Maximize the Value of Shelter Services in Mexico by Choosing the Right Partner
12.11.24The strength of manufacturing in Mexico has resulted in U.S. and other foreign companies continuing to invest in production year after year. Though numerous global leaders have already established a strong footprint, many others are considering the option of expansion for the first time.
The cost-competitive advantages alone make it an alluring opportunity. However, the upside of Mexico manufacturing comes with challenges as well. Therefore, the majority of foreign manufacturers enlist the help of a Mexico shelter company to create a smoother transition and more efficient setup.
To maximize the value of shelter services in Mexico, it’s important to evaluate the solutions this type of support offers, and what to keep in mind when deciding on the right shelter partner.
The Benefit of Shelter Services in Mexico
A shelter company provides a solid infrastructure and local expertise that helps U.S. and other foreign manufacturers minimize risk and liability, maintain compliance, and save costs when launching production.
Shelter services include managing a range of administrative responsibilities which frees up time for business leaders to focus on their manufacturing processes.
Solutions a Mexico Shelter Company Offers
Foreign manufacturers that want to establish a footprint in Mexico must be well-prepared to navigate the cultural nuances and complex regulatory environments associated with operating in a foreign country.
Fortunately, for every common challenge a business may encounter, a shelter company has a solution. Employee recruiting, IMMEX navigation, and site selection are part of the full scope of shelter services available to ease the transition to manufacturing in Mexico.
Employee Recruiting
Many U.S. manufacturers face the challenge of recruiting workers, which is why they’ve turned to Mexico to fulfill a range of production roles. A shelter company provides an experienced understanding of local labor laws and trends to help manufacturers recruit and retain top industrial talent.
IMMEX Navigation
Mexico’s IMMEX program offers favorable tax benefits for foreign manufacturers. When paired with the VAT certification, eligible manufacturers are exempt from 16% VAT on all temporarily imported goods, services, and equipment. However, the road to approval is time-consuming and often met with delays and challenges.
Partnering with a Mexico shelter company solves this problem since it maintains all IMMEX certification and all permits required to launch production. As a result, manufacturers working with a shelter also benefit from VAT savings from day one.
Site Selection
The upward trend of manufacturing in Mexico has made finding industrial space more competitive over the years. Understanding where to set up production and research facilities is a complex undertaking.
As part of shelter services in Mexico, site selection involves research and comparison of viable sites based on a company’s sector and production specifics. Then, site visits are scheduled so company leaders can evaluate each space in person before making a decision.
Considerations for Choosing a Shelter Partner
To make the most of a shelter company’s expertise, it’s best to partner with one that’s able to meet current needs but is also flexible enough to support future growth as demands change. Seek out a shelter company that delivers:
- Transparency – A key advantage of working with a shelter company is savings on administrative labor, infrastructure, permits, and license fees. A reputable shelter company will be transparent with pricing so there are no surprises or “hidden” fees when it comes to total costs.
- Flexibility – Maintaining agility is important to keep up with demand and scale production in a sustainable way. Shelter services should allow for agility and make it easy to stop production if manufacturing in Mexico doesn’t turn out to be the best solution.
- Credibility – A history of industry excellence and high client retention are favorable signs that a shelter company has the level of experience and reputation necessary to guide your success.
Get Started with IVEMSA
IVEMSA has nearly 40 years of experience in providing excellent service and flexible solutions for foreign manufacturers and maintains a 15-year average customer retention rate.
Explore how our shelter services can be customized to meet your production goals. Contact IVEMSA today.