BROWNSVILLE, Texas - Jason Wolfe, CEO of NovaLink, spoke about what led to commencement of its US-Mexico based manufacturing business.
NovaLink is a U.S. and Mexico manufacturing service provider that connects companies with facilities, labor and supply chain support to produce goods across the border. The company has served the Brownsville and Matamoros communities for 36 years.
“NovaLink is owned and run by individuals that have come from a long line of manufacturing,” Wolfe said. “This is what we do. We are not lawyers or real estate agents that had a really neat idea. We are actually manufacturers. So, we live it, we breathe it, we understand it and that makes us a very viable partner to our clients.”
According to its website, NovaLink provides a best-in-class, outsourced solution for domestic and international manufacturers.
“NovaLink is a leading outsourcing solution for companies looking to relocate or start up manufacturing in Mexico in a low-cost labor environment close to the U.S.,” the website states.
“We at NovaLink are committed to helping our partners succeed in their manufacturing endeavors. Our company's success depends on the success of our partners, and our objective is to ensure they are satisfied with the service we provide for their nearshore manufacturing needs for years to come.”
Wolfe said his father founded NovaLink after seeing the need for a company in Mexico that was able to manufacture a variety of different services.
“His thought was, if he started a company in Mexico that had all the infrastructure, the buildings, the overhead staffing, the knowledge of the culture, the knowledge of the rules and requirements that go along with Mexican manufacturing, he could offer that service to everybody and those companies would be able to leverage the infrastructure and experience that NovaLink would bring to the program,” Wolfe said. “That is really where the idea came from, and that gave birth to manufacturing everything from potpourri, pharmaceuticals, clothing, automotive parts and medical devices.”
Wolfe said the company has had an impact on both Matamoros and Brownsville. NovaLink provides business for leasing warehouse facilities, custom brokers and transportation companies.
“We have played a role here in Matamoros. From a community standpoint, I cannot tell you how many thousands of families have been impacted through employment, and the extended financial benefit of what NovaLink provides,” Wolfe said. “But we are also leasing facilities in Mexico which are benefiting companies in Mexico, all the things that we purchase locally, those are having a secondary benefit from an economic standpoint.”
The company provides analysis on the state of trade for its customers in newsletters. Wolfe stated in an email how trade policies affect NovaLink and its clients.
“The tariff policies enacted over the past few years have increased the costs of almost every aspect of the finished product,” Wolfe wrote. “Raw materials that are not available for sourcing within USMCA [The U.S.-Mexico-Canada Agreement] and general IEEPA [International Emergency Economic Powers Act] rates placed on Mexico have without argument increased the costs to our clients. As the argument goes, "other countries pay the duties" is just plain false. Our clients are the importers of record into the U.S. and thus are paying the bill. Ultimately this gets passed on to the consumer, maybe in small increments over time so it is not shockingly visible, but it will wind up coming from them eventually.”
NovaLink’s goal for the future is to continue to expand geographically. Wolfe said his company’s growth would provide benefits for both the Mexican and American community alike.
