Mexico Cost Savings

Mexico manufacturing costs savings and high quality has transformed the nation from a low-cost country to the “best cost country”.

When the following manufacturing costs are considered together:

• Labor (direct and indirect)
• Transportation
• Raw materials
• Inventory
• Capital equipment/overhead
• Duties
• Exchange rate

Mexico manufacturing now stands as the number one cost-effective global option. According to a study recently published by AlixPartners, Mexico manufacturing cost savings today surpass those enjoyed by companies in both China and India.  For example, in 2003 Mexican manufacturing workers made over twice what their Chinese counterparts did. Today the Mexico cost savings gap for direct labor has narrowed to 1.15 times.

The Offshore Group’s Mexico manufacturing Shelter Plan business model enables companies to benefit from Mexico’s advantageous cost position by leveraging economies of scale, and thereby reducing and controlling Mexico indirect, overhead and administrative costs.

The Offshore Group’s Mexico Outsourcing Solution for manufacturers brings further Mexico manufacturing cost reduction to its client base by generating and leveraging economies of scale in the following areas:

• Accident Factor (Mexican Workmen’s Compensation)
• Building Maintenance and Security
• MRO purchases
• Industrial Infrastructure Maintenance
• Worker Transportation
• Absenteeism and Turnover Reduction Programs and Services
• Freight and Shipping
• Brokerage Fees and Permit Acquisition
• Direct and Indirect Labor Recruitment