Building Boats in Mexico

Discussion in 'Boat Design' started by noli, Jul 24, 2012.

  1. noli
    Joined: Jul 2012
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    Location: New York

    noli Junior Member

    .

    Has anyone ever ventured or did a research on pros & cons for building boats commercially in Mexico?

    What am I up against?

    what are the Tarifs, lesser labor costs, etc.



    Thanks.



    .
     
  2. philSweet
    Joined: May 2008
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    Location: Beaufort, SC and H'ville, NC

    philSweet Senior Member

    Compared to where?
     
  3. viking north
    Joined: Dec 2010
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    Location: Newfoundland & Nova Scotia

    viking north VINLAND

    Good Question-- but I assume his comparison is to the U.S. What seems like an easy answer here is not necessarily so. Here are a couple of comparisons as I see them from an outsiders point of view.

    Possible Advantages in favour of Mexico:

    (1)Less startup costs in terms of property purchase and building construction mainly due to more relaxed zoning and building code regulations
    (2)Lower labour costs once the employees have been trained
    (3)Less enviorimental regulations initally but expect that to change with the added possibility of any related cleanup costs after the fact.
    (3) Less property and buisness tax.

    Possible disadvantages of manufacturing in Mexico
    (1) Unstable
    (2) Availability of skilled labour in sufficient numbers
    (3) Higher transport costs of raw materials
    (4) An almost non existant in country market compounded with extra miles of transport costs to get the product to market.
    (5) Extra red tape in U.S. certification of the product and a good chance of a percentage of the product being damaged as a result of border and homeland security inspections.
    These are just a few that pop into my head and Note! I used the word "possible" in my evaluation.
     
    Last edited: Jul 24, 2012
  4. Lendar
    Joined: Jul 2012
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    Location: Croatia

    Lendar New Member

    You will pay the workers much lower than in USA, but it is very difficulz to sell a bout in Mexico and anywere in South America, but I dont know can it be sold in USA.
     

  5. Tad
    Joined: Mar 2002
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    Location: Flattop Islands

    Tad Boat Designer

    20 years ago Ericson Yachts relocated some production from California south of the border. Into a "special development zone" of some sort.......The advantage did not ensure the company's survival.......
     
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