Looking for Skilled Manufacturing Labor? Look to Mexico

Mexico is known for its industrial talent, graduating tens of thousands of engineers every year. However, manufacturing in Mexico requires a spectrum of roles ranging from entry-level to managerial.

Construction materials and modular housing construction companies, in particular, face favorable hiring opportunities, since it’s fairly common in Mexico to find talented workers with experience in roles like carpentry, plumbing, pipe installation, and drywall. Though talent for these roles may be plentiful, retention is challenging since most prefer to perform this type of work outside of their regular full-time jobs.

Because of this, U.S. and other foreign companies manufacturing in Mexico need to know what it takes to stay competitive. The goal is to allure skilled labor away from their current roles and keep job satisfaction high so they’ll develop loyalty to the company. To help hire and retain qualified workers with construction and other specific skill sets, working with a shelter company is beneficial.

As more foreign manufacturers are struggling to find skilled labor, Mexico is becoming a central part of the solution. Here are reasons why Mexico continues to be such a hotbed of talent, and what is required to attract the best.

Competitive Salaries

When recruiting industrial workers, the average pay range starts at $5.50/hour for unskilled labor to $7-$8/hour for electricians and those with more advanced capabilities. This reflects a fully burdened salary, which includes benefits in addition to compensation. When comparing labor rates in Mexico, keep in mind not all companies will automatically include benefits in the salary amount.

Conveniently Close to Market

The U.S. labor shortage has significantly affected the manufacturing industry. The U.S. Chamber of Commerce reports that even if every unemployed worker with manufacturing experience fulfilled the open job roles, the industry would only fill 44% of the vacant jobs. This job/worker imbalance is leaving companies uncertain where they’re going to source laborers for their manufacturing projects. With Mexico being so close to the U.S. market, it makes it a convenient choice when sourcing cost-effective, highly skilled talent.

Strong HR Leadership

Mexico also has the unique advantage of the shelter model so companies can minimize their risk and exposure navigating Mexico’s labor law. Typically, in smaller or medium-sized organizations, there is only one HR person for an entire company with many areas of expertise expected from just one individual. They are solely responsible for multiple tasks, such as hiring, interviews, data entry, employee resolutions, and/or legal compliance, to name a few.

Whereas, with the shelter model, there are multiple layers of help with a dedicated team to cover HR/tax expertise, labor law regulations, recruiting, payroll processing, etc. All departments work collaboratively to streamline the HR process. Therefore, it better helps companies scale effectively and save on costs.

The competitive labor rates in Mexico and the amount of industrial talent available are causing many foreign operators to shift their strategies. Since labor is one of the first costs companies consider when manufacturing in Mexico, it’s advantageous to speak with an experienced shelter provider like IVEMSA that can guide the process.

If you’re considering moving manufacturing to Mexico, let us help you analyze estimated costs for labor, site selection, and other operational expenses. We can help you get your operations up and running in half the time it takes as a standalone entity. Contact IVEMSA today.