In recent years, many companies have been considering shifting their apparel production from the Far East to Mexico. This move brings its own set of challenges and opportunities. In this article, we will explore the difficulties and advantages of relocating production, as well as the critical points that brands should consider in terms of production changes such as fabrics, tech packs, and trims.
Difficulties of Moving Production
Logistical Challenges
One of the most significant challenges when moving production to a new location is logistics. Relocating to Mexico involves reorganizing supply chains, finding new suppliers, and adjusting to new transportation routes. This process can be time-consuming and costly, especially if there are delays or complications along the way.
Adjusting to New Labor Laws and Regulations
Another difficulty when moving production is complying with local labor laws and regulations. Mexico has its own set of rules and regulations, which may differ from those in the Far East. Companies need to adapt to these changes to ensure compliance and avoid legal issues, which can be a complex and time-consuming process.
Language and Cultural Barriers
Cultural and language differences can also pose challenges when moving production to a new country. Brands need to adapt to new ways of communication, management styles, and business practices to ensure smooth collaboration between teams and suppliers.
Advantages of Moving Production to Mexico
Proximity to the US Market
A significant advantage of moving production to Mexico is its proximity to the US market. This allows for faster and more efficient shipping of finished products, reducing lead times and improving inventory management.
Lower Transportation Costs
With shorter distances to the US market, transportation costs are generally lower than those associated with shipping from the Far East. This cost reduction can translate into higher profit margins for companies.
Strong Manufacturing Infrastructure
Mexico has a well-developed manufacturing sector, particularly in the textile and apparel industries. This infrastructure allows for efficient production processes and access to skilled labor, which can contribute to higher quality products and faster turnaround times.
Points to Consider in Terms of Production
Changing Fabrics
When moving production, brands must consider the availability of fabrics in the new location. Mexico might have different fabric options, which can impact the final product’s look, feel, and quality. Brands should work closely with suppliers to identify suitable alternatives and ensure that the end product meets their expectations.
Changing Trims
Similar to fabrics, trims may also need to be reconsidered when relocating production. Brands should evaluate the availability of trims in the new location
and work with suppliers to find suitable replacements if necessary. This process may involve researching local suppliers and testing new trims to ensure that they meet the brand’s standards and specifications.
Redoing Tech Packs
Tech packs are crucial for efficient production, as they provide detailed instructions for manufacturers. When moving production, brands must update their tech packs to reflect new materials, suppliers, and production processes. This can be a time-consuming process but is essential for ensuring product consistency and quality.
Sustainability and Environmental Regulations
Mexico may have different environmental regulations and sustainability standards compared to the Far East. Brands should familiarize themselves with these requirements and adapt their production processes accordingly to maintain an eco-friendly and socially responsible approach.
Currency Fluctuations
Currency fluctuations can impact the cost of production and overall profitability. Companies should carefully monitor exchange rates and consider strategies such as hedging to mitigate the risks associated with currency fluctuations.
Moving apparel production from the Far East to Mexico presents a unique set of challenges and opportunities for brands. While logistical challenges, adjusting to new labor laws, and language and cultural barriers can be daunting, the advantages of proximity to the US market, lower transportation costs, and strong manufacturing infrastructure in Mexico can outweigh these difficulties.
When considering this move, brands must carefully weigh the pros and cons and take into account the changes that will need to be made in terms of fabrics, tech packs, and trims and other factors. By thoroughly researching and preparing for these changes, companies can navigate the transition more smoothly and ultimately benefit from the advantages of producing in Mexico.
