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Several cities in the State of Sonora appear on the list, which is unsurprising since it is considered one of the fastest growing states in Mexico. Sonora has a highly skilled workforce and offers the advantages of offshore manufacturing without the logistical uncertainties. Situated on the eastern coast of the Sea of Cortez is Guaymas, Sonora, which is home to the fastest growing aerospace clusters in Mexico. The city of Guaymas was ranked 5th in the Top 10 Small Cities Cost Effectiveness. Guaymas has the reputation of being cost-effective with labor-intensive support. Guaymas rightfully earned its spot as 5th in cost effectiveness across the Americas—it allows access to a stable, competitively priced Mexican labor force with a deeply embedded manufacturing culture, as well as Mexican industrial parks and manufacturing space that have been recognized for their higher quality; it is within close proximity to the border allowing for cheap transportation of goods in shorter amounts of times; there are strong connections with the local community and government; and there are low rates of employee turnover and absenteeism. As far as efficient production and delivery, there are dependable sources of energy, a local seaport, access to international airport, and rail services. There is also a four-lane commercial highway to U.S.-Mexico Border. Cost-effectiveness judging criteria: • Average annual salary for unskilled, semi-skilled, and skilled workers • Average annual office rent • Average annual rent for a factory/industrial unit • Average price of three-bedroom house • Cost of electricity • 3-star/4-star hotel room price • Petrol prices • Minimum wage ($4.98/day) • Cost of registering property • Cost to export • Cost to import • Cost of establishing a business • Corporation tax-state • Corporation tax-country Currently things are looking positive with the opening of a new supply chain office in Guaymas by Rolls Royce; it will strengthen partnership with key suppliers in a region that is broadly acknowledged as one of the foremost aerospace industry locations in Mexico. Just about a third of sophisticated manufacturing companies in the Mexican aerospace industry are based in the state of Sonora. Sonora is a northwestern state bordering the US, with a highly evolved infrastructure and skilled workforce. It is accessible to the U.S. and has well developed transportation routes. Guaymas was also listed in the top 10 Port-Related Intermodal Sites. Texas and the areas along the Gulf Coast are all functioning to enhance aptitude both as a means to have capacity for an increasing consumer foundation, as well as to contain increased container and import traffic coming over the Mexican ports of Guyamas and Lazaro Cardena. For years American importers and Mexican companies in Sonora and Chihuahua have longed to be able to import and export through the port, but lack of infrastructure lead to abandoning the idea or being forced to use ports that were hundreds of miles away and much more costly. What makes Guaymas alluring as a Mexican manufacturing location is its location as the northernmost port on the mainland side of the Sea of Cortez. That position, fixed with the fact that the two southernmost west coast ports in the US are heavily trafficked makes Guaymas, just 240 miles from the US border, a good choice. A new port service at Guaymas has allowed linking its port with major maritime destinations of worldwide. Guaymas is already on the radar for being one of the most cost effective places for manufacturing, and should stay there for the foreseeable future.  Steven A. Colantuoni is the director of corporate marketing for the Tucson, Arizona-based Offshore Group.Mexico Outsourcing Solutions , Mexico Manufacturing Locations
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