It’s the same story with many companies who consider contract manufacturing. They grow, begin exceeding in-house production capacities, decide to find a contract manufacturing partner, and realize outsourcing is just too difficult and confusing. This guide will walk you through the first considerations to evaluate, which questions to ask, and how to know contract manufacturing is right for your organization.
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For nearly two decades, US manufacturers saw China as an optimum location for assembly operations – but reshoring from China is becoming a new trend. Due to a myriad of factors – from labor prices to fuel costs to infrastructure – US manufacturers are now bringing their operations back home. The trend is reversing. China is no longer considered the better option across the board. Reshoring to the US and especially nearshoring to Mexico are becoming more and more popular.
As simple as it may sound to reduce manufacturing costs, many producing companies are often at a loss. But the plain fact is, it does not matter how popular your product if you can’t sell it at a profit. It pays to understand these key ways to reduce manufacturing costs and increase profitability.
When US President Donald Trump announced in March that he would be imposing a 25% tariff on imported steel and 10% on imported aluminum – and in May that US allies would not be exempted – it was domestic manufacturing that responded negatively to the news. Recent news indicates US manufacturers may increasingly outsource production to avoid not only the price increase on inputs but also the added cost of exporting goods to countries imposing retaliatory tariffs on US goods.
Partnering with a shelter manufacturing service to take advantage of Mexico’s maquiladora program has phenomenal advantages. Small, medium, and large producers can each find unique benefits for their operations south of the border – if they go about it right.
In the interest of avoiding unnecessary inventory storage and management, many assembly plants take advantage of Just in sequence (JIS) manufacturing. This process is highly specific and detailed, but assembly lines minimize wasteful buffers by utilizing this streamlining technique.
Optimizing supply chain management is no longer just a mere business function. It is a vitally important business process. Manufacturers and producers miss out on substantial profit potential by overlooking key steps to simplify, shorten, and optimize. This is what you need to know to maximize the potential of your end-to-end supply chain.
What is Mexico’s relationship to manufacturing? How affordable is manufacturing in Mexico? And what legal framework governs import/export manufacturing in this Latin American country bordering the world’s largest consumer market? This overview will answer these and other questions, showing how and why Mexico came to be a manufacturing powerhouse and outsource location of choice for many of the world’s most prestigious companies.
Of the many choices companies face when producing products, outsourcing manufacturing ranks among the most difficult and confusing. There are numerous benefits from utilizing manufacturing outsourcing services in many cases, but there are also pros and cons to be considered. Furthermore, there are numerous ways to outsource, and not all of them make sense in […]
Most manufacturing executives will agree that outsourcing production to a foreign country is difficult. But shelter manufacturing simplifies the process for companies and benefits them in ways many executives are unaware of. Let’s explore some of the many benefits afforded to manufacturers who outsource to Mexico via a shelter company.