Mexico Is Not China—And That’s a Good Thing

Amid the policy turbulence of 2025, U.S. and Canadian manufacturers are confronting a hard truth: the old model of offshore production, particularly through China, no longer works. Tariff uncertainty, geopolitical tension, supplier instability, and logistics disruptions have revealed just how exposed global value chains have become.

This post outlines why Mexico is emerging as a strategic manufacturing destination, not because it replicates China’s contract manufacturing infrastructure, but because it offers companies the opportunity to take back control. It’s a chance to reconnect with the production side of the value chain in a way that’s both cost-effective and operationally resilient.

We also explain why Tetakawi’s model is purpose-built to help companies do just that: launch quickly, scale sustainably, and regain the operational discipline many have outsourced for decades.

The Real Crisis: Not Just Tariffs, But Overdependence

Executives today are tired, not just of trade wars, but of the whiplash. Since early 2025, policy shifts have come in waves. Announcements, retractions, retaliations, shifting interpretations, it’s been a nonstop game of economic ping-pong. What used to be stable is now anything but.

Yet volatility alone isn’t the root problem. It’s a symptom of a much bigger issue: overdependence on China.

More than three decades of contract manufacturing in Asia helped reduce costs, but it also hollowed out internal capabilities. This trend accelerated following China's entry into the World Trade Organization in 2001, a period widely referred to by economists as the 'China Shock.' Learn more about the China Shock and its long-term effects on U.S. manufacturing.

Today, many product companies lack the operational knowledge to run production, adjust processes, or even evaluate quality firsthand.

That’s the real risk. Tariffs are the symptom. Lack of control is the disease.

The Crossroads: Stick with the Status Quo or Define Your Future

Let’s be clear: Mexico has contract manufacturers. Global giants like Flex and Jabil operate here. The country supports complex manufacturing across automotive, aerospace, electronics, and medical devices. You can absolutely find partners who will build your product.

But here’s what we’ve learned over years of fielding calls, from both today and back in Trump’s first presidency when tariffs surged the first time:

• Companies want plug-and-play simplicity.

• They expect an ecosystem as dense and vertically integrated as China.

• They want to move fast without getting involved in the operation.

Most of them return to China. Not because Mexico lacks potential, but because these companies are still playing by an outdated playbook.

So yes—you can stick with the status quo.

But the smarter question is: what could you build if you defined your own playbook?

What if you stopped thinking about POs and units, and started thinking about strategic capability?

What if your production footprint became a source of competitive advantage, not just a cost line?

What Works: Owning Your Manufacturing Process

The companies succeeding in Mexico today show up with a different mindset. They don’t come looking to outsource everything. They come to reengage with their product.

They understand that control is the new advantage.

By owning the production process:

• They shorten lead times.

• They protect IP.

• They adapt faster to customer needs.

• They reduce total cost of ownership.

They’re not returning to the old ways. They’re building something better.

Why Reshoring to the U.S. Isn’t the Silver Bullet

President Trump has renewed his push for reshoring manufacturing to the United States. On paper, it’s an appealing message. But the numbers don’t support the fantasy.

The U.S. manufacturing sector is facing acute workforce shortages. As of the most recent data, there are more than 482,000 open manufacturing jobs across the country, a figure that continues to climb as older workers retire and too few younger workers enter the trades. Source: National Association of Manufacturers

The demographic headwinds are real:

• An aging workforce with limited backfill

• Limited vocational training pipelines

• Low interest among younger generations in industrial careers

Combine that with high construction costs and multi-year timelines to build new facilities, and reshoring to the U.S. becomes far less practical in the near term.

If you’re trying to get operational in the next 6-12 months, Mexico is the better bet.

And more importantly, it’s a bet you can control.

The Tetakawi Model: Control Without the Complexity

Tetakawi is not just a service provider. We are an execution partner.

Our model is rooted in the core legal framework of Mexico's shelter program, a structure that allows foreign companies to operate without establishing a legal entity. But we go further. We remove the inefficiencies, layers of confusion, and friction that often come with traditional shelter providers.

We are a full-scale platform for manufacturing execution. Our job is to eliminate the non-strategic distractions, the bureaucratic hurdles, compliance concerns, and administrative complexities, so you can focus on building your product, your team, and your long-term competitive advantage.

We’ve helped hundreds of companies enter and thrive in Mexico. Today, we support over 60 foreign manufacturers operating across our Manufacturing Communities in Sonora, Saltillo, and Mazatlán.

Here’s how it works:

You Bring:

• Your production process

• Your equipment

• Your quality expectations

• Your operational leadership

We Handle:

• Labor Management

• Import & Export Administration
• Facilities Management
• Environmental, Health & Safety
• Purchasing & Supply Chain Support
• Accounting & Fiscal Compliance
• ... and more. 

And if you’re reading this and thinking, “Sounds compelling, but it’s not for me—I need to stick with contract manufacturing,” that’s fair. In fact, we can help connect you with sourcing agents and CMs in Mexico who may be a good fit.

But we’d also challenge you to think bigger.

This isn’t just a logistical decision. It’s a strategic one. Our model is built to let you take back control of the production side of your value chain, to build something stronger and more resilient. You get to reap the benefits of Mexico’s cost structure, workforce, and proximity without getting bogged down in functions that don’t contribute to your strategic edge.

You don’t need to worry about payroll, environmental compliance, import administration, or local labor law. We’ve got that covered, and we ensure it’s done the right way.

It’s not just a better way to manufacture in Mexico. It’s a better way to lead.

When companies take this approach, they get:

• Operational control—because your team manages your product.

• Speed to market—because we eliminate startup friction.

• Cost savings—because our shared services model drives down overhead.

• Scalability—because we help you grow without outgrowing your support.

Most importantly, they get the satisfaction of being builders again—not just buyers.

How It Works in Real Life

So how does this model actually come to life?

It starts with a conversation. When a company approaches Tetakawi about manufacturing in Mexico, the first step is always the same: we seek to understand why. Not every company is a good fit for Mexico, and not every reason for exploring it will hold up as a long-term strategy.

If there’s a strategic foundation, we move to education. We walk you through the nuances of the different regions in Mexico—because there’s no single “Mexico.” Border cities differ from central states, coastal hubs differ from industrial corridors. Each has unique labor markets, logistics profiles, and sector ecosystems. Our job is to help you find the right one.

Next, we guide you through a cost estimation process. What would it cost to build and operate in Mexico? We make the economics transparent.

Then we conduct a customs and compliance analysis, including USMCA qualification assessments to ensure there are no surprises down the road. If your product doesn’t qualify today, we help you understand what changes may be needed.

At that point, we invite you down. You’ll visit our communities, tour available buildings, speak directly with current clients, and interview potential plant leadership. We help you turn possibility into real-world context.

From there, you decide.

If you choose Tetakawi, we roll up our sleeves. We lease the space, make any modifications needed, help you recruit and onboard your team, import your equipment, and ensure full compliance with all labor, trade, safety, and environmental regulations.

In the best-case scenario, we’ve helped companies begin operations in as little as 30 days from contract signing. More typically, timelines range from 3 to 6 months, depending on building availability and workforce readiness.

You get the keys to a facility where you control all production-related activities, while we continue to run administrative functions in the background.

It’s how execution becomes reality.