The “re-shoring” trends of companies who choose to produce goods and site their manufacturing facilities closer to the consumer are beginning to accelerate. According to recent findings by the BCG in their Global Manufacturing Cost-Competitiveness Index, Mexico now has average manufacturing costs lower than those which are found in China. The drivers of wage growth, productivity, energy costs, and exchange rates are changing many common assumptions often held about which countries offer the best manufacturing environment within the modern global market.

Mexico now has average manufacturing costs lower than those which are found in China

Although Asia, Latin America, and Eastern Europe have typically been thought of as lower-cost options when compared to North America and Western Europe – their advantages are eroding. Relative to almost all other leading global exporters, the US and Mexico have shown the most dramatic levels of improvement to their overall standing as cost-competitive manufacturing options. Also, BCG found that China’s cost advantage over US-sourced manufacturing has shrunk to less than 5%, which means now more and more companies are looking closely at the advantages to producing their products nearer to consumers. Read more about these Shifts in Global Manufacturing Costs.

Above is a photo of the Milwaukee Electronics’ Tecate, Mexico electronics manufacturing facility during construction in early 2012.  We opened the facility in 2013 and are fully operational.  See a video with our Facility Tour, or Contact Us for more information.