Nearshoring v. Offshoring
A company is said to be "offshoring" when it manufactures or assembles its products in another country. The term "nearshoring" is substituted when that country is near the company's home country. For example, a U.S. company is nearshoring if its products are manufactured in neighboring Mexico.
Offshoring and nearshoring take advantage of the host country's low cost of labor and production. However, long-distance transportation costs and changing world conditions make nearshoring the more attractive option - especially if the end user market is in North America.
The Tijuana Economic Development Commission reports "... the quality, IP protections, lower-cost and logistical benefits of the City of Tijuana have allowed it to grow the largest concentration of medical device manufacturing employment in North America ... Tijuana actually leads employment levels amongst all other medical device manufacturing regions of North America - with over 32,000 employees in 2013."
This exceeds the comparable employment base in Minneapolis-St. Paul, New York State, Boston Metro, Los Angeles County and similar centers of medical device manufacturing in the United States.
Gain Speed and Flexibility
For many OEM's, outsourcing everyday production gives them greater ability to:
- increase speed-to-market
- absorb business acquisitions
- launch new products
- augment current production
- improve logistics
- respond to changes in demand
- maintain strategic flexibility
- avoid large investments in plant and personnel
Do What You Do Best, and Outsource the Rest
Transferring responsibility for mass-production to an outside manufacturing expert allows the OEM to focus its internal resources on value-producing and entrepreneurial activities that are central to its success. This means the OEM can invest more in its technology, products, markets, and sales, and less in day-to-day manufacturing.
Manufacture with Confidence
By outsourcing to a competent manufacturing partner, like Coastline International, the OEM places mass-production in the hands of an organization singularly and expertly focused on production. Its long term success depends on responding to the needs of client OEM's by producing and delivering products of consistent quality at the lowest possible cost.
Coastline International Advantage
Coastline is a U.S. corporation that has been manufacturing in Tijuana Mexico for three decades. Partnering with Coastline allows US-based electronics and medical device companies located in Minneapolis, Chicago, Northern California, and elsewhere in the US, to realize the important benefits afforded by its nearshore manufacturing location.
- Free trade cost benefits (NAFTA)
- Cost savings of 30% or more
- Import/Export management
- Skilled labor
- California and international points of entry
- Contract Manufacturing
- Shelter Services
- Proven dependability and service
- 30 years of manufacturing experience