Abundant Labor Pool for Manufacturing in Mexico
Education Initiatives Boost Workforce and Opportunities for Companies Manufacturing in Mexico.
Although some manufacturing companies might shed a little concern about the skill level in Mexico’s workers, Mexico graduates more engineering students than the US, Germany, Brazil and Canada. Currently, Mexico graduates about 90,000 engineers and technicians per year. Increased government aid to education programs means that companies who manufacture in Mexico are now working with a highly qualified, skilled and trainable work force.
Mexico has served as a low-cost manufacturing destination for multinational companies, tier 1 and tier 2 suppliers. For instance, many global auto manufacturers hoping to take advantage of the large North American consumer established Mexico manufacturing plants to keep costs low. Felipe Calderón, Mexico’s former President, traveled to Hermosillo back in March to announce Ford’s $1.3 billion investment in the plant. As noted in the article “Mexico Auto Production Rates with World’s Best” published in the Arizona’s Daily Star on September 23rd, Calderón commented on how the labor has made an impact in the plant: “The Hermosillo workers are demonstrating once more that our country has talent, preparation and innovation to generate the best quality and at the level of the best in world.”
The Human Resources Department at North American Production Sharing (NAPS) has seen an increase in the caliber of the labor pool. NAPS offers a package of administrative support services to companies manufacturing in Mexico, which includes human resources and labor recruitment. NAPS has witnessed the rise in qualified engineers and technicians when recruiting for new and current clients. NAPS predicts that Mexico’s abundant labor pool is expected to increase. The significant improvement in university and technical-training programs have proved to boost manufacturing in Mexico and have added increased innovation resulting in better returns on foreign investments.
The education initiatives are specifically designed to make it more advantageous for companies interested in manufacturing in Mexico. For example, in 2009 the government-funded National Aeronautics University of Querétaro opened to teach engineering students techniques in composite materials and design that they would go on to use to build the Canadian firm Bombadier's LearJet. This $40 million subsidy also enabled training for technicians and other skilled workers who get the benefit of working at a factory right near the local airport.
Other initiatives include funding for independent research centers and professor exchange programs. Many universities are sending their skilled faculty overseas so that they can learn new techniques and add to their curriculum.
The overall result of Mexico’s education initiative is that these high-quality universities and job-training facilities have greatly helped make manufacturing in Mexico appeal to a variety of international manufacturers. Companies who want to manufacture in Mexico will have access to more educated and skilled workers who in turn can create higher quality products and still remain cost competitive compared to other outsourcing alternatives.
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With over 20 years of experience doing business in Mexico, NAPS can provide expert commentary on trends and changes in the industry. NAPS offers administrative support services for companies manufacturing in Mexico. Administrative services include: Site Selection, HR, Recruitment, Accounting, Payroll, Customs, Environmental and Corporate Compliance. For more information contact NAPS at 858.794-7947 or visit our website.