Time to market: Mexico is adjacent to the largest consumer market in the world - the United States. This becomes a key consideration of the supply chain where companies manufacturing in Mexico don't need as much lead time for the product to reach the market.

Customization: We live in an internet world where consumers want to buy products, customize them to their needs (color, capacity, etc.) and have them delivered within days and not weeks. Manufacturing in the Mexico border allows a company to receive an order, manufacture it, and ship it within 48 hours.

Supply chain and logistics cost: Most companies have to change their whole supply chain structure when they outsource or offshore their processes or products. This structure involves supplier development in other countries and it is more costly to travel overseas to visit the new suppliers. With gas prices going up, logistics costs could also be higher from overseas, depending on the type and physical size of product. Centrally located in the U.S., McAllen, Texas makes an ideal distribution location.

Labor Costs: Wages in Mexico are about $3 an hour, and in McAllen, Texas, one of the lowest cost of living cities in the United States, the entry level manufacturing wage is about $8 an hour, ranking significantly lower than the $30 fully loaded in the US.

Management: Companies need skilled, knowledgeable managers running their factories. This is more of a concern in China than in Mexico. By locating in the U.S. Mexico border, managers and their families can live in the United States while the manager works in Mexico and crosses each day. In the Reynosa/McAllen area, we have over 5,000 managers, engineers, and other support staff that live in the U.S. and travel to Mexico for work everyday.