Over the past several decades, U.S. and other foreign companies have continuously relied on Mexico for their manufacturing needs. These manufacturers benefit from a lower labor cost and closer proximity than other countries, such as China, while retaining excellent quality. Although contract manufacturing is an option, a majority find the value of Mexico’s IMMEX maquiladora program to be far more favorable.
Contract manufacturing in Mexico may be a good solution for companies that are looking for predictable, consistent runs of a particular product or products. They may be in the earlier stages of business growth, and demand for their product is greater than their current production capacity.
However, with contract manufacturing, companies do not retain full oversight over production consistency and quality assurance. An advantageous alternative is Mexico’s IMMEX maquiladora program.
U.S. and other foreign manufacturers that work with a shelter like IVEMSA can use the maquiladora licenses already in place without the need to establish a separate business entity. A shelter alleviates a majority of the responsibilities and liabilities associated with manufacturing in Mexico while still allowing companies full control over operations. The team will coordinate and implement all logistics of your operations. This includes but is not limited to:
Not all contractors have the same benefits and outsourcing work presents a greater risk for lower quality and project delays, which is why having your own operation under the IMMEX maquiladora program is often the more effective, efficient solution for companies that want to begin manufacturing in Mexico.
Rather than outsource production through contract manufacturing, companies can work directly under IVEMSA’s shelter program or take advantage of its consultation services available for companies that wish to set up operations as a standalone entity.
A shelter has unique benefits when manufacturing in Mexico, such as:
However, when companies choose to move forward as a standalone, IVEMSA also provides guidance and expertise to ensure all permits and other documentation are in place for a successful start to any project with the exact same scope of shelter services. The only difference is standalone customers are not under the IVEMSA umbrella; they operate under their own legal business name.
Both the shelter and standalone solutions are preferred over contract manufacturing because companies maintain control over timelines and quality. Fortunately, IVEMSA handles both options and will customize plans based on a company’s unique needs. Manufacturers can feel confident in the experienced and well-established presence IVEMSA offers throughout the entire process to get operations up and running as smoothly and quickly as possible.
Get checklists to guide you through the process of setting up a shelter or stand-alone entity in Mexico, covering everything from the initial set-up to finding a site to preparing for trade compliance. Our Quick Guide will give you an idea of the differences between setting up a shelter vs. a stand-alone entity.
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