When you need a partner who develops products and production as an extension of your own manufacturing footprint, contract manufacturing in Mexico may be the best choice you can make.
Maquiladora is the Spanish word for a Mexican factory that exports its products to a foreign country. Many of the greatest companies in the world use maquiladoras to manufacture their goods. But maquiladoras are also extremely popular for small- to mid-sized companies due to the many benefits of using them.
Some of the world’s leading companies that source manufacturing from Mexico are:
- General Motors
- And many, many others
Why are so many companies moving to Mexico for manufacturing purposes? And why should your organization manufacture in Mexico? In short, Mexico manufacturing is well-revered around the world because of its low cost and quick delivery of high-quality goods. Learn some more specific benefits below.
The 10 Advantages of Contract Manufacturing in Mexico
Here are 10 of the many unique benefits of contract manufacturing in Mexico for your electronic assemblies, transformers, and inductors.
1. Requires a Much Lower Investment
Purchasing and maintaining manufacturing facilities, equipment, and operations is incredibly expensive. However, those costs are removed when you shift your manufacturing to Mexico. Also, the laborer wage in Mexico is much lower than in the United States (and even China) and is stable and steady.
This means the savings:
- Are passed on to your when your manufacturing is outsourced
- Can be accurately forecasted and budgeted
2. Has a Quick Startup Timeframe
Mexico has been a go-to manufacturing location for many decades and this experience shows in the expertise and professionalism of the contract manufacturers there.
It only requires a few weeks to get up and running with a Mexico contract manufacturer. The startup process is so quick because of strong U.S. trade agreements with Mexico, its wide variety of manufacturing options, and a huge supply of talented, hard-working labor.
3. Allows for Greater Economies of Scale
Since a contract manufacturer’s overhead costs are spread among multiple clients, you can make smaller batch orders without overpaying for them.
You can also meet higher or fluctuating market needs with larger orders on demand. This high-mix, low-volume flexibility is even available for custom-engineered products.
4. Gives You Local Control
While some companies like a very hands-on approach to every detail in the manufacturing process, many don’t have the time or resources to do so. By outsourcing to Mexico, you can focus on your own job and leave the rest up to the experts on the ground.
- Maintaining high product standards
- Following workplace best practices
- Abiding by all labor laws
- Meeting every import/export regulation
Should you want to make an on-site visit, travel to Tijuana, Mexico, is very simple and can usually be done in a day.
5. Uses a Highly Talented, Trained, and Efficient Workforce
The long history of Mexican manufacturing has led to a workforce that spans multiple generations and industries. The working base comprises diverse, skilled, and efficient people with several years of experience (and many are bilingual).
6. Removes the Burden of Regulatory Compliance
Mexican contract manufacturers are responsible for all regulatory compliance. Your U.S. company has virtually no obligation to implement and uphold factory, production, labor, or product quality standards.
7. Reduces Shipping Costs and Tariffs
Due to its proximity to the United States, Mexico’s shipping costs are uniquely low compared to shipping products from virtually any other country. We’re talking hundreds of dollars versus thousands that you’ll have to pay for shipping.
On top of those savings, the import tariffs are much lower than in other parts of the world.
8. Shortens Shipping Times
Shipping times are a huge concern of companies these days. Fortunately, goods manufactured in Mexico can reach U.S. destinations with lead times as short as 24–48 hours.
9. Keeps Patents and Intellectual Property Safe
The trend in counterfeit goods and stolen intellectual property has risen steadily over the last few years. This can be a significant problem for companies that not only rely on their products for revenue but for those that need to keep their end products safe for every application and end user.
Mexico’s IP protection laws and their enforcement of those laws are already very strong. However, they’ll be strengthened even further once the modernized NAFTA trade agreement is passed. You’ll never have to worry about the authenticity of your products and the security of your trade secrets.
10. Gives High-Quality End Products
Quality standards are high in Mexico, and companies who contract their manufacturing to maquiladoras receive very high product workmanship and customer service.
Your Electronic Assemblies, Transformers, and Inductors Can Be Contract Manufactured in Mexico
For standard or custom electromagnetic product development, prototyping, and contract manufacturing in Mexico, Schott Magnetics is your answer.
We provide the following products and services in Tijuana, directly across the border from San Diego, California:
- Automated electrical testing
- Coil winding
- Hand assembly
- Integrated assemblies
- IPC soldering
- Joining PCBA with custom magnetics
- Potting and encapsulation
- Wire terminal crimping
What to Look For in an Electronic Assembly, Transformer, and Inductor Contract Manufacturer in Mexico
Narrow down your search for a contract manufacturer in Mexico with these “must-haves”:
- A world-class quality system that’s ISO-9001:2015 certified
- Certifications that include:
- UL 60601
- Products that are:
- RoHS compliant
- Lead (Pb) free
- High IP protection and enforcement
Schott Magnetics is the top choice for the design and manufacture of custom electromagnetic components and services for the following industries:
How to Get Contract Manufacturing in Mexico
Schott Magnetics has made a name for itself in Mexico because we deliver the highest quality electronic magnetics components with extremely demanding deadlines. Our full turnkey manufacturing and labor cost-based assembly options give customers the most flexibility at a competitive price.
Enjoy the many benefits of having a reliable contract manufacturer in Mexico. To access our outstanding products and services backed by over 70 years of experience, please contact us today!