Home / Knowledge / News / Textiles / MFI offers low-cost Mexican textile production base
MFI offers low-cost Mexican textile production base
25
Jul '13
Mexico's increasing competitiveness is expected to be a boon to those companies, including American companies that design the original product and their contract manufacturers – the companies that manufacture the American companies’ products in Mexico.

Contract manufacturers like MFI International are expanding their production facilities because so many American companies are taking advantage of Mexico’s superior manufacturing services.

MFI currently manufactures consumer products, electronics, furniture, mattress soft goods (mattress covers), medical devices, and equipment for the military and first responders, pet products, specialty apparel and specialty seating. Its new clients will allow it to manufacture casket products for the U.S. market at its plant in Mexico.

"Our clients typically experience cost savings equivalent to $1 million per year per every 50 employees when they move their operation from the U.S. to Mexico," said Fatih Akben, MFI's Director of New Business Development. The study by The Boston Consulting Group (BCG) projects that “global companies are expected to continue moving production to Mexico” because its average manufacturing costs are declining in comparison to other nations.

In 2000, Mexican labor costs were 58 percent higher than China’s labor costs, but they are projected to be 19 percent lower by 2015. Overall manufacturing costs in Mexico in 2015 are projected to be 6 percent lower than in China and 20 to 30 percent lower than Belgium, Germany, Italy and Japan. The lower manufacturing costs – and lower energy costs – “are expected to propel Mexican manufacturing exports” by $20 billion to $60 billion annually within five years, according to BCG’s June 28 press release.

American companies that hire contract manufacturers like MFI to manufacture many of their products’ components in Mexico are expected to benefit tremendously from this export boom, MFI can help companies bring their products to market expeditiously and inexpensively thanks to Mexico's high-quality labor force and the manufacturing plant's proximity to the U.S.

“Mexico is in a strong position to be a significant winner from shifts in the global economy,” BCG senior partner Harold L. Sirkin said. “That is good news not only for Mexico, which relies on exports for around one-third of its GDP. It’s also good for America, since products made in Mexico contain four times as many U.S.-made parts, on average, as those made in China.”

Mexico also has more free-trade agreements than any other nation - 44. That reduces companies' tariffs.

About MFI International

For over 30 years, MFI International has developed itself into a leading provider of cost-efficient and flexible manufacturing services in the Juarez, Mexico region. With a truly bi-cultural management staff that has extensive experience in both US and Mexican operations in a wide variety of manufacturing sectors, MFI offers complete package solutions through its two divisions, contract assembly and shelter manufacturing support ("shelter services"), across a wide variety of industries including the Medical, Casket, Consumer Electronics, and Home Furnishing and Automotive industries.

MFI International


Must ReadView All

Courtesy: American & Efird

Textiles | On 20th May 2018

A&E introduces Repel

American & Efird (A&E), a global leader in industrial sewing thread...

Archroma working with House of Denim Foundation

Textiles | On 20th May 2018

Archroma working with House of Denim Foundation

Archroma, a leader in colour and specialty chemicals, has joined...

Courtesy: Amazon

Textiles | On 20th May 2018

Amazon opening first fulfillment centre in Tucson

Amazon.com is opening its first fulfillment centre in Tucson, which...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search