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How Does Contract Manufacturing Work? Solutions in Mexico

How does contract manufacturing work? Where can I find the best solution for the needs of my company? When facing these questions, you need to know that Mexico is the place where your manufacturing needs will be met. If you want to learn more about the solutions provided by this country, keep reading.

Contract Manufacturing

how-does-contract-manufacturing-work-solutions-in-mexicoContract Manufacturing is a form of outsourcing; the company that needs the solution (Company A) hires the services of another company in Mexico (Company B) to carry out a specific process with advanced technology, to manufacture components, or to fabricate the whole product.

It is also called subcontracting, and Mexico is a great place to find great Contract Manufacturing solutions. But when looking for the best opportunities, we can say that Tijuana, Baja California, offers CM services with no comparison. Let us talk about the process of subcontracting in this city.

Manufacturing in Tijuana

If you choose Tijuana for your industrial needs, you will learn that there are over 100 successful companies here. Foreign investors have met their expectations with the companies in Tijuana that provide electronics, plastic, assembly, sewing, metal finishing and more solutions.

Generally, there are two ways in which CM works, and they are the following:

  • Partial Production
    In partial production, Company A contacts Company B to get certain components or pieces that they need for the completion of their finished goods. While Company A could manufacture these products, it does so because subcontracting represents two main benefits (among others): it reduces the cost of manufacturing these components, and it leaves that part to a specialized company, which must have proper equipment and knowledge to fabricate them.
  • Full Production
    In full production, Company B fabricates finished goods under the name of Company A. The specifications and quality standards are usually set by the contractor, and the Contract Manufacturer meets these requirements while providing beautifully manufactured goods. This represents an even lower cost for Company A.

Contract Manufacturing in Tijuana, Mexico, is a good opportunity to get quality, quick deliveries and low costs. If you want to get these long-term benefits for your company, contact us. We will give you all the necessary information to know if manufacturing in Tijuana is the best option for you.