If you’re in the process of learning more about manufacturing options, you may have heard that products made in Mexico vs. China are of higher quality and are simpler to ship. As Mexico grows as a manufacturing power, there are several avenues that are worth exploring. Although there are many manufacturers in Mexico, not all are registered as maquiladoras. Here, we share more about this type of company and why they’re the preferred option for manufacturing.
What is a Maquiladora?
A maquiladora, which means “twin plant,” is a manufacturing facility located in Mexico, and many are operated by U.S.-based companies. The maquiladora program was established in the 1960s to benefit both the United States and Mexico. When the North American Free Trade Agreement (NAFTA) expanded the maquiladora program to end tariffs, these manufacturing facilities began to flourish. There are now thousands of maquiladoras that produce a wide array of products.
Why Are Maquiladoras Advantageous to U.S. Businesses?
If you’re in need of a manufacturing company for your business, you may be interested in working with a maquiladora. This program offers many benefits to U.S. companies, including:
- Duty-free imports. When a manufacturer is registered as a maquiladora, it qualifies for duty-free imports. This ultimately translates into lower costs for the U.S. companies that import the finished products.
- Affordable labor. When you’re looking for a cost-effective labor solution, a maquiladora may be just as competitive as a manufacturer based in China.
- Highly-skilled labor. Employees in maquiladoras often possess specialized training and are highly skilled in their craft.
- Peace of mind. Since maquiladoras must receive approval from the Mexican Secretary of the Economy, you can feel confident about your decision to work with these companies.
- Reduced lead times. Since maquiladoras are typically located near the border, you’ll often benefit from reduced lead times. Regardless of where the manufacturing plant is located in Mexico, the shipping time will almost certainly be faster than when working with an overseas manufacturer.
When you’re in need of a skilled and trustworthy manufacturer, look no further than a maquiladora. There’s often a significant difference in the quality of products created in Mexico vs. China, while the cost is similar. As a maquiladora, we’re able to provide exceptional service for a wide array of industries while maintaining competitive pricing. Quality and customer satisfaction are of the utmost importance to us, and we’re proud to have a talented team of 1,000+. If you’d like to learn more about manufacturing in Mexico, please contact our team. We’d love to speak with you about our process and learn more about your project.
