We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Mexico seen as the best place for low-cost manufacturing
Forward Thinking

Mexico seen as the best place for low-cost manufacturing

June 23, 2010
Supply Chain Quarterly Staff
No Comments

A recent study by the research firm AlixPartners determined that Mexico was the most cost-competitive country for manufacturers in 2009. Mexico received the lowest-cost ranking because of its favorable exchange rate and the fact the country has not been significantly affected by transportation and material costs.

The AlixPartners "U.S. Manufacturing-Outsourcing Index" analyzed a variety of manufactured products and compared the cost to build those items in low-cost countries versus the cost of doing so in the United States. It tracked changes in seven key cost drivers (exchange rates, labor costs, transportation costs, raw-materials costs, inventory costs, capital equipment, and overhead costs and duties) and their combined impact on the total cost for a range of fabricated parts and products by country.

The author of the study, Stephen Maurer, noted that low labor costs were not the overriding factor in determining the optimal country for low-cost sourcing. Even in the United States, he noted, hourly labor usually accounts for only 20 percent of the total cost for a manufactured product. Other factors, such as energy costs, currency-conversion charges, and transportation costs can trump low labor costs in some countries.

The 10 most cost-competitive countries for manufacturing

  1. Mexico
  2. India
  3. Vietnam
  4. Russia
  5. Romania
  6. China
  7. South Korea
  8. United States
  9. Hungary
  10. Singapore
[Source: "U.S. Manufacturing-Outsourcing Index," AlixPartners, 2010]

    • Related Articles

      For U.S. companies, Mexico is best bet for low-cost manufacturing

      China no longer the place for low-cost sourcing

    Recent Articles by Supply Chain Quarterly Staff

    Cargo theft and fraud rose 41% in the first 20 weeks of 2023 over last year, CargoNet warns

    Gartner: Top supply chains of ’23 balance risk control, new growth channels

    OSHA, industrial safety experts to headline National Forklift Safety Day 2023

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing