Who Wants to Manufacture in México?
What About NAFTA?
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.
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