Outside of the main manufacturing industries in Mexico (automotive, aerospace, electronics, IT, and medical devices), there are many other companies that are either in the supply chains for those industries or part of other manufacturing clusters, including home and industrial appliances, sporting goods, recreational products, apparel, furniture, transportation equipment, plastics, packaging, refurbishing, and others.
A key area of opportunity is in the consumer goods production market. General manufacturing for home-office furniture, indoor workout equipment, and health and beauty products are increasing in popularity post-pandemic as economic shifts address remote work environments, and new generations support socially conscious and economic brands.
Meanwhile, plastics production has also risen steadily, averaging an increase of 3.7% yearly since 2017. Products in this category include plastic materials, molds, and resins. The packaging sector of the plastic market in Mexico accounts for 47% of the market, and advancement in other sectors, including automotive and aerospace, will continue to create opportunities.
Furthermore, the favorable trade relations among the U.S., Mexico, and Canada will amplify the possibility of developing a North American trade bloc, where all areas of manufacturing will expand. This general manufacturing category is only expected to grow as more companies are considering nearshoring to Mexico as an alternative (or extension) to outsourcing to China.
General manufacturing plays a concrete role in the production for leading sectors, including automotive, aerospace, electronics, and medical device manufacturing. Some of the companies that act as supply chain partners for major industries perform manufacturing activities like:
Because the major general manufacturing industries are so well-established in Mexico, it’s relatively easy for companies to integrate themselves into these supply chains. IVEMSA will act as your partner throughout this process. As a shelter services company with over 40+ years of experience, we are well-versed in getting manufacturers up and running quickly and efficiently.
We maintain all necessary permits, certifications, and licenses to operate and utilize our local networks to recruit from a pool of top talent to fulfill production needs. Additionally, having the support of an established shelter company minimizes risk and exposure as a foreign operator in Mexico, while allowing for flexibility to change and grow.
By taking care of all administrative responsibilities, businesses have more time to focus on production needs and strategy and maintain complete operational control. Shelter services include HR and recruiting, taxes and accounting, as well as legal and trade compliance. Consider us your local expert, keeping you current on new government regulations and market trends.
U.S. and other foreign operators are diversifying their production options with many considering manufacturing in Mexico as their preferred choice. Partnering with a shelter company like IVEMSA can help you launch production quickly and efficiently and keep you competitive for the long term.
Mexico has a large talent pool of entry-level, semi-skilled, and advanced skilled workers, so you can easily fill every position along your assembly line. IVEMSA has extensive networks to grant you access to these labor pools in the region you need. Plus, our shelter services include recruiting and retention to maintain the necessary talent for your production. Additionally, we help you navigate Mexico's labor laws. Mexico recognizes a 48-hour work week and has specific legal and financial requirements in place when it comes to severance pay. Our expertise will ensure you stay both competitive and compliant when recruiting talent.
Personnel and overhead costs are typically lower in Mexico than the United States. On average, labor costs in Mexico decrease personnel costs by 40-50%. Additionally, with the close proximity between the U.S. and Mexico, logistics for travel and transportation are more cost-effective, especially when compared with manufacturing in China. Cost savings through the IMMEX program are another unique advantage of manufacturing in Mexico. The IMMEX program exempts operators from the 16% VAT for all temporarily imported goods, equipment, and materials. This tax savings is effective from the first day when working with a shelter company, as certification is already established.
Mexico’s border crossings and transportation options are among the most active in the world. Plus, it’s easy for your employees in the U.S. to visit your plants in Mexico—and IVEMSA is happy to assist with travel plans. With a solid infrastructure and supplier network in place, general manufacturing in Mexico can support growth strategies for today’s world’s leading operators. Furthermore, the close proximity also allows manufacturers to get products to market faster without compromising quality.
We’ll help you set up a shelter, find a site, recruit employees, and contract vendors for build-out. Shelter services can be tailored to meet your specific project needs. And setup time takes between three to four months, compared to the six or seven months it takes when operating as a standalone entity. Our experience, expertise, and knowledge help you launch production and keep things running for continual success.
Download our free guide for important facts on Mexico manufacturing, like these:
Contact us today and see how we can help you take advantage of all the benefits of manufacturing in Mexico - without the hassle.
