Mexico Nearshore Services & Planning for Success: What to Consider

Efficiency is a priority for every manufacturer, which is why so many decide to work with a Mexico shelter company when setting up their foreign operations.

Implementing shelter services means manufacturing companies can generally launch production in Mexico within three to four months, compared to the six to seven months it takes as a standalone entity.

However, there are several factors to consider when planning nearshore services, many of which remain in the control of the manufacturer. Going in with the right expectations can help streamline the process and stay on schedule.

Let’s take a look at an estimated timeline for manufacturing setup, and how working with a Mexico shelter company can help project managers divide and conquer to ensure everything runs smoothly.

Key Factors to a Successful Setup

The early stages of exploring Mexico shelter manufacturing as a business strategy start with deciding whether the shelter model is the best avenue or not. Though it depends on the production type and company size, most manufacturers decide operating under a Mexico shelter company is the easiest and safest way to do business.

A typical timeline for launching production is 12 months, with the following factors affecting this timing accuracy.

Preparing for the transition

It’s necessary to know upfront how much space is needed, the type of production and talent required, and the amount of equipment and materials that will need to be imported. All of this information is crucial when applying for permits and moving forward to the next phase.

Confirming site selection

Approximately, by month six, manufacturers are ready to visit potential site options in Mexico with the help of their shelter partner. The site selection process is the catalyst that launches all other shelter services necessary for production. Once a lease for a facility is signed, the remaining setup time is three to four months.

Coordinating closely with the project leader

The Mexico shelter company establishes a point of contact who will provide manufacturer-specific information regarding the different departments and approve decisions.

Responsibilities under the shelter include setting up HR, payroll, taxes, accounting, and customs compliance, among other administrative duties. Meanwhile, the manufacturer is in charge of inventory management, quality control, and other aspects of the production process.

Since many of these tasks are completed simultaneously, both parties need to be proactive and responsive to foster progress.

Speed Up the Timeline with a Shelter Company

Due to the proximity to the U.S. market, nearshoring has become an important part of a long-term strategy. Leveraging the expertise of a shelter company like IVEMSA can fast-track your production launch and save costs.

However, operating in a foreign country comes with learning curve challenges that can be time-consuming without the proper assistance. To get up and running as quickly as possible, Mexico shelter manufacturing offers the best route. It minimizes risk and liability for U.S. and other foreign manufacturers while allowing them to maintain full production control and ownership.

Learn more about the benefits this solution offers. Contact our team today.