Comparative Study on Cost, Risks and Benefits of Manufacturing in Select Latin American Locations

Feb. 10, 2011 - PRLog -- San Antonio, Texas – February 7, 2011 – On February 11, Entrada Group Principal and President Paul M. Karon will attend Purdue University’s Annual Supply Chain Management Conference to present, for the first time, the results of Entrada Group’s study on the cost, benefits and risks of nearshore manufacturing locations in Mexico, Honduras, Nicaragua and Costa Rica.

The study’s results provide key insights for manufacturers serving the North American market. It evaluates total delivered cost and other risks in the interior and border regions of Mexico, Honduras, Nicaragua and Costa Rica. By using a model of a hypothetical enterprise and by comparing labor and operational conditions, the study clearly reveals that an interior location in Mexico, followed by the Mexico border and then Honduras are the most suitable locations for light manufacturing for the NAFTA region. Direct labor costs and freight costs were significant defining factors.

Paul Karon has 20 years of experience in the manufacturing sector in Mexico both as an owner and management executive in the maquila industry. Before founding the Entrada Group in 2002, he was the US shareholder and CEO of one of the largest shelter companies in Mexico. Before he chose Zacatecas as the site of Entrada’s first manufacturing park, Mr. Karon spent one year evaluating a myriad of  locations that could help optimize the competitiveness of manufacturers. It is thanks to the extensive research conducted by his company and his own professional experience that he has been invited to share key findings with manufacturers and supply chain leaders who are exploring new locations and opportunities to gain a competitive edge.

The Annual Supply Chain Management Conference of Purdue University’s Global Supply Chain Management Initiative is in its sixth year. The theme is “Unleashing the Global Supply Chain” and speakers will aim to address: “Where are key locations and why should my business be interested?” “What are the barriers to ‘unleashing’ this new supply chain?” “What do new opportunities look like?” and “What can be learned from my own or others’ past experiences?”

Conference organizers expect to welcome an audience of undergraduate and MBA students, manufacturing and supply chain industry professionals and Purdue University faculty.


For Editors:

For a full summary of the report’s findings, please contact Doug Donahue at ddonahue@entradagroup.com . Alternately, listen to the Entrada Group podcast interview with Kevin Jackson entitled “Best Locations for Offshore Manufacturing in North and Central America” found here http://entradagroup.com/podcasts.asp.

Headquartered in Austin, Texas, Entrada Group is a leading manufacturing shelter operator. It partners with international manufacturers seeking to enhance their competitiveness in the global market by swiftly and easily establishing a low-cost production facility in Mexico and the Americas to serve North American markets. On behalf of the manufacturer, Entrada Group oversees the legal and practical requirements of setting up operations in the host country and provides ongoing production support services, which leaves the client free to focus on its key competency: manufacturing.

Contact:

In the US:

Doug Donahue
Entrada Group
Phone: (210) 828-8300
Email: ddonahue@entradagroup.com  
Web site: www.entradagroup.com

In Europe:

Taunya Renson-Martin
Mach Media
Phone: +32 9 243 6011
Email: taunya.renson@machmedia.be