The Role of Maquiladoras in the International Supply Chain

Companies considering reshoring to Mexico really should realize that Mexico isn’t the same thing as China.

Production can be completely outsourced to China. However, companies that contract with maquiladoras must provide their own management and secure their own supply chains. Chinese view gaps in the supply chain as an opportunity to profitably solve a problem while Mexicans view such a situation as an unacceptable risk.

Listen to this unique and timely podcast to learn about the following:

• Why are there two minimum wages in Mexico? Which one applies to your business?
• What services do maquiladoras offer? Which services don’t they provide?
• How does the quality of the labor force found in maquiladoras compare to a Chinese workforce?
• How do negotiating practices differ with Mexicans and Chinese in terms of pie-expanding efforts, acceptance of ambiguity, creativity and decisiveness?
• What law governs dispute resolution in the maquiladoras?
• What is the quality of the infrastructure between the maquiladoras and the U.S.-Mexico border?
• Are companies that manufacture in maquiladoras expected to furnish living accommodations to their employees?

Andrew Hupert lives and works in Mexico where he helps international businesses get their supply chains under control. After over 20 years in Asia (Shanghai, Taipei, Hong Kong, Saigon), Andrew decided to follow his own advice and move his operations closer to home. He is now based in Saltillo, Coahuila, the ‘Detroit of Mexico’, where he shows companies how to expand or adjust their supply chains.