The garment industry is well-developed in Mexico, and the country is also an important player in the international textile chain. Again, as a neighbor to both the United States and Canada, coupled with cheaper labor than its neighbors, Mexico has become a home to many brand manufacturers. The purpose of this blog is to look at the different types of manufacturing operations within the garment industry in Mexico and what makes each type special.
Mexico’s garment industry is an old one, developed several decades ago. NAFTA and USMCA, both phylogenetically and ontogenetically, played an important role in shaping and evolving the sector. These trade agreements have given better market access to the United States and Canada and enhanced exports and international direct investment.
Types of Manufacturing Processes in Mexico’s Garment Industry
1. Cut, Make, Trim (CMT) Manufacturing.
CMT manufacturing entails offering tailor cutting, sewing, and other related services to clients who contribute the fabric and designs. This model is adopted by comparatively small brands or companies that want to subcontract some production steps. Mexico has relatively low costs of CMT services because of low labor costs and high facility standards.
2. Full Package Manufacturing
Full package manufacturing means a service that involves fabric sourcing, product design, the manufacturing process, and even the shipping of the final product. This is perfect for the brand market that requires a one-stop solution and a hassle-free supply chain solution. The full package service is a special strength of Mexican manufacturers, who provide a large number of possibilities and options.
3. Original Equipment Manufacturing (OEM)
OEM is a process through which a company, under licenses and contracts, manufactures products of a brand owned by a different company. Mexico is a primary OEM supplier of garments, with many manufacturers that supply garments to famous global brands.
4. Original Design Manufacturing (ODM)
ODM implies the development of products for a client’s brand and the actual manufacturing of such products. The case of Mexican firms has shown that they possess good knowledge of the ODM, thus producing new fashionable clothes.
Regional Manufacturing Hubs in Mexico
1. Central Mexico
Mexican states close to Mexico City, such as Guanajuato, Querétaro, and Puebla, are part of the garment manufacturing zone. This zone has sufficient industrial development and optimum infrastructure facilities required for various garment production processes.
2. Northern Mexico
Northern Mexico’s access to the U.S. market makes it ideal for garment makers. Mexico states, including Nuevo León, Coahuila, and Chihuahua, have become dominant locations for the industry, brought about by efficient infrastructure and market access.
3. Southern Mexico
The south of Mexico, especially the states of Oaxaca and Chiapas, is very suitable for garment production. Although this region presents some difficulties, such as infrastructure development, there are alternatives to socially responsible production.
Pros of Production in Mexico
- Proximity to the U.S. and Canada: Speaking of the markets, it is important to mention that Mexico is localized in a relatively convenient area for access to other North American markets.
- Skilled Labor Force: Mexico has a good pool of human resources resources that have worked in garment manufacturing lines, thus good quality and workflow results.
- Lower Labor Costs: Mexico has relatively lower labor costs than the United States, which many branding companies look forward to.
- Robust Infrastructure: Mexico has a highly developed transportation infrastructure, which means the country provides a smooth ground for industrial production.
- Trade Agreements: NAFTA and USMCA have easy trade relations, and these aspects, coupled with free investment flow, promote garment exports in Mexico.
Challenges Facing Mexico’s Garment Industry
- Competition from Asian Countries: Mexico competes with countries such as China and Vietnam, which offer lower wages and have scale economies.
- Issues Related to Labor Practices: Adherence to labor standards and working conditions can be a problem for some of the manufacturers operating in Mexico.
- Environmental Concerns: The global challenges related to the ecological problem have grown significant in the apparel manufacturing industry.
Future Trends in Mexico’s Garment Manufacturing
- Adoption of Sustainable and Eco-Friendly Practices: There is increased concern about environmentally friendly fabrics, such as organic fabrics, fair trade fabrics, and others that significantly reduce environmental impacts.
- The Rise of Technology and Automation: Technological systems and applications are being implemented to increase productivity, decrease expenses, or increase product quality in garment manufacturing industries.
- Growing Demand for Nearshoring: Due to many disruptions caused by COVID-19, there has been a shift to nearshoring, where companies aim to transform their production lines to be nearer their home markets.
Conclusion
Mexico offers a variety of garment manufacturing services, ranging from basic cut, make,
and trim (CMT) to full-package and original design manufacturing (ODM). The country has
strong potential to play a key role in the textile supply chain.
If you’re interested in learning more about garment manufacturing in Mexico, there are
resources available to help you explore local manufacturers and production options.
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