You’re probably familiar with offshoring, which is the practice of moving operation processes overseas. Offshoring is typically done to save money, since manufacturing in the U.S. is often too expensive to be practical. For several decades, many American companies have offshored manufacturing to China. However, the tides have begun to turn and nearshoring is now becoming more prevalent. The opposite of offshoring, nearshoring is when a business relocates its operations (namely, manufacturing) to a nearby country. Interested in determining if nearshoring is the best fit for your brand? Here, we share more about manufacturing in China vs. Mexico to help you make a plan.
The Main Factors to Consider
Whether you’re currently manufacturing in China and thinking about nearshoring or just beginning the process of finding the right supply chain partner, there are several questions you should consider. Before you proceed with a decision, determine the answers to these questions:
- Do you own any equipment or production information?
- Who controls your supply chain? With the current hiccups in the global supply chain, nearshoring may allow your company to reduce lead time and cut shipping costs.
- Can Mexico support your manufacturing process? Mexico is growing its manufacturing prowess, and the different regions often specialize in different industries.
- Are you able to assist with setup or would you prefer a hands-off approach?
- Is it cost effective to move all, or just some, of production?
- What is your end goal with your manufacturing supplier? Are you in need of a long-term business relationship, or will a short-term contract suffice?
- Do you have enough inventory on hand to make it through the initial nearshoring process? Although nearshoring may cut costs and lead times in the long run, it’s critical to ensure that your brand (and customers) won’t suffer while the process is underway.
When you’re looking for the most economical solutions for your company, be sure to examine the differences between manufacturing in China vs. Mexico. You may be surprised to discover that nearshoring has the potential to save money and produce a superior product. If you’re interested in learning more about manufacturing in Mexico, contract manufacturing may be the best path forward. This type of manufacturing is often the most straightforward and transparent, especially when you partner with a registered maquiladora. The CaliBaja team has more than 1,000 highly skilled employees who are adept at manufacturing products across a wide array of industries. As an American-owned company, we boast a strong track record of excellent customer service and stress-free communication. We’d love to learn more about your project and determine if we’re a fit for your needs, so please contact us to start the process.
