What Are Common Mexico Business Shelter Services?
04.16.19
Businesses that seek expansion often turn to Mexico shelter services to benefit from a cost-effective solution for their day-to-day operations without the requirement of becoming an entity in a new country. Under the umbrella of Mexico shelter services, foreign businesses (particularly U.S. manufacturing companies) can stay competitive and compliant. To grow and scale, a company needs to consider several factors, including industrial space, employee recruitment, and government compliance, all which takes time to coordinate and implement.
A typical timeline to expand is 6-8 months just to begin understanding everything that’s required. Under a shelter operator, it’s far easier to ramp up and start production. The time is closer to 3-4 months to be near up and running. Shelter services help to fill the gap for companies who aren’t quite sure where to get started. The goal of partnering with a Mexico shelter company is to allow businesses more productivity and profitability, while reducing risk and liability as a foreign company, in a timely way.
Read more: Bridging Cultural Differences When Manufacturing in Mexico.
Industrial Real Estate in Mexico
One of the first things companies consider during expansion is finding the right real estate. Working with an experienced Mexico shelter company saves time and hassle during this part of the process due to first-hand knowledge of ideal industrial parks and space options. A shelter operator also acquires all of the necessary regulatory permits, negotiates leasing terms and rates, and sources vendors and suppliers as needed.
Human Resources and Recruiting
Employee recruiting is also part of Mexico shelter services, which helps to ensure all employees are compliant with foreign labor laws and regulations. Employee cost savings is one of the biggest incentives for businesses to expand to Mexico. The country has lower labor rates for workers than the U.S.; plus, the cost of living isn’t as high.
Additionally, laborers follow a 48-hour work week. This translates to increased productivity compared to the average 40-hour U.S. work week. Each company then maintains responsibility for hiring and training, which allows for control over the implementation of rules, guidelines, and company culture among all employees.
Customs and Trade Compliance
Trade compliance is another shelter company service. IVEMSA, specifically, performs a duty-impact analysis for every client. This is a pre-vetting of machinery and raw materials imported through the IMMEX program to make sure that duties will be low or non-applicable based on products, classifications, and origin. This is helpful to establish if a project makes economic sense since some products might have high duties. All permits and licenses are secured as logistics require. This saves time, money, and headache for companies who aren’t as familiar with the import/export regulations.
Working with a Mexico Shelter Company
There’s a profitable reason why Mexico is the second largest importer/exporter of the U.S. with vehicles and machinery falling into the top categories. The two countries have partnered for years and continue to do so under the bridge of good relationships and strong shelter companies to keep everything connected.
The relationship companies build by working with a reputable Mexico shelter company can save months of planning and operations. It also provides peace of mind for businesses that want to benefit from the cost savings but aren’t as confident with the changing compliance regulations. Engaging in a business shelter solution helps companies stay flexible and grow while maintaining production control and minimizing risk and liability.