Infrastructure in Mexico: A Modern Framework for Manufacturing Operations

October 4, 2012

Since the 1960s manufacturing in Mexico has taken off. Over the years, advancements in technology and infrastructure have made Mexico a hot spot for manufacturing operations. Increasing shipping costs of overseas freight has sparked the need for businesses to look closer to home for manufacturing solutions that are more cost effective.

Today, it is a fact for most global economies that their products are not always produced in their home country. Baja California and the Guanajuato Industrial Corridor in central Mexico should be of particular interest to American business as Asian companies continue to invest in the region.

Nissan, Mazda and Honda have all expanded into central Mexico where three-fourths of all automotive operations already exist. As a result, the engineering and quality that consumers have come to expect are being made available in closer proximity to North America and at a lower cost.

For this and several other reasons to be discussed, manufacturing in Mexico is advantageous to U.S. businesses.

Advantages of Mexican manufacturing
• Connectivity to industrial Mexican cities and U.S. commercial centers

• Upgraded highway design

• Modernized airports and railways

• Upgraded computer technology

• Educated workforce

Logistics Made Easy
The Port of Ensenada is located within 200 miles of Baja, California and the U.S. ports of Long Beach and San Pedro, making distribution to the western U.S. and Asian markets simpler. Because the Guanajuato Industrial Corridor enjoys a central position in Mexico, it weaves its way through the major hubs of Mexico City and Monterrey, as well as Queretaro and Aguascalientes.

Mexico’s Infrastructure is 21st-Century Ready
Infrastructure is the physical and organizational framework that allows a system or society to function properly. Infrastructure in Mexico has grown to become a modern system of airports, railways and highways that allow for effective and efficient transportation of goods. Mexico’s infrastructure makes shipment of end products more reliable and iconvenient, and makes use of just-in-time principles possible, which help to reduce the cost of carrying excess inventory.

Technology in Mexico has facilitated the faster speed of telecommunication lines, which has improved Internet and other electronic communication. Manufacturing facilities have also been upgraded to incorporate the latest computer innovations.

In an effort to preserve profits, manufacturing in Mexico is a viable option for business for all these reasons. Manufacturing of automobiles – traditional and green alike – automotive parts, high end tires, and hi-tech engines have all opened operations in Mexico. Advancements in technology and the modern infrastructure in Mexico have become highly coordinated for the current business world. Additionally, compared to other low-cost nations, Mexico has been more effective in enforcing intellectual property and patent laws.

Investing in Mexican manufacturing is an investment for U.S. companies to protect against skyrocketing costs of production overseas while maximizing profits.