17 years on, Scott Electronics’ Mexico expansion pays off

The decision has paid off for both locations. As reported in a recent article in the New Hampshire Union Leader, Scott Electronics’ Founder Jack Metzemaekers believed the company would have lost millions if didn’t take the concerns seriously: “We had two (original equipment manufacturers) in the medical industry who said, ‘Look, we need to cut costs. We know what you’re paying for material here. We know what your labor costs are here. However, we have flagship products that we need to procure from you, but we can’t pay the price. So we will help you open up a facility. You’ve got your choice of China and Mexico.’” Metzemaekers’ choice has paid off. Last month, Scott Electronics celebrated the expansion of their manufacturing headquarters in Salem, where they spent USD 1.8 million to renovate the 40,000-square-foot first floor of the Salem facility, built in the early 1980s. They have nearly doubled the employee base to 166 since they opened the doors in the Nogales, Mexico plant in 2002, where 55 people are employed. In 33 years, Scott Electronics has never had to lay off an employee, at either location. Scott Metzemaekers, director of quality assurance, told the NH Union Leader that the addition of the Mexico plant resulted in more work coming to Salem: “Moving work to Mexico doesn’t mean Americans lose jobs. It actually helped create jobs. What it basically is, is that customers need a low-cost solution, and that low-cost solution is a country that is either going to be a Mexico, a Vietnam, a China, whatever it may be.”