Product Packaging In Mexico
Product Packaging Services In Mexico
Over the past decade, many U.S. based electronics and consumer product manufacturers shifted production to Asia to benefit from low cost labor. As wages continue to rise in China, companies are taking a closer look at how to improve their bottom line, and supply chain strategies are playing a bigger role in ensuring a company’s profitability. According to a 2010 study on air shipping from China, the shipping cost from China of a 40-foot (or 12-meter) container to the United States rose to $8,000, compared with $3,000 early in the decade. While shipping costs have reduced since then, a significant savings can be realized by packaging products in Mexico vs. China.
NAPS offers companies that import products to the United States an innovative solution to control freight costs from China. NAPS acts as your partner in Mexico to establish a product packaging operation in as little as four to six weeks. The manufacturer sends components in bulk from Asia; components go into Mexico duty-free; and the product is packaged in Mexico and returned to a warehouse in the U.S. or shipped directly to the end user. With the current trends in product packaging companies, Mexico offers many growing benefits and options to improve profitability with improved packaging costs.
Monster Cable, a leader in the U.S. audio cable market, has manufactured cables in Asian factories for many years. Cables were packaged in Asia and shipped to their company headquarters in Northern California for distribution throughout the U.S. In 2006, Monster put in place an initiative to improve their bottom line, while retaining the quality of their products. The packaging operation that Monster Cable established in Mexico has resulted in cost savings of 60%, while giving the company added flexibility to adapt to market conditions and customize delivery of their products. (Read full case study)
NAPS’ full-service Administration and Compliance Management Program enables its clients to focus on the production and/or packaging portion of their operation without concern for government compliance, HR, accounting in Mexico, Import/export and environmental health & safety.
Contact us or call us at 800-551-8581 for a more detailed analysis of your proposed expansion to Mexico and learn how NAPS can help facilitate the entire process including establishing your Mexico packaging operation.