NAPS Clients Experience Growth in Manufacturing Operations

Companies manufacturing in Mexico with administrative support from NAPS experience significant growth 

Over the past 18 months, one quarter of the companies manufacturing in Mexico with administrative support from NAPS experienced significant growth. These companies more than doubled the square footage of industrial warehouse space leased in Tijuana and Ciudad Juarez. NAPS clients added close to 400,000 square feet of space to their manufacturing operations during this time.

The NAPS client companies that experienced growth have headquarters in the U.S. and Japan. Among them are companies that manufacture or re-manufacture components for electronics, automotive, aerospace, metal-mechanics, medical device and the consumable goods industries.

Factors that have contributed to recent growth in the Mexican manufacturing industry include the increasing stability that has returned to Tijuana and Baja California over the past 3 years. Companies located close to the US-Mexico border region are also seeing increased demands for their products as the US economy emerges from the economic downturn.

Mexico has become an increasingly attractive location for companies searching for a low-cost manufacturing location to expand or add redundancy to their operations. In the wake of recent natural disasters such as the Japanese earthquake and Tsunami, global companies are recognizing the need to diversify their manufacturing platforms to meet JIT production goals. Logistics and rising fuel costs increasingly play a role in determining manufacturing location.

The Mexican peso remains relatively stable against the dollar. It is possible to estimate and hold relatively constant the cost of manufacturing in Mexico. Manufacturing in countries such as Japan has become prohibitive due to the strength of the yen against the dollar. Japan is investing in manufacturing operations in Mexico to serve the North American as well as the Latin American market.

For the past 20 years, NAPS has worked closely with clients to meet their growth needs. Whether it be locating, negotiating and expanding into larger industrial space; recruiting and managing qualified personnel on a short-term basis; or sourcing materials that qualify for NAFTA, NAPS is committed to helping client companies achieve sustainable growth and profitability.

Monica Hanono
Industry Liaison & Marketing Analyst
monica.hanono@napsmexico.com
phone: 858-794-7947
toll free: 800-551-8581

About NAPS
NAPS is a premier shelter company in Mexico providing start-up and ongoing administration for companies manufacturing in Mexico.  NAPS facilitates the relocation and expansion of labor intensive processes mainly along the border region of Mexico.  Since 1991, NAPS has played a key role in ensuring the success of 70 Mexico manufacturing operations including:  Esterline, Intuitive Surgical, JAE, Monster Cable, Parker Hannifin, Speck Products, Toyota & Qualcomm.  For more info about NAPS and the shelter services in Mexico we offer please visit www.napsmexico.com

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