Site Selection Spotlight: All Eyes on Mexicali When Nearshoring to Mexico
04.12.24Nearshoring to Mexico offers a range of benefits for U.S. manufacturers looking for a high-quality solution that’s cost-effective enough to expand. Many times when a company is considering Mexico as part of its production strategy, the building plays a key role in the project.
In addition to the favorable proximity to the U.S. market, U.S. and other foreign operators can choose from Class A buildings in secure areas with all the amenities they need for production.
The majority of industrial buildings in Mexicali (and other major manufacturing hubs in Mexico) are designed with the same quality and world-class construction as premium facilities in the U.S. but with lower prices averaging $.70 per square foot per month.
Here’s a look at why Mexicali stands out as a prime industrial spot for those nearshoring to Mexico and how a Mexico shelter company like IVEMSA can make site selection easier.
Why Consider Sendero Industrial Park
As Mexico manufacturing grows, so does the competition for available buildings. Since production can’t start without securing an industrial space, site selection is the important first step.
The Sendero Industrial Park in Mexicali is a growing manufacturing hub with over 10,000 houses within a 3km radius. It’s close to the U.S./Mexico border, equaling approximately a 25-minute drive on main roads, compared to travel from Tijuana to the U.S. border, which can take approximately 1-1.5 hours or more.
Sendero’s multi-tenant building can be customized to meet a company’s unique needs and grow with them as they expand. It’s within easy access to the commercial port of entry, major highways, and airports. Additionally, it’s conveniently close to a skilled workforce, a significant benefit when recruiting labor.
Once a building lease is secured, which takes typically three months of negotiations before a contract is signed, it takes another 30 days to connect the IMMEX program certification to the address. Once that’s established, manufacturers can begin setting up utilities, importing equipment, and other required production tasks.
Meanwhile, a Mexico shelter company can work simultaneously setting up all the administrative departments involved with production. This cuts the timeline nearly in half compared to setting up as a standalone entity, and manufacturers can launch production within three to four months.
Value of Shelter Services in Mexico
The role of a shelter company starts with site selection to help U.S. and other foreign manufacturers narrow down viable locations that align with their budget. A site selection analysis includes an overview of different areas, cost comparisons of facilities, and other geographical data to guide decision-making.
Shelter services in Mexico also include HR, accounting, taxes, and trade compliance as part of a full scope of responsibilities necessary to set up production in Mexico. Manufacturers aren’t burdened with hiring individual departments, enabling them to save time, costs, and resources while also reducing the learning curve of setting up operations in a foreign country.
Contact IVEMSA
The Sendero building is one of many lucrative industrial sites available in Mexico. Although, each company will have its own specific requirements for their projects.