Mexico Companies and Imports

Suppliers to manufacture or supply US consumers can be obtained almost anywhere.  The favorite sources for suppliers are often China and India.  There is an inherent advantage in labor and material costs when outsourcing to China and India.   In recent years what some business have not noticed or not paid much attention to is the rise in fuel costs.  The rise in fuel costs is directly related to the cost of importing goods from other parts of the world.  China and India are by far much farther away than Mexico and the costs associated with transportation would be very high, such that any savings obtained on the labor and materials would be insignificant if at all.  In contract when product is imported from a Mexican supplier chances are that transportation costs would be minimal.  Many Mexican companies also keep warehouses or distribution centers around the bordering cities in the United States and therefore transportation could in theory be cheaper.  For example a delivery from Chula Vista to San Diego would clearly be cheaper than delivery from Long Beach to San Diego.  There are also other factors to take into account, when you order product A you do not expect to get product B.  On occassion you just may get product B from an Indian or Chinese supplier.  What if you want to actually inspect the product for yourself or tour the facilities ?  Would you really want to travel for 12-16 hours to inspect the product ?  From San Diego you can be in Mexico in under 1 hour.  The same is true from many border cities in Texas.  In reality Mexico is much like another sister state.  The biggest barrier being culture and communication, but the number of bilingual individuals in the US that speak Spanish and English is enormous and not a real drawback.  The culture is a little different, but not as radical as the Indian and Chinese cultures where little is shared in common.   When you cross into Mexico there are many common things and it is not unusual to run to English speaking communities where the language and culture is not much different from the United States.

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Mexico Companies
Author’s Yougler Profile is at  arnold.

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