Mexico Cable Assemblies

Jul 09 2013

Mexico Cable Assemblies

By: CMS Admin

For years China was the go-to country for manufacturers due to its cheap labor costs and advanced engineering. Recently, however, the rising cost of doing business in China has caused more and more manufacturers to switch from China to Mexico. According to a recent article in USA Today, “The Chinese currency, the yuan, has risen in value, making goods more expensive to export. Shipping costs have risen as well, making a move to Mexico even more attractive to companies whose primary markets are in the Western hemisphere.”

Tijuana is one example of a city that is helping to dispel Mexico’s reputation for being only a source of illegal immigration, poverty, and drug wars. A recent interview with San Diego Mayor Bob Filner states that while at one time the region was known for its abundance of illegal activity, it is now “considered one of the safest parts of the Mexican border, and the number of apprehensions of people crossing illegally is now a tiny fraction of what it was a decade ago.”

Mexico offers many benefits to United States manufacturers that China struggles to compete against. Mexico enables manufacturers to have a shorter and more efficient supply chain, a reduced level of risk and is an overall faster solution. Mexico’s geographical location alone is beneficial for manufacturers who require fast turn around times.

Earl Anthony Wayne, Ambassador of the United States to Mexico recently spoke about why U.S. companies are choosing Mexico, he states, “Thanks to Mexico’s trade agreements, the increasing labor costs in China, and the nimbleness afforded by cross-border design and assembly processes, U.S. companies are choosing Mexico over other markets for manufacturing and assembly. Especially for small and medium sized manufacturers, Mexico’s proximity allows “just-in-time” manufacturing – which allows them to produce smaller quantities, purchase only what they need to minimize warehousing costs, and thus innovate more – as they are able to change production processes or designs weekly. Automotive production has doubled in the past three years; Mexico is now the fourth largest automobile exporter in the world. Mexico is the number one producer of refrigerators and flat screen TVs in the world, the number one exporter of beer, and the number four provider of IT services.”

Tornik has multiple locations including a Mexico production facility, just minutes from the U.S. border, which serves as a seamless extension of its U.S. operations, capable of efficient, low cost, high volume, medium volume and medium mix product output.

EMS/Mexico provides a low-cost country solution with good transportation access. The 20,000 square foot pure production facility in Tijuana, Mexico was created to support a cost-effective approach to:

Medium-mix and medium- to high-volume cable and harness production.
Turnkey production ranging from electro-mechanical assemblies to complete box builds.