Bridging the Border Gap: U.S. or Mexico We Have a Solution
Re-shoring to North America is growing trend. As China’s costs increase, Mexico’s cost competitiveness has increased to point where some studies show it to be the lower cost option. Similarly, studies have indicated the U.S. cost is only about 5 percent higher.
What does that mean to companies who wish to cut transportation costs and finished goods inventory pipeline by manufacturing in North America? The short answer is that products with minimal labor content may be more cost effectively manufactured in the U.S. However, products with higher labor content may be more cost effectively manufactured in Mexico. Why the difference? Because crossing borders adds cost and a highly automated production process costs nearly the same amount on either side of the border.
Protech Global Solutions gives you a choice in manufacturing options. You can manufacture entirely in the U.S., entirely in Mexico or divide production or subassemblies between countries based on what makes sense in terms of lowest total cost. And because our facilities are roughly 30 minutes of travel time apart, you can cost effectively visit both locations in a single day.
However, our cost effective solutions don’t stop there. We offer a full range of logistics and warehousing solutions which include:
- Cross docking
- Inventory management
- Bulk storage
- Vendor-managed inventory
- Inbound material tracking
- Customs/logistics support
- Export consolidation
- Product distribution to end markets
In short, a call to Protech can help you cost out a scalable North American manufacturing and distribution strategy customized to the requirements of your project that takes advantage of cost benefits on both sides of the border.
Let’s Call Protech
Challenge: A customer had new product concept, but didn’t have a bill of materials, approved vendor list or product specification.
Solution: The team at Protech helped the customer identify the needed components and cost for the product. They also helped develop all needed documentation.