Thinking about exploring the possibility of nearshoring? If so, you’re not alone. An increasing number of companies of all sizes are choosing to move manufacturing from China to Mexico. If you’d like to learn more about contract manufacturing in Mexico, we’d love to help you determine if we’re the right fit for your business. Although nearshoring is the right choice for many companies, it’s not a one-size-fits-all solution. You can always count on our team to offer transparency, and during our 40+ years in business, we’ve picked up some tips to help you plan a smooth transition to Mexico. Here, we share insight to help you determine a solid path forward:
Comparing Manufacturing in China vs. Mexico
Before you begin researching supply chain partners in Mexico, it’s important to evaluate whether nearshoring will be beneficial. If any of the following conditions apply to your situation, it’s likely that your best bet is to continue manufacturing in China:
- Your product requires low labor, high machined parts that are entirely sourced in China.
- Quality and location are not your top priorities.
- You prefer not to have an engaged role in the manufacturing process.
- The product isn’t high volume.
- You need high-mix low-volume manufacturing.
- The product is a sewn item retailing at a low cost.
- It’s a startup project with little to no volume.
How to Streamline the Transition to Mexico
If none of the above circumstances apply to your company, there’s a good chance that manufacturing in Mexico will be a great solution. Manufacturing near the border offers a plethora of benefits, such as shorter lead times, high quality products, and lower cost shipping. To plan the transition from China to Mexico, consider the following tips:
- Allow one year of planning and scheduling before completing the nearshoring process.
- Prioritize inventory management. A long-term inventory management plan is essential for minimizing downtime and ensuring that you have plenty of product on hand while the transition is being made.
- Begin production in Mexico with high-volume products. Mexico has a strong manual labor force, so products that require more labor are particularly well-suited for manufacturing here. The more labor that each part number needs, the more consistent our workforce will be.
- Consider the sourcing of each component. For example, if you’re currently sourcing parts from China, this may need to continue until other options are discovered.
- Identify what’s most important for you in the manufacturing process. If you’re interested in shortening lead times, improving quality, changing the country of origin mark, or boosting customer perceptions, then Mexico may be a good fit.
Your manufacturing partner plays an integral role in the success of your brand. With each year that passes, more companies are planning moving manufacturing operations from China to Mexico. If you’re ready to learn more about contract manufacturing in Mexico, our team would love to assist you. First, we’ll discuss your project to determine how we can help. We’re looking forward to hearing from you! Please feel free to contact our team and provide details about your needs.
