ALTEX is headquartered in Indiana with a manufacturing facility in Nogales, Mexico.
For decades, China has been a magnet for manufacturing due to its inexpensive labor. Recently, reshoring, or moving manufacturing operations back from China to North America, has become a growing trend that is changing the global manufacturing landscape.
AlixPartners Manufacturing-Sourcing Outlook recently surveyed manufacturing executives from across more than 10 industries, half of which had annual revenue of $1 billion. The survey found that nearly half of respondents see reshoring as an opportunity to serve U.S. demand requirements. Fifty-seven percent of respondents plan to reshore within the next one to three years.
Manufacturers are taking notice that Latin America’s time zone and proximity to the U.S. offer business opportunities such as lower freight costs, greater speed-to-market, tighter quality controls and an overall increase in ease of doing business. According to Hal Sirkin, senior partner at Boston Consulting Group, Mexico in particular is emerging as a global manufacturing destination.
“We are seeing Mexico become a very important manufacturing hub,” said Sirkin. “Low-cost labor in Mexico helps lower the costs of final products and allows the U.S. to be more competitive with China.”
A variety of factors beyond low labor costs are enticing companies to pull operations out of China to move closer to home, such as transportation, quality issues and even patriotism.
“Here’s an interesting fact: Mexican-made goods have four times more American content than Chinese-made goods. So when you start making goods in Mexico, your products have significantly more U.S. content,” said Sirkin.
Manufacturing in closer proximity not only saves companies time and money, but also decreases lead times and enhances flexibility and innovation. With facilities located in both Indiana and Mexico, ALTEX supports contract manufacturing representatives in 14 states, making face-to-face meetings easier and ensuring timely customer service is a priority. ALTEX is a perfectly positioned manufacturing partner that provides customers with cost-effective, efficient and high quality customized manufacturing solutions.
View Sirkin’s entire interview on here.