The RESCO Electronics Blog

I am excited to share with you that last October RESCO moved into its new home in Ciudad Acuna, Mexico.   You may be thinking why wait six months before writing a blog about this new facility?  Well, the short answer is that we didn’t want to make a big to-do about our new place until the move was complete and most all the transition pains were behind us.  In other words, we didn’t want to be too quick to brag.  Now that the move is behind us and things are running smoothly, brag we will!  So here are some particulars about our new home, our staff and Acuna, Mexico.

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The Downfall

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Ever since Donald Trump’s unexpected win last November I have been inundated with questions about the future of NAFTA (North American Free Trade Agreement) and Mexico as a manufacturing supply source for the United States.  There is no doubt that the rhetoric used during the campaign and reiterated since the election is decidedly anti-NAFTA.  Trump has left no question about his feeling on NAFTA; famously stating that it was “the worst trade deal in history”.  All this being said, I think it premature to pen NAFTA’s obituary.

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Now that we are in the middle of a Presidential campaign the rhetoric is flying on a whole host of issues.  This election cycle the issues of trade, trade agreements, and American jobs have become some of the most hotly debated.   My intent in this blog is not to make a political statement but rather to offer a perspective regarding trade with Mexico that has been all but drowned out by the political fervor.   I want to share with you why I believe that our trade relationship with Mexico has actually helped preserve and perhaps even grow jobs in the US.  Although I will cite a few statistics and comments from experts below, my belief fundamentally comes from what we at RESCO see taking place at many of the US manufacturers that we support.

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In a blog posted last spring on this website titled "When Does Contract Manufacturing in Mexico Make Sense" Fred Morr provided a great review of the circumstances our experience has shown that selecting a contract manufacturer with production in Mexico is the most advantageous.  Fred compared and contrasted domestic contract manufacturing with production in Asia and Mexico.  He included a simple table which I am providing again below that is a great first pass reference tool.  If you haven’t had a chance to read this blog I encourage you to do so.

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A difficult task for any company is reviewing bids and proposals for cables, harnesses, or electromechanical assemblies and determining the best to select.  The final cost, while key, is not the only important factor to consider. This is particularly true when proposals come from companies that are offering to complete the work at an offshore manufacturing facility.

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When you start to look for a contract manufacturing partner for cable assemblies, wire harnesses, and electromechanical sub-assemblies, you have to consider a number of different criteria. One of the most important but often misunderstood is the country in which production will take place. The location, perhaps more than any other single factor, will affect the overall cost. Asia has been one of the most sought after locations for production because it is believed to be the least expensive. However, logistics challenges, quality issues, and rising labor costs in Asia have led to Mexico becoming an extremely attractive option in many instances.

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