Why Manufacturing in Mexico Is Good for Your IoT Startup

By on April 3, 2020

More hardware startups are entering the market than ever before. Better design tools, rapid prototyping, and access to manufacturing lines make entering the hardware landscape easier even for new companies. There are still challenges to overcome, but a bit of planning and the right set of resources can help you overcome those challenges.

Many startups are now manufacturing their IoT devices with the help of third-party manufacturing companies. Mexico is usually the go-to country for new startups seeking to establish a manufacturing line or leverage existing ones, and there are some very good reasons why you too should look into Mexico as an option.

Established Manufacturing Lines

Mexico is famous for manufacturing lines that are capable of producing high-tech devices. Finding a manufacturing line capable of assembling your IoT devices for you is a walk in the park; you don’t even have to leave the comfort of your office to start the search.

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Make sure you work with established manufacturing lines with sufficient experience in handling the production of gadgets and IoT devices. You also have the option to leverage the manufacturing companies’ supply chains for sourcing materials.

Business-Friendly Regulations

Another aspect that makes Mexico very appealing to new startups is the set of regulations governing businesses in the country. There are a lot of ways to save on labor, taxes, and other cost elements when you manufacture your IoT devices in Mexico.

Even establishing an operation in the country is easy. You have one-stop services ready to help you set up a business entity in the country. Once the business entity is established, you gain more benefits such as access to the maquiladora system.

Easy Import and Export

Next, we have the fact that importing and exporting goods are equally easy when your manufacturing line is based in Mexico. You can still order parts from around the globe and have them shipped to a factory in Mexico for assembly.

Import/export in Mexico is made easier by the maquiladora system, now known as the IMMEX program. The program basically lets you import materials without paying taxes or duty as long as all finished goods are exported out of Mexico.

Close Proximity to the US

Of course, we cannot talk about the reasons to manufacture in Mexico without talking about its close proximity to the United States. Aside from having its own hub, Mexico’s strategic location also makes producing devices for the US market easier and less costly at the same time.

Yes, there are extra costs to take into account when moving goods from Mexico to the United States, but the costs like tariffs are still relatively low compared to importing goods from other parts of the world. You can get the price of your IoT devices lower and be more competitive.

At the end of the day, that’s the biggest reason of them all. By manufacturing your IoT devices in Mexico, you can be more competitive. This means manufacturing in Mexico increases your chances of succeeding with your new hardware startup. That’s the kind of advantage you don’t want to miss.

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Why Manufacturing in Mexico Is Good for Your IoT Startup