Small Quantities Orders
Plenty of Maquiladoras
Operational and total market costs can be lower than China. The difference between a near shore outsourcing and manufacturing in Tijuana, Mexico and offshoring to China:
- At most, a few hour flight away
- Time difference from the US: From 0 to 3 hours
- Many Mexicans speak English, and Spanish is the most common foreign language taught in U.S. schools. Both languages share Latin roots
- It is possible to ship in pallet or box quantities allowing flexibility with customer LTL orders.
- Ocean freight is not required
- Shipping cost per unit is low and only slightly higher than shipping from the U.S.
- IModerate or no duties, in most cases
- Half way around the world
- Time differencefrom the US: 15 hours
- While China has many English speakers, the cultures have few common roots and the native languages are not grounded on the same root.
- Generally ship in container load quantities limiting flexibility
- Potential dock strikes
- Shipping cost per unit can be high, particularly for bulky items, and given the high demand for containers from Asia.
- Duties can be substantial depending on tariff code