Why Mexico is the Best Location to Reduce Costs


Whether you are considering a Low Cost Region (LCR) for the first time or reshoring from overseas, Mexico is an option you can’t afford to miss. If you think your product isn’t a good fit for outsourcing to Mexico, think again. No matter what the volume or level of complexity might be, there is likely a solution for you. For added flexibility, check out our US-Mexico Hybrid Approach.

3 Reasons Mexico is Perfect for Outsourcing Electrical Assemblies:

  1. Close to Home – Landed costs can be significantly less than Asia without the hassle of shipping across 6,600 miles of ocean. Faster delivery means less logistical risk and less capital tied up on product during shipping.
  2. Qualified Labor at Lower Costs – The highly skilled workforce in Hermosillo is exceptional, while costing up to 90% less than US labor costs and 20% less than China.
  3. USMCA Trade Agreement – The renegotiated “NAFTA” ensures no risk of tariffs, or other regulatory hurdles. Plus, we take care of importing for you.

Solutions for Every Volume and Complexity

We have solutions for virtually any volume and level of complexity. We manufacture products ranging from 10 units per year up to more than 10,000 units per year with infrastructure to support a high variability in demand.

If you think your product is too complex or too low volume to outsource to Mexico, let’s have a discussion. You will be pleasantly surprised by the cost savings and level of quality our solutions provide.

How Federal Provides the Best Experience

  • Transition Experts – We’ve successfully transitioned thousands of unique parts from all over the world to Mexico for virtually every industry.
  • Quality is Priority – We understand quality issues can offset labor savings. That’s why it’s our top priority in creating value for our customers.
  • US-based Customer Service – Our US-based Customer Service and Program Management teams work directly with you to ensure excellent communication, and on time delivery.
  • Maximum Flexibility – Our advanced ERP/MRP system and multishift production allow for rapid responses to real time changes in demand.
  • Automation & Test – Federal Electronics is continuously reducing costs by investing in automated processes.
  • Socially Responsible – We abide by the Responsible Business Alliance’s code of conduct. Rest assured that the wellness of all employees is of utmost importance.

As a US company with over 75 years of experience, we understand the importance of quality and a great customer experience. That’s why we provide flexible solutions that utilize the best of what our facilities in both the US and Mexico have to offer.

Sonora, MX

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