According to the experts, Mexico has now replaced China as the most cost competitive country in the world for companies manufacturing products for the U.S. market.
Mexico offers significant benefits to manufacturers, including a low-cost highly trainable labor pool, most advantageous shipping costs to the U.S. when compared to other overseas or near shore countries as well as a favorable exchange rate. In contrast, Chinese contract manufacturers are facing rising wages, increasing energy and commodity prices, and an unfavorable exchange rate.
Mexico’s proximity to the U.S. market allows manufacturers to better serve their U.S. customers. In Mexico, manufacturers can meet its customers’ demand for just-in-time delivery, which is especially important in industries where demand is volatile and customers try to keep inventories low. Mexican manufacturers can also meet emergency or rush shipments more effectively than any other countries contract manufacturers without exorbitant cost additions. |
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Logistics
Nova/Link is involved with the client from the initial stages of project development all the way through shipping of finished products. We operate as a contract manufacturing partner, as the manufacturing arm of our clients’ company. As such, our clients designated and approved personnel have full access to the facilities. Providing our clients with this level of access assures that our clients maintain control of their products through the combined cooperation with our management team.
At commencement, the client provides the raw machinery, materials and initial structure to manufacture their product. Once Nova/Link is trained, the client bears no responsibility for the day to day running of the program other than to lend their intellectual support. Nova/Link also manages compliance with Mexican laws and U.S. Customs.
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Advantages in Mexico
Nova/Link's close proximity to the U.S. offers clients significant advantages when compared to other popular manufacturing countries. Nova/Link can offer superior service at a competitive price. In a world where many retail distributors need just-in-time delivery, manufacturing in Mexico means products are days, not weeks or even months, away. The ability to ship by truck, instead of by air or sea, further reduces shipping costs, though our distribution center can certainly accommodate intermodal shipping when the need arises.
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In addition to cost savings during shipping, Nova/Link’s proximity to the end-markets shortens the supply chain and allows clients to more accurately forecast production needs and reduce the risk of overproduction by acting in real time to the demands of the market. This, in turn, allows for clients to reduce their working capital by lowering inventories of both raw materials and finished products. The shortened supply chain also means Nova/Link is adept in meeting our clients just-in-time delivery needs. |
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