Supply chains across the world are having to be reevaluated due to low cost manufacturing countries, such as China, raising their wages. Seeing these rising costs in China that continue to impact manufacturers, Mexico is becoming a beacon for viable near-shoring. There are numerous benefits of manufacturing in a low cost region, including steady labor wages and affordable education provided by the government. The increasing trend of manufacturers re-shoring their plants from Asia is incredibly beneficial for the Mexican government.
While many companies are weighing the benefits of offshore or near shore manufacturing as well as re-shoring, these factors must be thoroughly considered:
Since the 2008 economic recession, wages and oil prices have skyrocketed, resulting in a diminishing ROI for smaller businesses who don’t have the bargaining clout of large manufacturers. Many manufacturers have also seen a shortened cash flow due to a longer supply chain cycle. While re-shoring is the decision for many global manufacturers, the option of near-shoring has drawn heightened interest, especially over the last 2 years as the market crossed over, allowing manufacturing in Mexico to be less costly than it is in China.
Juki in Mexico
Juki Automation Systems (JAS), Inc., a world-leading provider of automated assembly products and systems and part of Juki Corporation, has a dedicated sales team in Mexico, represented by Jose Carlos Rodriguez. Rodriguez has more than 12 years of experience in SMT processes, process development, equipment sales and project evaluations. Rodriguez provides customer support, training and optimization of Juki equipment throughout Mexico while also working as a member of the Juki sales team to pursue leads, discuss equipment opportunities, provide quotes, and close business for Juki.