The benefits of expanding to Mexico for manufacturers that choose to offshore are numerous, but the benefits to the consumers that purchase from them are frequently overlooked. Offshoring not only means more efficient and low-cost manufacturing for the company itself, but also results in more affordable products for the consumer at his or her point of purchase. The implications of this can be exponential, depending on the industry in question.
Take medical manufacturing, for example. According to HCL Healthcare Management, manufacturing medical devices in Mexico means that U.S. companies can divert research and funds to other medical projects, which in turn promotes both domestic and global medical advancement. While creating jobs outside of the US can indeed be a controversial topic for any company offshoring some of its production, it is a practice that encourages growth that consumers directly benefit from in the long term. These kinds of offshoring advantages allow companies nationwide to stay competitive, preserving and protecting many non-manufacturing related jobs here at home and promoting rapid technological advancement in almost every industry.
Manufacturing in Mexico means even more collaboration and efficiency
Offshoring is a cost-effective method when done in many countries globally, but the similar time zones and geographic proximity of the US and Mexico allows for even more synchronization and in-person meetings than an overseas pairing. Not only does nearshoring in this way mean quicker turnaround when it comes to implementing new ideas and executing business decisions, but because Mexico is so close, even more revenue is saved due to decreased transportation costs - resulting in greater consumer savings and industry advancement.
More efficient companies means increased job availability in the services industry
There is also an argument that the increased manufacturing jobs abroad have in turn created service-related jobs domestically. According to EBSCOhost, offshoring has reallocated such resources in a way that has increased business productivity, creating a greater demand for laborers in the services sector here in the U.S. These jobs require face-to-face interaction with consumers in industries such as leisure and education, both of which promote a higher quality of life.
When examining the long term cause and effects, offshoring can positively impact both the manufacturer and their consumers, resulting in an array of benefits that ranges from cheaper consumer goods to more advanced medical equipment.
The Offshore Group: You manufacture ... We do the rest