Answers To Manufacturing Frequently Asked Questions
Isn’t China the best destination for manufacturing?
A decade ago the answer would probably have been yes, but currently the Chinese minimum wage has risen to the same level as Mexico. Compound that with shipping and logistics costs, and Mexico is now the more economical choice.
Will I lose control of quality?
Apart from being AS-9100D certified, under a shelter program, you have direct and total control over what quality assurance measures are implemented.
Will we taking jobs from USA workers?
The lower level production jobs are usually what get transferred to Mexico. This isn’t necessarily due to the labor savings only. The truth is, even in times of high unemployment, these jobs are very difficult to get filled by U. S. workers. With the cost savings that these companies experience, they become more competitive in the marketplace. This makes them stronger and increasingly able to hire even more U.S. workers to do the more complex assemblies and core competencies.
Is Mexico safe to do business?
Despite the negative image the national media reports, the violence is concentrated in a few large cities, and among drug gangs. No U.S. or legitimate Mexican businesspeople have ever been targeted. Agua Prieta has not experienced any of the violence of other larger border towns. We have always been a quiet, family-oriented community of about 100,000 citizens.
Should we only transfer the monotonous and low skilled jobs?
Though these are usually the first operations that companies transfer, Mexico is fast becoming a destination for low-volume, high-mix production. With its highly educated and trained workforce, we are capable of handling much higher-level assemblies. We are currently doing wire harness, motors and fiber optic assemblies for the military and aerospace industries.