Customizing Nearshore Manufacturing to Meet Company-Specific Needs

Nearshoring to Mexico has become the go-to strategy for U.S. manufacturers looking for cost-effective, high-quality operating solutions. Over the years, Mexico has become the number one trade partner with the U.S. due to its proximity, stable workforce, reliable transportation and supply chain networks, and favorable trade agreements, including the USMCA.

While nearshoring manufacturing is advantageous to all sectors, most companies require customization to ensure the solution fits both their short- and long-term needs. And a shelter company can adjust its services to accommodate specific requirements.

Tailoring Benefits Based on Company Size

Manufacturing companies of all sizes appreciate being able to leverage Mexico’s low labor costs and established infrastructure to continue growing their production. However, it’s the small to mid-sized businesses that find working with a Mexico shelter company most helpful.

U.S. and other manufacturers who operate under a shelter reduce their risk and liability as they launch and grow their operation. Manufacturers maintain all control and ownership of their processes and equipment while delegating administrative responsibilities to the shelter company. This saves on costs and speeds up set up time when nearshoring to Mexico.

Also, a shelter company can still help larger companies that have established their own entities with select shelter services as well. For instance, some standalone entities may need assistance with site selection or trade compliance only, while others may require the entirety of shelter services to get started. Having this flexibility makes working with a shelter company a beneficial part of doing business in Mexico.

Applying Nearshoring Solutions Per Sector

In addition to encompassing the needs of all company sizes, the advantages of nearshoring manufacturing and shelter services are applicable to main industrial sectors.

Automotive Manufacturing

Automotive manufacturing companies have continued to succeed due to the availability of skilled industrial labor, proximity to the U.S. market, and incentives through the USCMA. The automotive sector is one of the largest in Mexico, with leading global manufacturers expanding their offerings and capabilities through continued foreign direct investment.

Aerospace manufacturing

Another sector experiencing rapid growth is aerospace manufacturing. Nearshoring to Mexico allows companies to benefit from established supply chains, reduce lead times, and save on operational costs. Due to established aerospace manufacturing hubs throughout the country, new companies can rely on the transportation network, facilities, and supply chain relationships already in place.

Medical Device Manufacturing

The medical device manufacturing sector also benefits from Mexico’s industrial workforce and convenient proximity to the U.S. With a slew of medical device companies headquartered in Southern California, Mexico serves as a natural extension of development but with fewer costs and quicker time to market to meet constantly changing consumer demands.

The Unique Advantage a Shelter Services Company

Nearshore manufacturing is seamless with the help of a shelter company. A shelter company offers administrative support in all departments necessary to launch production. This includes HR and payroll, taxes and accounting, and trade compliance.

Rather than navigate establishing a foreign entity alone, their expertise and experience working within the manufacturing industry reduces the learning curve as well as minimizes risk and exposure. Plus, shelter services allow for flexibility as companies scale up or down their production needs.

Learn if our shelter services are a good fit for your company. Let us tailor a solution that will best support your production goals. Contact IVEMSA today.