US companies in Mexico: Why are they choosing this country?

There are a lot of US companies in Mexico; people know that, but for many years even more companies are making the smart decision of coming to this country to settle. Why are they choosing Mexico? For experts in foreign investment the reasons are obvious; nonetheless, we will explain them here, since everyone should have access to this valuable information.

What’s so special about Mexico? Well, the list could go on and on; if we focus on business and investment, there are four main reasons we want to address.

Direct connection

Mexico is the United States Southern neighbor; when you share a border with a country, receiving material and sending final products is way easier than doing it with someone else. Take Tijuana as an example: crossing the border to the US can take from less than an hour, depending on the traffic.
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Manufacturing competitiveness

Despite the great location, some investors don’t see Mexico as an option better than China or other Asian countries. But the low cost of manufacturing in this country is something that should be considered. The salary of workers is perhaps what determines the difference between one total cost from one country to another. Of course, this does not mean a decrease in quality.

Trade agreements

International agreements between Mexico and the United States, such as NAFTA, have improved their commercial relationship and added value to American business in Mexico. Other programs, such as IMMEX, make it possible for maquiladoras to get a tax and tariff exemption for temporarily materials imported into Mexico and then sent as finished goods to a foreign country.

Quality

Mexican workforce add an extra value to any of the processes they carry out. They are known for their skilled work and their effort to exceed expectations. International standards are set in the American companies that reside in Mexico, so the final goods are always of the best quality.

Now you get to be on the investors shoes and realize why you would choose this country, right? If you need more information, don’t hesitate in contacting us. At Tijuana EDC we are ready to provide the information you need.

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