Whether you’re preparing to launch your product or you’re thinking about relocating operations, it’s important to consider the geopolitical stability of your manufacturing partner. Unfortunately, many regions across the globe are experiencing turmoil due to wars and other types of upheaval. If you’d like to explore contract manufacturers in Mexico, our team would love to help. Here, we share more about Mexico’s stability in comparison to other countries, such as Ukraine and China.
Chinese Manufacturing is Faltering
For decades, China has dominated the manufacturing industry. Although there’s no denying that this country still has an incredibly strong manufacturing sector, Mexico surpassed China as the top trade partner to the U.S. in 2023. China’s relationship with the U.S. remains tense as these two superpowers are in a standoff about trade disputes and tariffs. Compounding the issue, manufacturing in China is no longer as inexpensive as it once was. This is partly due to rising costs of raw materials and fuel, and China’s shrinking population problem is expected to contribute to higher labor costs in the near future.
Russo-Ukrainian War Hobbles Ukraine
Although Ukraine isn’t considered a major trade partner to the U.S., there is no denying that the significance of the Russo-Ukrainian War is having an impact on the cost of raw materials. Ukraine is a country rich in mineral resources and has been instrumental in the production of iron and steel. This country had a strong manufacturing sector prior to the start of the war in 2022, but has since been derailed by the conflict. Now, the country is primarily focused on producing ammunition and artillery for its armed forces.
Mexico is Expected to Remain Stable
Compared to other regions across the globe, Mexico is an excellent location for manufacturing. In addition to its proximity to the United States, Mexico has a strong labor force with a disproportionately young population. The two countries have a mutually beneficial relationship, with advantageous trade agreements that are continuing to attract U.S. partners.
As much of the world is experiencing turmoil or tension, Mexico stands out as a stable location for manufacturing. If you’re interested in learning more about contract manufacturers in Mexico, our team is here to help. Quality manufacturing is key to the success of your brand, and we take pride in our highly trained workforce and breadth of knowledge. With more than 40 years in business, we have the experience to manufacture for a wide array of industries. To learn more about our process and discover if we’re the right fit, please fill out a contact form. A member of our team will contact you shortly to discuss your project and determine how we can help.
