Considering Expanding Manufacturing in 2025? Here’s What IMMEX Has to Offer

Mexico’s IMMEX program was established in the 1960s. What began as a way to encourage foreign investment and manufacturing has become central to an effective, long-term strategy for many global companies.

Leaders in various sectors, including automotive, aerospace, and electronic device manufacturing, have benefited from the IMMEX program over the years and continue to grow as a result. With eyes on the future, many anticipate what 2025 will bring and consider expanding manufacturing to Mexico to achieve the same.

Though transfer to the new U.S. administration in January will result in inevitable change, the details remain to be seen. However, looking back on the last Trump administration, manufacturers will recall the success of the China Plus One strategy.

During that time, trade tensions with China, as well as production lockdowns due to the pandemic, motivated global manufacturers to reduce their sole dependence on China and invest in other locations, including Mexico.

For those considering nearshoring to Mexico in 2025, the benefits of the IMMEX program remain in place and are amplified by the expertise of a Mexico shelter company. These benefits include:

VAT Exemption

The IMMEX program has successfully operated for decades without any major modifications since it first started. Part of the advantage it provides is its pairing with the value-added tax (VAT) certification.

With this certification, manufacturers are exempt from the 16% VAT on all temporarily imported goods, materials, and equipment, which add up to significant savings. However, obtaining IMMEX program approval and VAT certification is a challenging and time-consuming process.

As a way to save time and costs, the majority of foreign manufacturers chose to partner with a Mexico shelter company. A shelter is equipped with all the proper certifications and permits necessary to launch production quickly and efficiently.

Diversity in Manufacturing

With the core purpose of encouraging foreign manufacturing in Mexico, the IMMEX program also remains a way for U.S. and other foreign companies to diversify their portfolios.

While many may choose to approach 2025 with a China Plus One strategy in mind, other manufacturing companies may be expanding production internationally for the first time. Either way, the IMMEX program provides eligible manufacturers cost-saving benefits which a Mexico shelter company can help maximize.

Ability to Start Small

Furthermore, the IMMEX program doesn’t require manufacturers to have a huge presence in Mexico. As an example, maquiladoras can start with a low-risk investment of 15,000 square feet and 50 people to establish a footprint.

Then, as they find success, a shelter company can offer support and guidance on the best way to continue expansion and scale as needed to stay profitable.

Explore IMMEX Advantages with a Shelter Company

Manufacturing in Mexico under a shelter provides a quicker road to IMMEX approval and VAT certification compared to operating a standalone entity. It also minimizes the risk and liability of manufacturing in a foreign country.

As the new year approaches with potential changes in the air, Mexico manufacturing continues to be an interesting and effective strategy to consider. However, the transition is more seamless with the help of local experts to guide the way.

Want more information about IMMEX program benefits and the extent of what Mexico shelter services offer?

We’re here to help you reach your production goals. Contact IVEMSA today.