The advantages of manufacturing in Mexico are many: lower labor costs, open trade agreements, and access to a skilled workforce. Mexico’s manufacturing industries, especially in aerospace, automotive, electronics, and medical devices, are known not just for the lower costs, but the quality of production as well.
Many companies save 40-50% on labor alone when they move operations to Mexico. They also save money on overhead costs like real estate and utilities, and thanks to Mexico’s IMMEX / Maquiladora program, see significant tax savings. By operating under a shelter, they also save on outside consulting fees and administrative costs.
The shelter program is a huge reason why Mexico manufacturing is so enticing. By operating under a shelter, companies are able to operate in Mexico with virtually no legal risk. The shelter provider is responsible for getting and maintaining all the permits and licenses and ensuring that the company is in compliance with Mexican laws.
Over 110,000 engineers graduate from Mexican universities and technical schools each year. Companies are able to do much more than simple manufacturing or basic assembly—many conduct R&D and design new products and systems in Mexico.
Mexico manufacturing has become known for producing quality goods in highly technical industries. The country also has some of the world’s most active border crossings and international transportation options. Many companies choose to manufacture in border cities like Tijuana, Tecate, Mexicali, Nogales, Ciudad Juarez, Chihuahua, and Monterrey to ensure fast delivery of finished products.
Aside from cost savings, one of the main advantages of manufacturing in Mexico is its proximity to the U.S. It’s easy to fly (or even drive) in to visit facilities. Communication is simpler since the Mexican facility is in the same time zone as corporate headquarters (or at most three hours difference).
The shelter program in Mexico is designed to reduce risk and liability for foreign companies. Instead of setting up your own legal entity in Mexico, you can run your manufacturing under one owned by IVEMSA. We’ll handle all the permits and licenses, lease your facility, and take care of administrative responsibilities like HR and accounting. You get to focus solely on manufacturing and will maintain complete control over your processes and production.
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.
GET THE GUIDE >Contact us today and see how we can help you take advantage of all the benefits of manufacturing in Mexico - without the hassle.
