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Appliance Manufacturing in Mexico

When it comes to companies being able to manufacture quality goods at a fraction of the cost, Mexico is continuing to establish itself as a major player for a number of industries. From the automotive to aerospace industries, many organizations have turned to the country as the base of its assembly and other factory related operations. The same holds true for consumer appliances.

Refrigerators, ranges, washers, dryers and other common appliances that consumers have throughout their homes - many of these items were manufactured in Mexico. In fact, these particular items that are assembled in the country account for more than half of the total retail value that comes from their sale in the consumer marketplace.

Gain a competitive manufacturing edge in Mexico

In Mexico, operational costs are much more affordable and resources are much more competitive than in other common offshoring countries, such as China. In addition, natural gas costs in Mexico are approximately 63 percent lower, and electricity is 4 percent less costly than in China. Given these facts, it’s easy to see why appliance manufacturers would ideally like to have their products assembled in Mexico.

Offshore Group Appliance Manufacturing in Mexico

This particular sector is expected to experience sizeable output gains in the near future. There is already an established and experienced skilled workforce operating in the sector, clusters of maquiladora operations that specialize in consumer appliance manufacturing and a logistical infrastructure that makes it easy to import parts into and finished goods out of the country.

By 2017, all of these inherent advantages could allow the sector to grow by as much as 19 percent, according to research conducted by The Boston Consulting Group. Major appliance brands looking to move some or all of their manufacturing operations to Mexico may find this move to be advantageous on multiple levels, including overall sales growth and the amount of revenue added to the bottom line.