Mexico’s Industrial Talent Provides Relief for U.S. Manufacturing Demands

The focus on nearshoring to Mexico has become a common thread in discussions among American manufacturers over the past several years. The trade war with China followed by the official enactment of the revised free trade agreement between the U.S., Mexico, and Canada motivated more companies to relocate production from China and bring it closer to home.

More recently, a dip in the availability of industrial workers in the U.S. has been another key factor causing manufacturers to seek out Mexico as a long-term solution. Per the National Association of Manufacturers, 71% shared that one of their top concerns was an inability to retain and attract employees necessary to meet production demand.

With an older generation of U.S. laborers retiring and a newer generation disinterested or unqualified for the manufacturing roles available, leaders are looking to Mexico for answers. Mexico is known for its highly skilled workforce and will continue to be an opportunity for U.S. companies as they look to fulfill new roles.

However, the majority of those new to nearshoring to Mexico find working with a shelter company is strategically important. Having access to local networks and expertise is invaluable in overcoming recruitment and retention challenges.

Recruiting Workers Via Shelter Manufacturing Services

Shelter services in Mexico help U.S. operators recruit the right number of workers for the range of roles needed for their given project. With the demand for advanced skills and experience increasing, the market is competitive and companies must be prepared accordingly. A shelter company can provide guidance on:

• Compensation and benefit expectations throughout different regions
• Labor stability, such as population growth and average turnover rates
• Training program opportunities for recruitment of skilled workers
• General workforce data including workforce participation rates and availability of workers by sector

Additionally, having the support of a shelter provider helps companies navigate differences in workplace obligations, such as Mexico’s 48-hour work week, recognizing paid holidays and bonuses, and severance pay requirements.

Though U.S. manufacturers benefit from a larger talent pool at a lesser cost when operating in Mexico, there are still several moving parts they must secure to stay competitive. Fortunately, human resources is only one part of the full scope of shelter manufacturing services available.

Shelter Service Benefits Beyond HR

In addition to HR and recruiting, administrative tasks necessary for production also include taxes and accounting, legal and trade compliance, and industrial site selection. A shelter company like IVEMSA is equipped to help manufacturers launch production within three to four months, including worker recruitment to begin the project.

Additionally, as local industry experts, they can advise on workforce trends and changes to the law to ensure their manufacturing partners are following best practices. When it comes to securing cost-effective labor, many U.S. manufacturers are relying more heavily on Mexico to fulfill their talent shortage.

Thinking about expanding production to Mexico? Contact IVEMSA to learn about the benefits of shelter manufacturing services for your business.

Source:

https://nam.org/wp-content/uploads/2024/01/Outlook-Survey-December-2023-Q4.pdf