How Do Maquiladoras Benefit US Companies? The Investor Guide


How do maquiladoras benefit US companies? That is a good question. If you are an investor interested in knowing the many benefits that maquiladoras can give to your company, this is the right place. At Tijuana EDC we have been dedicated to the industrial and economic development of the region for over 30 years, and we are experts in the maquiladora subject. Let us tell you more about this.

Maquiladora Regulations

how-do-maquiladoras-benefit-us-companies-the-investor-guideMaquiladoras are manufacturing plants in Mexico that process raw materials to turn them into products. They are commonly owned (in part or fully) by a foreign company that is usually from the United States, and they work, to a certain degree, under the owner’s regulations, specifications and structure.

Maquiladoras are also regulated by the IMMEX program, which determines that a company can work under tariff-free or duty-free conditions when they process temporarily imported materials, turning them into finished goods and exporting them to the country of origin.

This is one of the key factors that differentiate maquiladoras from other factories around the world. The exemption of certain taxes and duties significantly reduces the costs of production for US companies, making it easier for them to recover from an investment and keep working to get better manufacturing results.

Tijuana’s Workforce

Another key factor that benefits US companies is the workforce. In Tijuana, for example, the labor is very valuable; engineers, operators, managers, and many other workers of a maquiladora have the proper knowledge, abilities and qualities and they give and added value to the company, and they also create the perfect environment to provide excellent results in manufactured goods.

In addition, if we compare the salary of Mexican workers and US workers, we can see that foreign companies get a low-cost opportunity without sacrificing the quality of the production.

If to the Tijuana example we add it the great location, connection to ports and airports, industrial space available for foreign companies, joint cooperation with the local and federal government as well as with the CaliBaja region, it becomes the perfect destiny for US companies.

If you want to get more information about the benefits your company could get in Mexico, do not hesitate to contact us. We provide free of charge services and the best business advice available.