Get this – even China’s expanding to Mexico.

Located at a prime spot in Monterrey, Mexico is an 850-hectare (2100-acre) property called The Hofusan Industrial Park. It is where 11 Chinese companies have built manufacturing and storage facilities 6,000 miles away from their home country.

Yes, that’s right. There is a Chinese business district right smack in Mexico’s industrial capital. Large Chinese manufacturers such as Hisense (electronics), Kuka Home (furniture), and Hangzhou CZB (auto parts) are just a few of the park’s biggest tenants. Why are they there? Well – if you compare the 25% tariff for China shipments to the USA versus Mexico’s free trade privileges then the answer’s right under your nose. Chinese businesses are skirting around US tariffs by doing their business in Mexico. Genius, right? Follow the story here.

Didn’t we tell you? The word is spreading fast. We can almost see it now. Mexico as a major global manufacturing hub? It’s going to happen. We’re not saying Mexico’s on par with China now. But someday – maybe – soon. Only time can tell. One thing we know for sure – the benefits of sourcing in Mexico are just too attractive to ignore. Even businesses from the other side of the world seem to think so.

Perhaps you’re still on the fence about Mexico. We get it. Do you need more information? Got some concerns? Let’s talk about them. Today we’re going to pull up some facts and do some myth-busting about Mexico. Starting with:

FACT: Mexico is Closer to the USA

The most obvious. Mexico is a 1-2 hour plane ride away from the USA. Being so close brings about 100 points in the pro-Mexico scoreboard. It means easier logistics, more affordable shipping, and shorter lead times. Even working remotely is less stressful between neighboring countries. The time zone difference is friendlier. Remember when you had to wait late at night before you could call your China supplier? You won’t have to do that anymore.

MYTH: Mexico is Unsafe

It’s always one of our top FAQs – “Is it safe to travel/do business in Mexico?”. The answer to this question is also another question – i.e. is there any place on Earth that is 100% safe? That said, Mexico’s reputation as a crime-laden location may be an exaggeration. Think about it: businessmen from all over the world have been able to go in and out of Mexico unscathed. Our take? Use your common sense – stay in safe areas and practice caution in all your affairs.

FACT: Mexico Has Lower Cost of Labor

The labor cost in China has been steadily rising in the last few years. Mexico’s labor cost stays low (their minimum wage is at approx $8/day). Mexico also has a diverse and skilled workforce. Workers range from blue-collar factory and logistics personnel – to licensed professionals (engineers, scientists, and R&D specialists).

MYTH: Mexico Has Limited Resources

Honestly, we thought the same – until EvoLatam 2022. There were hundreds of manufacturers, service providers, sourcing agents, and other professionals present. There were raw materials, local products, unique commodities such as recyclable plastic, and many more. Everybody brought their a-game and showed the world for the very first time what Mexico has to offer. Mexico may not be as advanced as China but they are not as limited as we initially thought. They have an abundant supply of various commodities. In fact, here are 10 Mexican suppliers who caught our attention at EvoLatam 2022. 

FACT: Mexico is in The Early Stages of Ecommerce Sourcing

If you’re expecting a Mexican supplier to know all the ins and outs of the supply chain for eCommerce businesses then you’re in for a disappointment. Very few Mexican manufacturers have supplied for Amazon businesses – and even those who have experience must still be guided. We’ve said it before and we’ll say it again – Mexico is not like China. There is no Alibaba. You will have to do more legwork – but it’s worth it. Being physically present whilst in the early stages of building partnerships is an investment that will lead to more success.

MYTH: Mexico is Moving Too Slowly

Mexico is a late bloomer in eCommerce. That’s a fact. They may not even have seen the opportunities in eCommerce if not for the global pivot in the last two years. But – as we have seen now in recent news updates such as the one shared above – Mexico is catching up. Fast. And the world is not just watching. The whole world is actively involved in Mexico’s growth. With growing support from China, Vietnam, Taiwan, the USA, and more – Mexico’s sourcing industry is developing at record speed. It’s an exciting time for the global eCommerce community.

It’s Happening…

If you haven’t reserved your slot for The Mexico Trip and EvoLatam 2023 – this is your sign to do it now. Slots are filling up fast. We’re only about 3 months away from the two massive events that could open the gateway to your business’s growth.

Mexico is happening. We know it. The rest of the world knows it. Do you? There’s no time to hesitate. Sign up for The Mexico Trip now.