Why you need Maquiladora experts in Tijuana

 

Maquiladoras are foreign-owned, operated, or subcontracted factory activities in Mexico that process or assemble temporarily duty-free imported components for export under preferential tariff and fiscal treatment. Although they started out as assembly processes, several of them are now involved in the more capital and skill-intensive manufacture of electronics and automotive components. They are a broad and heterogeneous group of plant activities, technologically divided both within and between industries. In this post, we will discuss why you need Maquiladora experts in Tijuana. 

4 Vital Benefits of a Maquiladora

There are a number of benefits that come with having Maquiladora experts in Tijuana. We've listed some of the most common ones below. 

1. Economic Benefits

The first and most apparent benefit is the economic gain that comes with having Maquiladora experts in Tijuana or Mexico, as well as any border communities or states where they may be placed. Once these industries are up and running, they will provide a source of employment for locals as well as helps to enhance the local economy.  

Maquiladoras are an efficient way for Mexico's border communities to become more industrialized, even though they are still plagued by high unemployment. The administrative facilities that are put up on the US side, as well as the transportation and customs services that come from import-export activities, help the economies of border cities and states. 

2. Best Location

Maquiladora experts in Tijuana can be found almost any place in Mexico, with a few limitations. However, from a logistical aspect, establishing a presence at the Mexican-US border makes more sense. Many maquiladoras are also conveniently positioned near airports, highways, trains, and port facilities.

Proximity aids in cost reduction, including transportation costs, as well as supply chain management. Instead of establishing a shop in Detroit and Matamoros, a corporation can choose to situate the parent company in San Diego and the factory in Tijuana. 

3. Access to Labor Market

Border towns are notorious for having high unemployment rates and people actively seeking jobs. Companies can have access to a larger and cheaper labor pool by having Maquiladora experts in Tijuana or in any Mexican town. Despite the fact that majority of the individuals looking for job are unskilled, it provides employees the opportunity to advance to the skilled group. 

4. Incentives and Costs

Having Maquiladora experts in Tijuana allows businesses to take advantage of cheaper costs and tax advantages. Mexico's labor expenses are relatively low, making production more affordable. This is due to the fact that there is a larger labor pool that might be seeking for job.

Maquiladora experts in Tijuana also assist businesses in reducing the expenses of tariffs and levies. Companies, for example, are free from the 16% value-added tax (VAT) on raw materials used in manufacturing.

 Conclusion

Maquiladora experts in Tijuana tend to help border cities and state the most. The establishment of factories and facilities, as well as an increase in labor and employment, help those in Mexico. Companies in the United States can profit from lower labor costs, lower manufacturing expenses, and lower import-export customs and charges.