
Contract manufacturing has a number of advantages over in-house manufacturing. However, this is only true if you hire the correct contract manufacturer.
Mexico is rapidly transforming into a major manufacturing hub. It's not just because manufacturing in Mexico is significantly less expensive than in the US or Canada. It's also because many Mexican manufacturers offer low-cost, high-quality parts.
Some people worry if "Made in Mexico" signifies the product is of inferior quality. They are unsure if it is comparable to "Made in China." Actually, quite the opposite is true. It's great to see "Made in Mexico" on merchandise. Mexican producers create some of the most high-quality goods available.
Unskilled labor is common in China and other international industrial enterprises. Here's how they'll be able to save costs. Unfortunately, low-skilled labor is associated with low-quality work and a high rate of errors.
The vast majority of Mexican producers do not fit into this group. In reality, Mexico generates more persons with bachelor's degrees in Construction, Engineering, and Manufacturing per capita than most other countries, including the United States.
Manufacturing from other countries gets a negative rep. It's partly because it has modest start-up costs but a lot of hidden extra charges. In addition to production costs, you may have to pay for the following expenses or issues: High shipping costs, large minimum orders, costly supply chain disruptions, increased risk of intellectual property theft, and communication issues are all factors to consider.
For these reasons, many businesses steer clear of manufacturers based outside of the United States or Canada. It's understandable, because many businesses prefer not to deal with these issues. Unfortunately, Mexican manufacturers are frequently lumped in with these.