If you have a promising idea for a product or you’re already in the process of researching manufacturing solutions, it’s essential to have an understanding of production costs. There are many benefits to contract manufacturing in Mexico, including reduced lead time and lower shipping rates. Whether you opt for contract manufacturing in a neighboring country or choose an overseas supply chain partner, set up costs will be part of the equation. Interested in learning more about expenses commonly associated with getting production started? Here, we share more about what to expect so you can prepare for launching your product:
An Overview of Set Up Costs
When you choose a qualified contract manufacturer, the site may have most or all of the equipment that’s necessary to produce your items. Your manufacturer may have everything required to create a product, but set up costs will be included to configure the machines for the new batch. There are some instances in which your manufacturer will need to create or order customized solutions for the production process, however. In cases such as these, you’ll incur additional set up costs, which will then be passed along to the consumer. Common set up costs include:
- Additional HVAC
- Dedicated high-amperage electrical circuits
- Custom tooled equipment or molds (which can be provided by our CaliBaja team or a third party)
- Personnel training and travel
- Build-outs of the production and warehousing space
There are many expenses associated with manufacturing, and additional set up costs aren’t uncommon. As you begin to research the best manufacturers for your needs, it’s important to consider the overall picture. Although a contract manufacturer may need to provide a customized set up, the savings on labor and shipping often more than make up for this expense. When you’re ready to learn more about contract manufacturing in Mexico, we can help. Please contact our team to discuss your project, and we’ll determine if we’re the right fit. Whether your product requires special equipment and/or materials or it’s a straightforward process, we’d love to help. As a registered maquiladora with more than 40 years of experience, we’re adept at handling production for a wide array of industries. We look forward to helping your product(s) become reality, so please reach out for a consultation.
