It’s the same story with many companies who consider contract manufacturing. They grow, begin exceeding in-house production capacities, decide to find a contract manufacturing partner, and realize outsourcing is just too difficult and confusing. This guide will walk you through the first considerations to evaluate, which questions to ask, and how to know contract manufacturing is right for your organization.
For nearly two decades, US manufacturers saw China as an optimum location for assembly operations – but reshoring from China is becoming a new trend. Due to a myriad of factors – from labor prices to fuel costs to infrastructure – US manufacturers are now bringing their operations back home. The trend is reversing. China is no longer considered the better option across the board. Reshoring to the US and especially nearshoring to Mexico are becoming more and more popular.
Recent China tariffs are complicating the US-China trade relationship, causing many to rethink their outsource strategy. But there might be more to the story. The tariffs President Trump has imposed against China and their retaliatory tariffs are making things difficult, but there are indications China has been losing manufacturing prior to this.
When US President Donald Trump announced in March that he would be imposing a 25% tariff on imported steel and 10% on imported aluminum – and in May that US allies would not be exempted – it was domestic manufacturing that responded negatively to the news. Recent news indicates US manufacturers may increasingly outsource production to avoid not only the price increase on inputs but also the added cost of exporting goods to countries imposing retaliatory tariffs on US goods.
Renegotiations have concluded for the new NAFTA deal, and all three countries are declaring the agreement a victory. US President Trump long derided NAFTA as a failure and a liability for the US economy. He campaigned on a promise to scrap the North American Free Trade Agreement and replace it. But how different is this […]
Partnering with a shelter manufacturing service to take advantage of Mexico’s maquiladora program has phenomenal advantages. Small, medium, and large producers can each find unique benefits for their operations south of the border – if they go about it right.
With US President Donald Trump’s tariffs going into effect, manufacturing in China is becoming more costly and problematic. Firms looking to remain competitive and to keep production costs low while selling to the US market have real concerns about remaining in China. For some, a new alternative is beginning to look a lot more attractive […]
More jobs are coming to the United States from an unlikely source – China. Typically known more for competing with the United States for jobs, there has been a recent slurry of manufacturing leaving China headed for more profitable shores. It seems rising wages and fuel costs are driving the shift to a large extent. […]
Intellectual property is among the most valued assets companies today can have. Developing, protecting, and deploying this property is essential to success. Fortunately, Mexico has a history of detailed protections, effective enforcement, and an environment that inspires investor confidence. Companies seeking to manufacture in Mexico should take steps to adequately understand the way intellectual property protection in Mexico works, and how they can most benefit from these protections.
What is Mexico’s relationship to manufacturing? How affordable is manufacturing in Mexico? And what legal framework governs import/export manufacturing in this Latin American country bordering the world’s largest consumer market? This overview will answer these and other questions, showing how and why Mexico came to be a manufacturing powerhouse and outsource location of choice for many of the world’s most prestigious companies.