Mexico Shelter Services: A Quick Overview of Benefits

Mexico shelter services began in the 1960s, introducing a way for foreign manufacturing companies to be “sheltered” under the IMMEX program; thereby, reducing the risks and liabilities typically associated with production. For decades, industrial sectors such as automotive, aerospace, medical device, and electronics manufacturing have used shelter services as part of their operational strategy.

These special services are provided by shelter companies and include a range of administrative responsibilities necessary to get production up and running, including site selection, HR and recruiting, and legal, tax, and trade compliance, among other tasks. Since their inception, global companies have reaped the benefits and continued profitable growth while nearshoring to Mexico.

Therefore, understanding the benefits, particularly the cost-saving opportunities, of working with a shelter company gives U.S. and other foreign operators an advantage, as Mexico shelter services help to deliver a valuable, flexible manufacturing solution.

What’s Included with Mexico Shelter Services?

One of the goals of operating under a shelter is to create a more seamless transition to nearshoring in Mexico. Delegating administrative tasks allows company leaders to focus on production while still maintaining full control over all processes and ownership of equipment and materials. Under a shelter company, services include:

• Site selection analysis
• Labor cost analysis
• Human resources (recruiting, retention, payroll, etc.)
• Legal and tax services
• Trade compliance
• Environmental health and safety

These shelter services can be customized to fit the needs of each company and are a cost-effective way to launch production for companies new to Mexico manufacturing.

Shelter Services Benefits

The majority of manufacturers choose to work with a shelter company due to the extensive list of benefits it provides, such as:

• Cost savings – Manufacturers operating under a shelter benefit save on labor, permits, licenses, taxes, and infrastructure costs.
• Quick startup time – Shelter services in Mexico typically launch production in three to four months, nearly half the time it takes as a standalone entity.
• Reduced learning curve – Operating in Mexico can be challenging, but the local expertise and experience of a shelter company ensures compliance with laws and regulations as well as insight into best options when selecting a facility site.
• Flexible manufacturing – Mexico shelter services allow for agility as production needs change. Manufacturers can scale up production and/or eventually graduate from the shelter program altogether as part of a long-term strategy.
• Production control – Administrative tasks are handled through the shelter company, while manufacturers maintain full production control and intellectual property rights.

These are a few of the many benefits shelter services in Mexico provide. However, to ensure a shelter company is a good fit, evaluate your processes, goals, and needs, and start by asking the following questions:

• What fees are involved?
• What are the specific services offered?
• What’s included with lease costs?
• Is there a separate operating license for each company?

At IVEMSA, we offer transparency with shelter services pricing so there are no hidden or surprise costs. Additionally, we work collaboratively with our manufacturing partners to meet their unique demands. We support U.S. and other foreign manufacturers as they transition their operations to Mexico and strategize with them as they continue to grow.

To learn how our shelter services can help you save on costs and reach your production goals, contact IVEMSA today.