Outlook: China and Mexico

Over the past decade many U.S. based electronics manufacturers shifted production to Asia to benefit from low cost labor. As wages and air freight costs from China continue to rise, companies are taking a closer look at how to improve their bottom line, therefore supply chain strategies are playing a bigger role in ensuring a company’s profitability.

Understanding key advantages that China, Mexico and the U.S. offers can uncover significant savings opportunities. Direct labor costs are just one of the issues considered and the cost improvement they offer can be quickly eliminated when transportation and inventory costs are taken into account. Although wages in China are still lower than in Mexico, saving on China air freight costs by shipping in bulk to Mexico makes the difference in labor cost insignificant.

For companies whose end market is the Americas, Mexico offers an excellent choice for outsourcing when considering increased competition for air freight space and shipping costs from China, insurance, product delivery and time to market.

Manufacture in China, Package for Retail in Mexico

China is a prime location for lower cost labor and high volume production. Mexico and China together can refine your supply chain, add flexibility to your operation and reduce your China shipping costs.

Save up to 75% on China air freight costs. Discover this innovative and cost savings solution:

Ship products in bulk to Mexico, products then go into Mexico duty-free; and the product is packaged in Mexico and returned to a warehouse in the U.S. or shipped directly to the end user. (View Operating Model).

NAPS has identified this current trend and has proof it can optimize your operations. Speck Products and Monster Cable both experienced high cost savings and increased flexibility in production. (Read case studies).

Let NAPS show you how utilizing the two largest manufacturing hubs, China and Mexico, can transform your profitability. Why wait? Contact NAPS to conduct a complimentary thorough logistics analysis on your current operation.