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April 1, 2022 19 mins
In Episode 1 of Tetakawi's Manufacturing in Mexico Podcast, David McQueen and Ricardo Rascon discuss five reasons companies should consider manufacturing in Mexico. They touch on workforce characteristics, logistics, trade barriers, market access, and operating cost. On top of everything else companies have to worry about in terms of tariffs and geopolitical risks, they now have to consider pandemics as a threat to supply chains. Based on the interactions had by the team at Tetakawi, many companies seem to be putting Mexico at the forefront of their strategies. First, David identifies five critical factors critical in choosing a manufacturer: manpower, logistics, trade barriers, market access, and operating costs. Beginning with manpower, David highlights the expansive pool of available labor in Mexico. In addition to considering the ability to hire manpower now and in the future, companies also need to be able to retain the people they have hired and ensure their workforce remains engaged and productive. Many industrialized regions of Mexico have an abundance of people equipped with the experience and training needed in manufacturing skills. The border Mexico shares with the U.S. gives them an important advantage in terms of logistics, expanding into the modern highways and rail systems. Addressing trade barriers, David reveals that Mexico has more free trade agreements than any other country. Additionally, their involvement in the USMCA Trade Zone provides the best possible access to Canada and the U.S. In fact, Mexico is far more likely to offer secure access to the U.S. than most other low-cost countries for the foreseeable future. Speaking of market access, Mexico has large manufacturing clusters in many different industries. Finally, David discusses Mexico's competitive edge regarding manufacturing costs. As this episode draws to a close, David touches on a few other benefits Mexico offers: affordability of electricity and natural gas, an agreeable climate, and intellectual property protection. Thank you for joining us on Manufacturing in Mexico! Don't miss our upcoming episodes, where we'll discuss gateways to entry and how to select a location in Mexico.
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