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Manufacturing in Mexico Just Got a Little Easier

Posted By Jeff Moad, May 17, 2011 at 2:54 PM, in Category: Global Value Networks

Interest in manufacturing in Mexico--sometimes called near-sourcing--seems to be gaining steam, at least if attendance at a session on the subject at Plex Online's annual customer conference is any indication. That shouldn't come as a surprise. Under Mexico's IMMEX program, manufacturers shifting production to Mexico can sidestep that country's 30% corporate income tax, its 16% VAT, and its 10% employee profit-sharing requirement. The trade-off has been tons of paperwork. Mexican authorities required paper invoices that had to be written on special forms produced by government-approved printers, according to Scott Sneckenberger, a consultant at Plante & Moran. Now, however, Mexico is doing away with the paper invoices. As of January 1, manufacturers can use electronic invoices as long as they use invoice numbers issued by the government.

This should further streamline processes and further increase interest in Mexico as a production location, says Sneckenberger.

What's been your experience manufacturing in Mexico. Has invoice paperwork been a headache? What other concerns should manufacturers be aware of before stepping stepping south of the border?

Written by Jeff Moad

Jeff Moad is Research Director and Executive Editor with the Manufacturing Leadership Community. He also directs the Manufacturing Leadership Awards Program. Follow our LinkedIn Groups: Manufacturing Leadership Council and Manufacturing Leadership Summit


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