In today’s markets, organizations are considering Mexico to be a premier sourcing destination. This Latin American country boasts of having tons of rich natural and mineral resources. Marketers cannot question the agricultural aspects and mineral outputs of Mexico. In this world of perfectly competitive global markets, organizations are going for Mexico sourcing as the country has almost everything in store for the marketers. Nowadays, sourcing is a viable option available to businesses for implementing their strategies in the proper path.
Factors Contributing to Sourcing in Mexico
Thriving Economy:
When it comes to oil exports, there is hardly any country in the world that can surpass Mexico. According to research, about 30 percent of the country’s revenue comes from oil exports. The economic and political situation of Mexico is also favorable to the investors. Before taking a sourcing decision, marketers tend to look for a country where they can the best quality products and services at a cheaper rate. Apart from this, the Mexican government has laid down a set of economic reforms that are further ushering the sourcing scenario of Mexico.
Low Labor Costs:
The costs of labor are low in Mexico when compared to most other nations. Some time ago, China was the most preferred sourcing hub for marketers but due to the formulation of stringent guidelines by the Chinese government, organizations are resorting to Mexico for sourcing activities.
Entrepreneurial Economic Structure:
Entrepreneurial economy of Mexico is another favorable factor that are intriguing organizations of all sorts. The sourcing companies are looking to get the best of products and services and thereby, gaining an upper hand in the local markets. This will further enable them to lower the prices of products while piling profits. The level of competency among workers in Mexico is better than most other developing and underdeveloped countries, which is an added boost to the organizations for initiating their sourcing activities.
Sound Infrastructure:
Mexico has a good transportation system that reduces the supply time to a great extent. This is especially helpful in times of huge consumer demands, and when organizations face the difficulty of meeting up to the end user’s expectations. Marketers are opting Mexico sourcing activities as they can get required products and services within a short span of time.
What are the Main Products of Sourcing from Mexico?
This Latin American country produces petroleum in a bulk amount while exporting it to the developed nations like the U.S and U.K. Mexico is also a premium exporter of cotton, textiles, vegetables, fruits, and coffee. The developing countries of Asia like Israel and Turkey also import these products in a huge amount.
In the forthcoming days, sourcing activities are very likely to play a key role in organizational development. The sourcing companies are choosing Mexico for getting high-quality products and services at a low cost. The abundance of minerals and natural resources in Mexico is the other reason. If you are looking to source your key business functions, Mexico can be the viable choice.
