Moving your e-commerce brand production to Mexico offers numerous benefits, including USMCA tax exemptions, reduced shipping costs, shorter lead times, strong intellectual property protection and decreased vulnerability to trade wars. However, the ideal manufacturing model depends on your product complexity and production volumes:

If you’re making below 10k units/year: Manufacturing in Asia might still be advantageous.

If you’re making between 10k-100k units/year: For simple products like plastic injection molding, metal stamping, simple packaging boxes and assembly, moving your entire supply chain to Mexico is a great choice.

If you’re making between 100k-1M units/year: Utilize a shelter company in Mexico, this works for simple and intermediate complexity products and electronics.

If you’re making over 1M units/year: A Maquiladora setup is optimal and it will allow you to make very complex products.

Want to learn more about nearshoring your supply chain? Leave a comment.