Рhigher prices, falling quality standards, increasing tariffs, etc.

Mexico on the other hand has a very long history of doing business with the United States and the economies of the two countries are so dependent on one-another that it would be virtually impossible for either country to operate without a good relationship with the other one. Add the security that NAFA brings and Mexico is as safe of a bet as you are going to find in this world!

In fact – Mexico has made incredible strides over the past few decades to improve their reputation as stable economy. The World Bank ranks Mexico with the 12th largest Gross Domestic Product in the world, and with a population of over 100 million people, it has the 4th largest per capita income in Latin America.