Why México?


Who Wants to Manufacture in México?

  • Manufacturers with an edge on the competition are having their products made and assembled in Mexico.
  • Manufacturers who see how global the market has become, realize that maintaining only national operations could be detrimental to future growth and even survival.
  • Manufacturers who want to offer their clients the best products at the lowest prices are jumping at the opportunity to make this win-win situation work for them.
  • Manufacturers who want to take advantage of lower fixed rates and labor costs see the benefits of moving all or portions of their assembly operations to Mexico.

What About NAFTA?

  • NAFTA was just the beginning of a partnership that has changed the Americas.
  • NAFTA abolishes within 10 years tariffs on 99 percent of the goods traded between Mexico, Canada, and United States.
  • NAFTA removes most barriers on the cross-border flow of services, allowing financial institutions, for example, unrestricted access to the Mexican market by 2000.
  • NAFTA protects intellectual property rights.
  • NAFTA removes most restrictions on foreign direct investment between the three member countries, although special treatment (protection) will be given to Mexican energy and railway industries, American airline and radio communications industries, and Canadian culture.
  • NAFTA allows each country to apply its own environmental standards, provided such standards have a scientific basis.
  • NAFTA establishes two commissions with the power to impose fines and remove trade privileges when environmental standards or legislation involving health and safety, minimum wages, or child labor are ignored.

Arguments For NAFTA

NAFTA should be viewed as an opportunity to create an enlarged and more efficient productive base for the entire region. One short-term effect of NAFTA has been the movement of production facilities to Mexico by US and Canadian firms to take advantage of the lower labor costs. This movement of production to Mexico has mainly occurred in low-skilled, labor-intensive manufacturing industries where Mexico might has a competitive advantage. Many have been benefited from such a trend. Mexico benefits because it gets needed investment and employment. The US and Canada benefit because the increased incomes of the Mexicans will allow them to import more US and Canadian goods, thereby increasing demand and making up for the jobs lost in industries that moved production to Mexico. US and Canadian consumers benefit from the lower costs, and hence prices, of products produced in Mexico. In addition, the international competitiveness of the US and Canadian firms that move production to Mexico to take advantage of lower labor costs are enhanced, enabling them to better compete with Asian and European rivals.

Cost Analysis

Great savings due to lower labor costs and fixed rates.
Mexico’s geographic location presents a competitive advantage to all companies for manufacturing operations abroad. At the same time, freight costs low are kept to a minimum.
The movement of operations and assembly processes to Mexico allows companies to expand operations and allows focus on other areas.
Average rates for US manufacturers in USA: $15.00 USD per hour (fully burdened)
Average rates with Grupo SION in Mexico: $8.00 USD per hour (fully burdened and including freight).

Ex. If your assembly or manufacture process requires 250 people, you can save with Grupo SION as follows: (250 people x $7.00 USD per hour x 45 Hrs. a week).

Weekly …… $78,750.00 USD

Monthly…..$341,250.00 USD

Yearly…..$4,095,000.00 USD

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