Should You Outsource Injection Molding to Mexico?

Many companies today are realizing the benefits of outsourcing. You can turn over some of your production work to another business or let them handle all your needs. Outsourcing to foreign countries makes sense in many cases. However, instead of turning to Asia, there are many benefits to consider when you outsource injection molding to Mexico. Here are some good things about this business strategy to consider.

Shipping

There is a big difference between overseas shipping costs and costs in North America. By keeping your business on the North American continent, you may save a great deal on shipping when you decide to outsource injection molding to Mexico.

Access

Getting products through customs is sometimes costly and time-consuming. This can happen when you have to ship products or materials overseas. However, thanks to NAFTA or the North American Free Trade Agreement, it is much easier to transport products from the United States across the Mexican border and vice versa.

Energy

Did you know natural gas in Mexico is cheaper than in countries like China? Energy is an important part of manufacturing, and in some areas, China pays over one hundred percent more than Mexico for gas.

Worker Wages

In the past, many companies chose China for outsourced manufacturing, because of low Chinese worker wages. However, recent figures show Mexican workers earn as much as thirty percent less than Chinese workers on average. You can save a great deal on employee-related costs by outsourcing your injection molding needs to Mexico.

Communications

It is very important to stay in communication with your outsourced business partner. This makes it easier to solve customer complaints and problems. There is sometimes a significant language barrier between the US and China. However, today, many Americans speak Spanish and many Mexicans speak English, so a language barrier is not much of an issue.

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