Advantages and Difference Between Manufacturing in Mexico vs China

  • 1 month ago

China is one of the best economic hubs in the whole world. Many countries are outsourcing in china to establish a business for getting more profit. However, the growth rates of Mexico manufacturing has been increased for 20 years.

China’s manufacturers manufacture products such as iron, steel, aluminium, toys, chemicals, aircraft, and many more. Approximately 80% of the world air conditioners are manufactured in china.

Mexico manufacturing companies made products like Aeronautics, electronics, technical devices, TVs, LCD, LED, Semiconductors. Mexico has been rated in the top 100 auto parts producers. From 2012 to 2018, Mexico Automotive export has been increased by 300% and electronic export increased by 120 per cent. That’s why the export of products in Mexico expands from north to south corners of Mexico.

The following are the advantages of manufacturing in Mexico VS Chins:

Wage Stability in Mexico VS China:

China is always considered the best for manufacturing due to the low cost of labour. But now Mexico has been top-rated among the world’s manufacturer. The statics of 2018 shows that the wage stability of business in Mexico is more than of China.

Hourly wages in Mexico have been increased to $4.70, while in China, the hourly wage rate is low. And Mexico’s hourly wage rate is stable over a few years.

Tax benefits of Manufacturer in Mexico:

There is no tax on the export of products in Mexico. And manufacturing in Mexico offers more stability and profit. It is due to Mexico’s participation in the USMCA (United-state Mexico China Agreement) which allows the import and export of products without tax and other conditions. 

The Mexico manufacturing industries allows establishing temporary importation of products. The VAT Certification prohibits all the value-added tax on products and materials. 

Operational Simplicity:

There is no doubt that Mexico is offering more stability and reliability to the manufacturers. The manufacturers can travel between two countries at low rates for training, logistic matters, and for the performance of other quality controls.

Economic Status:

Mexico has a high GDP per capita as compared to China. In the statics data of 2018, the FDI (Foreign direct exchange) rate has been increased by 14 per cent. Mexico has been ranked as the largest trading partner in the world. 

If you are trying to establish your business in Mexico and want to explore the difference between China and Mexico manufacturing, you can visit the manufacturing companies of both countries. 

Several manufacturing industries are working in Mexico as well as in China and serving for more than a decade. The expert manufacturer has the skill to raise the business and gain more profit. The manufacturing industry reduces the time and cost of shipping transit of the products. It is much easier to replace the products if there are any quality issues. 

 

Final words:

To have a robust and dedicated labour and workforce, select the best manufacturer. The manufacturer will help you to meet the need of the industrial sector and will raise your business. 

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