In this episode of Tetakawi’s 'Manufacturing in Mexico' Podcast, host Ricardo Rascon is joined by industry expert David McQueen to delve into the dynamic growth of Mexico's manufacturing sector. With Foreign Direct Investment (FDI) in the sector reaching $19.1 billion in 2023, up significantly from previous years, the duo explores the burgeoning opportunities and emerging challenges in site selection for manufacturers looking to expand into Mexico. Key Highlights: Growth Drivers: David McQueen sheds light on the factors propelling Mexico's manufacturing sector, including lower costs compared t ..read more

In this episode, David McQueen welcomes Leticia Rodriguez of The ILS Company to discuss the logistics and shipping considerations for manufacturing in Mexico. To begin, Leticia explains what IMMEX is and how it affects shipping in Mexico. The IMMEX certification allows companies to manufacture in Mexico, import raw materials duty free and export their finished product. Companies are left with a tax advantage and the opportunity to take advantage of all the benefits Mexico has to offer. Then, hear how the Mexican trucking industry differs from trucking in the U.S. Leticia recommends you definit ..read more

In this episode, Ricardo Rascon welcomes back David McQueen to build on their previous conversations about manufacturing in Mexico. Today, they discuss the one-time start-up costs manufacturers must take into account when expanding into Mexico. David explains that there are generally 5 types of non-recurring costs for new operations to consider. These are legal and incorporation costs, leasehold improvements and facility expenses, regulatory fees and expenses, physical assets and the internal staffing and training costs. The conversation begins with discussing legal and incorporation costs. Fi ..read more

In this episode, Ricardo Rascon and David McQueen build on their previous discussions about real estate and labor costs for manufacturers who expand to Mexico. In this conversation, Ricardo and David focus on other costs associated with manufacturing in Mexico: utilities, transportation, and more! Starting with utilities costs, David clarifies that, for most companies, the utilities costs to be considered are electrical power, water, and possibly natural gas. Companies also need to plan for the costs of communications and services, which function a lot like utilities. Ricardo and David talk in ..read more

In this episode, host Ricardo Rascon and David McQueen build on their previous conversation. After focusing in the last episode on manpower costs in Mexico, Ricardo and David shift their attention today to discussing real estate and building costs in Mexico. To begin, David clarifies that foreign individuals and corporations can acquire and lease property or buildings just the same as Mexican nationals can. In some markets, however, commercial properties are closely held, and owners often favor leasing income over selling new real estate. The most common scenario for industrial manufacturing i ..read more

In this episode, Ricardo Rascon and David McQueen, discuss the costs of manufacturing in Mexico and what information companies need to know about labor costs before starting projects there. First, David discusses how the cost to manufacture in Mexico is closely tied to manpower. In Mexico, the labor law system is federal and you have to pay wages to employees in the form of pesos per day, not dollars per hour. The employer pays a rate per day that must equal or exceed the minimum wage, which could be around 172.87 pesos per day to 260.37 pesos per day on the border. Employees must work a certa ..read more

After focusing in the last episode on the different modes of entry for expanding into Mexico, Ricardo and David shift their attention today to where to manufacture in Mexico and how companies can work through the initial site selection process. First, David identifies the most important criteria companies should take into account when choosing a manufacturing site in Mexico. These factors include accessibility, manpower services, customers, cost and security. Then, he divides the industrialized areas of Mexico into six options and provides pros and cons for each one. The first region is the on ..read more

In this episode, Ricardo Rascon welcomes back David McQueen to build on their previous conversation. After focusing in the last episode on why expanding into Mexico might make sense for your company, Ricardo and David shift their attention today to how a company can get started with this expansion process. They discuss modes of entry to consider, factors to weigh in choosing one, and David's own experience and advice to manufacturing leaders! There are several modes of entry for manufacturing companies to consider as they move toward expanding into Mexico: subcontracting, joint ventures & ..read more

In Episode 1 of Tetakawi's Manufacturing in Mexico Podcast, David McQueen and Ricardo Rascon discuss five reasons companies should consider manufacturing in Mexico. They touch on workforce characteristics, logistics, trade barriers, market access, and operating cost. On top of everything else companies have to worry about in terms of tariffs and geopolitical risks, they now have to consider pandemics as a threat to supply chains. Based on the interactions had by the team at Tetakawi, many companies seem to be putting Mexico at the forefront of their strategies. First, David identifies five cri ..read more

In this episode, host Ricardo Rascon and David McQueen build on their previous conversation. After focusing in the last episode on manpower costs in Mexico, Ricardo and David shift their attention today to discussing real estate and building costs in Mexico. To begin, David clarifies that foreign individuals and corporations can acquire and lease property or buildings just the same as Mexican nationals can. In some markets, however, commercial properties are closely held, and owners often favor leasing income over selling new real estate. The most common scenario for industrial manufacturing i ..read more