Mexico is one of the largest exporters of appliances in the world, with many well-known household appliance brands choosing it as their manufacturing location. The appliance manufacturing industry in Mexico is celebrated for its proximity to key export markets, strong supply chain, and extensive manufacturing capabilities. By partnering with a manufacturer licensed to operate in Mexico, businesses can enjoy the benefits of highly efficient, lower-cost manufacturing without sacrificing quality or having to set up their own operation.
Household Appliance Manufacturing Industry
The household appliance manufacturing industry is very competitive. The household appliance global market is expected to reach 1.8 billion units by 2024, according to First Research. This large number is fueled by factors such as high replacement demands, innovations in technology, and a growing middle class.
In this competitive landscape, a company’s profitability depends largely on the efficiency of its operations. For this reason, more leading household appliance brands have begun turning to Mexico over the past several decades for profitable manufacturing solutions performed by a highly skilled workforce.
The Home Appliance Market in Mexico
The Mexican home appliance manufacturing industry is thriving. As consumers have increasingly sought appliances that make their daily lives easier, Mexico has emerged as a global leader in the home appliance market. The growth rate of companies moving their manufacturing operations to Mexico has propelled the country to become the second-largest exporter of household appliances to the United States. The country’s portfolio includes top brands such as General Electric, Whirlpool, LG, and Electrolux.
Why Manufacture in Mexico
There are several reasons why the most well-known appliance companies are choosing to manufacture their products in Mexico. Lower-cost, yet highly skilled labor allows companies to save on production costs while ensuring they receive expertly crafted products. For U.S. original equipment manufacturers, moving production operations from China to Mexico resulted in a 23% reduction in operating costs, according to a study from PwC.
There are significant benefits associated with nearshoring to Mexico for U.S. companies. Mexico offers proximity that allows for suppliers to better meet delivery deadlines, decrease lead times, and share time zones. In such a competitive market, Mexican manufacturing facilities present companies with valuable assets such as greater cost savings and enhanced efficiency.
Transfer Your Appliance Manufacturing to Mexico with IAI
The simplest way to begin operating your appliance manufacturing in Mexico is to partner with a trusted manufacturer like IAI. As an experienced management partner, we deliver all the benefits associated with manufacturing in Mexico, without the hassle of establishing a fully owned operation. Our services provide low-cost entry into Mexican manufacturing and easy access to Mexico’s highly skilled and cost-effective labor market.
Companies who partner with us get all the benefits of the free trade agreements between the U.S. and Mexico without the responsibility of labor, duties, and compliance with local labor and environmental protection laws. We manufacture products in an ISO environment to ensure the best quality. IAI also handles every element of customs and logistics, so you don’t have to.
IAI has nearly 30 years of experience as a provider and contract assembler in Mexico. Our customers simply send their equipment to our Harlingen, Texas facility, and then we handle the rest. We import all necessary materials into Mexico and export the finished product back to a U.S. facility.
Contact Our Experts to Start Your Manufacturing Operation in Mexico
Mexico has a thriving appliance manufacturing industry that delivers significant cost savings to U.S. companies. Getting your manufacturing operation started is simple when you partner with IAI. We develop flexible plans that meet the individualized needs of each client and provide simplified access to the Mexican manufacturing sector.