In recent years the world of manufacturing has gone through many changes. Prior to 2020, rising labor costs and delivery costs were causing manufacturing to leave China in favor of Mexico. During COVID, this situation was intensified by exposing supply chain issues and even higher costs of delivery. Therefore, once again, Mexico was and is the answer.
Additionally, with the move of manufacturing to Mexico, the U.S. became a natural fit to run operations. The U.S. now has a favorable tax rate and incentives for corporations. The U.S. also has a very easy business climate for forming and governing business entities. All of this, with proximity to Mexico, a favorable location for management to live, and the ability of the Mexican manufacturing to take advantage of incentives for importing finished goods into the U.S.
For these reasons, the interplay between manufacturing in Mexico and running operations through the U.S. has become a favorable trend for manufacturing businesses looking to leave China.
