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Why your company should Soft Land in Mexico

The people who invest in Mexico have an excellent opportunity to do business

31 de agosto del 2018

For just about 30 years, Mexico has sought after a way towards more prominent financial receptiveness, concentrated on the progression of global exchange and attracting investment flows.

Today the country has an attractive business environment, legal security, one of the largest networks of free trade agreements in the world, widely developed economic sectors and a highly competitive cost profile.

The people who invest in Mexico have an excellent opportunity to do business thanks to the size and attributes of the nation's domestic market, but they can also take advantage of their competitive commercial infrastructure to bring their production made in Mexico to the world and build up global business with great advantages.

The NAFTA area is the biggest and most powerful market on the planet and, with a specific end goal to take an interest in it, organizations from everywhere throughout the world are relocating their production or services capabilities to Mexico, USA or Canada. The Foreign Direct Investment (FDI) in Mexico are for the most part started from United States, Canada, Europe, Japan and Korea and the industries which are creating such investments are the automotive, aerospace, electronics and reverse logistics sectors. While the majority of the OEM's and Tier 1 organizations have already established operations in the territory, there are many Tier 2 and Tier 3 organizations' enthusiasm for following their client base lead; these organizations are the ones who could benefit greatly of a Soft-landing service with a specific end goal to expand their chance of achievement in a new region.

 

Mexican Cost Advantage

One of the essential advantages is gigantic cost funds the nation gives to organizations. Mexico boasts highly skilled, dependable labor that is 80 percent less expensive than the cost of the U.S. In addition, organizations there approach modern infrastructure that is affordable. The operating costs in Mexico are far lower, which is the reason expanding to Mexico is such a smart decision.

Manufacturing Economies

Beside the way that the nation's nearness to high-demand markets infers manufacturers have the chance to export products easily and inexpensively, organizations working in Mexico approach a wide pool of clients inside different businesses. As the fifth-biggest exporter of PCs, the 6th biggest aerospace provider and the eighth-biggest automotive manufacturer, organizations have the chance to work with a developing base of OEM's and Tier 1 organizations that need a local supply of products.

Workforce Demographics

The demographics that characterize Mexico's workforce and network make manufacturing conceivable in the nation. Mexico's populace has a median age of 26, contrasted with 37 for the U.S., and a total labor force of 47 million people. More importantly, though, is the fact that while Mexico's labor is cheap, its workers are additionally qualified. Currently, 115,000 engineers graduate every year.

Market Diversification

As Mexico opened its borders to exchange, when it marked on toward the North American Free Trade Agreement, its economy wound up enhanced, which invited new business there. Mexico's hearty economy, culture and condition enable business to adjust balance risk effectively.

 

The advantages of doing business in Mexico may seem unrealistic, but the reality is, expanding to the nation is not that difficult because ease of entry is one of the fundamental advantages for doing business there. Because of the similar culture and language, strategic location between the U.S. and Latin America and great business atmosphere.

Launching an operation in the country is simple and Xipe has the experience in soft-landing to help you establish a large-scale operation in Mexico. Contact us

 

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