If you have a product idea that you’d like to turn into reality, you’ll need to partner with a manufacturer to execute your vision. When you’re ready to begin the process of finding the best manufacturing company for your needs, your two main choices will likely be contract manufacturers or turnkey options. Contract manufacturers in Mexico and turnkey companies abroad both have pros and cons, and here, we share the key differences between the two.
The Main Differences
China is known for its turnkey manufacturing process. With a turnkey manufacturer, one company will handle all aspects of the product’s life cycle, including design, assembly, packing, and shipping. This method of manufacturing is often appealing to business owners who lack access to a design team or prefer to work with fewer members of the supply chain. Although turnkey manufacturing is often streamlined and convenient, be aware that there may be extended lead times and more expensive shipping costs when compared to a contract manufacturer located near the U.S. border.
Another option that’s becoming increasingly prevalent is contract manufacturing. Contract manufacturing is a viable choice for numerous industries and has the potential to be an excellent solution for companies without in-house manufacturing abilities. A reputable contract manufacturer will provide high-quality outsourced services, often with a quick turnaround time. If you choose a contract manufacturer in Mexico, you’ll also benefit from reduced shipping costs once your project is complete.
Why Turnkey and Contract Manufacturers Operate Differently
Although China has long been considered the most efficient country for all manufacturing needs, the tides are beginning to turn. While turnkey manufacturing may be the best decision for some companies, contract manufacturing may make more financial and logistical sense for others.
There are certainly benefits to turnkey manufacturing operations, but it’s important to be aware that language and communication barriers are challenges that often occur while working with turnkey manufacturers in China. If you run into an issue while manufacturing abroad, it will be more challenging to catch and fix in a timely manner. When working with a contract manufacturer in Mexico, you’ll have a better chance of enjoying straightforward communication and more predictable labor costs due to the strong U.S.-Mexico partnerships.
If you’re in the process of finding a manufacturer, contract manufacturers in Mexico may be the most efficient option for your business. Although turnkey manufacturers in China or other countries may be an appealing choice, contract manufacturers often come with a unique set of perks. Our CaliBaja team is proud to employ more than 1,000 highly-skilled workers, and our U.S.-based owners make it easy to communicate during each step of the process. Ready to learn more about how we can help? Please contact us. We’d love to learn more about your project and potentially move forward with a plan of action.
