Monterrey Ignites Industrial Growth Along the U.S./Mexico Border

Nearshoring to Mexico continues to be a go-to strategy for U.S. and other foreign manufacturers. In addition to the trend of global companies moving their operations from China, there’s also been a surge in overall production, and Mexico has risen to the top as the most cost-effective approach for expansion.

Baja California has largely been the most popular industrial region, due to its close proximity to the U.S. However, Monterrey also plays an important role in the growth of foreign direct investment in Mexico along the U.S./Mexico border. Here are a few reasons why U.S. manufacturers have their sights set on Monterrey, and how Mexico shelter services help to make the transition easier.

Proximity and Presence

Monterrey is situated centrally as the third largest city in Mexico. Its proximity to the middle and eastern parts of the U.S. make it a prime location for manufacturers interested in expanding their production.

In addition to U.S. operators, there is also a growing presence of Chinese and Korean companies that rely on Mexico’s infrastructure, supply chain, and labor force to meet their target demands.
Monterrey offers all the amenities and benefits of a major metropolitan area, and as it continues to receive foreign direct investment, the opportunities will continue to grow.

Labor Force Benefits

Monterrey is home to the best private universities in the country with a highly industrial presence among its workforce. Over 11,000 technicians graduate every year, along with 5,800 engineers, and 20,000 students receiving Bachelor’s degrees.

With manufacturing being a core industry in Monterrey, foreign operators will have an easier time with job placement to fulfill open roles quickly. Plus, there’s also the benefit of lower cost labor rates in Mexico across a range of roles, especially in comparison to the U.S. and China.

Shelter Service Partnerships

Monterrey is Mexico’s largest recipient of foreign direct investment. And with an increasing number of companies setting up operations, many are looking for a local partner. One of the unique advantages of nearshoring is the availability of shelter services.

A Mexico shelter company like IVEMSA can help with sourcing building options, setting up utilities, recruiting employees, and handling tax and trade compliance, among other administrative duties necessary to launch production. With built-in expertise and experience, those who partner with a local shelter company can get their operation up and running quickly.

When Mexico shelter services are in place, it takes three to four months to launch production, which is nearly half the time it takes for standalone entities. Additionally, U.S. and other foreign manufacturers operating under the shelter umbrella reduce their legal exposure and liability when nearshoring to Mexico. Meanwhile, the partnership also helps operators save significantly on costs for everything from hiring employees to securing permits and certifications.

Exploring Manufacturing Opportunities in Monterrey

Mexico has always been a way for U.S. and other foreign manufacturers to save on costs while maintaining high-quality production. As the interest in nearshoring continues to grow, the availability of space and amenities in areas like Monterrey will become more valuable.

At IVEMSA, we can help you determine the best strategy to meet your business goals. Contact our team today to see how our shelter services can benefit you.

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