Maquiladora companies are manufacturing operations unique to Mexico. The term maquiladora stems from the Spanish word “maquila,” the currency millers were paid for grain processing in colonial Mexico. The maquiladora program began in the 1960s when the Mexican government created this structure to promote industrial growth and job creation along the border. Although these factories were initially limited to assembling goods for export, the program has grown to encompass a broader role on a global scale. More than 3,000 maquiladoras are now in Mexico, and the industry is a significant source of the country’s GNP. Here, we share how maquiladoras benefit industries across the globe and are particularly advantageous for U.S.-based businesses.
The IMMEX Program
The maquiladora program has been instrumental in integrating Mexico as a key player in the global supply chain. The IMMEX program is the framework of the maquiladora industry and defines the regulations that help international trade flourish. The IMMEX program allows international manufacturing companies to import raw materials, components, and machinery into the country tax, tariff, and duty-free (so long as the company upholds its part of the export agreement). Companies with IVA/IEPS certifications are offered an 18-month VAT credit, which is applied to the export of imported goods. Certifications under the IMMEX program make it considerably more inviting for global companies to manufacture in Mexico.
Specialization in Numerous Industries
In addition to the lower cost of labor and tariff advantages, the maquiladora program has become specialized in many industries. Some of the top sectors that Mexico manufactures include the automotive, electronics, medical devices, and textiles industries.
Since its inception in the 1960s, the maquiladora program has grown considerably and now plays a crucial role in helping global industries thrive. An increasing number of countries now partner with Mexico, and the country has attracted considerable foreign investment.
If your company is searching for a cost-efficient manufacturing solution, consider partnering with maquiladora companies. As a participant in the maquiladora program, we can help your business save money (often a significant amount) while ensuring the highest quality of products. As one of the early contract manufacturers in Mexico, we’ve amassed a team of more than 1,000 strong and offer multiple locations to best suit the needs of our clients. If you’re ready to learn more about what we do and how we can help, please contact our team. We look forward to speaking with you and learning more about your project.
