Why Manufacturing Companies from Industrialized Nations Are Turning to Prince Manufacturing for North American Operations
Today’s business climate presents some serious challenges for manufacturers from industrialized nations. Between rising labor costs in Asia, the threat of more tariffs, the growing risk of intellectual property theft, and the quest to be as near to your market as possible, many companies are reconsidering their options for doing business in the United States. Historically, the answer was Mexico, but this may not be enough. The dual-nation solution may be the answer, and that’s where Prince Manufacturing comes in.
What sets Prince Manufacturing apart? Why are more companies from industrialized nations looking to nearshore in the United States? Here are twelve reasons:
- Complete turnkey manufacturing services
You don’t need multiple service providers. One company should handle all your manufacturing needs. Prince provides comprehensive manufacturing services for your needs:
- Electrocoating (E-coating)
- Powder coating and liquid painting
- Metal fabrication
- Assembly and sub-assembly services
- Supply chain and logistics
- Lean manufacturing engineering
- ISO and UL certification
This single-source option helps foreign companies eliminate a lot of overhead. With turnkey manufacturing services, you can worry less about establishing operations and more about developing and selling products. Prince’s lean manufacturing engineers will consult with you to provide valuable insight to your product and processes that can be applied beyond basic manufacturing.
- Proximity to North America’s lucrative markets
For some sectors, there is no place quite like North America. North America’s automotive, aerospace, appliance, and electronics markets provide considerable opportunity. Being close to your markets can mean:
- Shorter lead times
- Lower logistics costs
- More customer responsiveness
- Lower inventory carrying costs
- Higher inventory turnover
Prince is in manufacturing centers near major U.S. cities and ports, connected to major rail lines. This proximity provides clients with shorter lead times and lower freight costs compared to long-distance overseas manufacturing.
- Protection from tariffs and trade barriers
Trade policies change frequently. In the next few years, there is a strong possibility that the United States could once again enact tariffs on products made in China. Even if not, who knows what the trade picture will look like in the future? For now, there are numerous incentives to manufacture in Mexico and the United States.
By choosing Prince Manufacturing, you can protect your product from tariffs. Not only that, but goods made in Mexico can be duty-free if they’re manufactured under the United States-Mexico-Canada Agreement (USMCA). And, if you operate within the U.S., there’s no question about any import-related concerns.
A nearshoring strategy will keep you in a safe position while allowing you to control costs and protect your margins.
- Better protection of intellectual property
Intellectual property protection is paramount to many businesses. It is the lifeblood of a product. Offshoring in China brings the threat of intellectual property theft. Mexico and the United States are both safer options for protecting your intellectual property.
Not only do both Mexico and the United States have enforceable laws that allow you to pursue your interests in court if your intellectual property is violated, but the people in Mexico and the United States are also well-informed on intellectual property. Lawsuits involving intellectual property are uncommon, and when they do happen, they are generally prosecuted with great fervor.
You can feel comfortable knowing your intellectual property will be protected when you nearshore with Prince.
- Lower freight and logistics costs
Operating in Mexico or the United States will bring lower freight and logistics costs compared to manufacturing overseas. Operating in Mexico means operating close to the United States. As a result, you’ll save on ocean freight compared to operating overseas.
Companies can enjoy better lead times and shorter inventory carrying costs. In addition, if you choose to nearshore in the United States, you can achieve the same advantage by not having to contend with import duties and taxes.
- Manufacturing and market proximity
With its United States and Mexico operations, Prince can help companies from industrialized nations by manufacturing in close proximity to major North American markets. Whether it’s medical devices, industrial automation, or consumer electronics, operating in North America is more convenient. Prince can put your product in the hands of distributors faster than you would otherwise. You can operate close to your market while keeping an eye on sales trends and be able to pivot accordingly.
- Operational flexibility
Many customers choose to operate in Mexico because they can manufacture for less there. With Prince Manufacturing, you can operate in both Mexico and the United States. Your ability to manage costs and production will be unmatched. Having a presence in both countries will allow you to adjust to a changing market quickly. Your company will be able to respond more quickly to economic conditions and business opportunities.
You can manufacture more or less depending on what the market demands. If you’re nearshoring in the United States, you’ll be better equipped to shift production between your Mexican and U.S. operations.
- Lower freight and logistics costs
Running operations in Mexico or the United States will result in lower freight and logistics costs compared to manufacturing overseas. Having operations in Mexico puts you closer to the United States. You’ll have lower ocean freight costs compared to an overseas manufacturer.
Companies can realize shorter lead times and lower inventory carrying costs. Plus, if you nearshore in the United States, you can enjoy the same benefits by not paying import duties and taxes.
- Operational flexibility
Customers will nearshore in Mexico because they can manufacture there for less. With Prince Manufacturing, you can nearshore in both Mexico and the United States. Your operations will be less complicated and give you more operational flexibility. Having operations in both countries will allow you to make more adjustments to the changing market.
Your company will be able to respond faster to economic shifts and opportunities.
You can make more or less, depending on the market. If you nearshore in the United States, you’ll be in a better position to shift production between your Mexican and U.S. operations.
- Operational flexibility
Customers will nearshore in Mexico because they can produce there for less. With Prince Manufacturing, you can nearshore in both Mexico and the United States. Your operations will be less complex and give you more operational flexibility. Having operations in both countries will allow you to make more adjustments to the changing market.
Your company will be able to respond faster to economic shifts and opportunities.
You can make more or less, depending on the market. If you nearshore in the United States, you’ll be in a better position to shift production between your Mexican and U.S. operations.
- Experienced manufacturing partner
Manufacturing can be risky. If you operate overseas, there are plenty of challenges. Many manufacturers operating in Mexico have faced challenges. The good news is that the problems are solvable. At Prince, we understand these challenges and how to avoid them. We have over 60 years of experience manufacturing and supplying our products and services. We have an understanding of Mexico and the United States that we have developed over the years.
- We know what it takes to start a business.
- We know what it takes to succeed in Mexico. We know what it takes to be a reliable supplier. Our experience is available to you.
- We’ll save you from making mistakes that we’ve already made.
- We have high standards for health and safety.
- We employ best practices for labor relations.
- We have environmental best practices.
- We have supplier quality management systems. We know what it takes to succeed.
- We can show you how.
- Production options for your product and business
Companies will nearshore in Mexico or the United States because they can find an operation that suits them. With Prince Manufacturing, you’ll have options that work best for you. You can contract us for small production runs. You can set up an assembly line. You can establish a full-scale manufacturing facility.
You can even take advantage of Prince’s nearshore production facilities to contract work. If you have an off-season, you can store your inventory in Prince’s facilities. If you’re expecting a seasonal peak, you can contract Prince to help fill that need.
The options are endless. What you choose will depend on your needs and circumstances. Prince Manufacturing will have options that work for you.
Conclusion
The demand for manufacturing companies from the industrialized world is no longer limited to the traditional need for lower labor costs; they now require agility, security, and proximity to their most important markets. Prince Manufacturing offers all this and more with its dual-country operation, turnkey programs, and 40+ years of experience. Whether you’re looking to lower logistics costs, protect your IP, or increase your flexibility, there’s a way for your company to enjoy North American manufacturing that’s seamless and efficient. By working with Prince, you’ll find a strategic partner that can help ensure your long-term success in the U.S. and Mexican markets.
