How Shelter Services Ease the Transition of Nearshoring to Mexico

Shelter services in Mexico offer U.S. and other foreign manufacturers multiple benefits when launching production for the first time. From reducing legal risk and production costs to leveraging technology and local expertise, partnering with a shelter company has become one of the leading strategies for global leaders.

Mexico shelter services include all of the administrative responsibilities necessary to start production. This includes HR, recruiting, and payroll; legal, tax, and trade compliance, as well as site selection permitting. However, the underlying value is working with a team who is well-equipped and experienced in helping foreign operators get up and running quickly and efficiently.

U.S. and other foreign manufacturers face unique challenges when operating in Mexico, and partnering with a shelter company can help ease the transition in several ways, such as:

Bridging Cultural Differences

Nearshoring to Mexico may involve language barriers and cultural differences that a shelter company can help bridge. For instance, Mexico recognizes a 48-hour work week versus 40 hours per week in the U.S. Also, there are certain holidays, benefits, and severance regulations that must be followed which are specific to Mexico. Moreover, to establish camaraderie and collaboration, it’s essential to have effective communication and cross-cultural training in place.

Navigating Government Regulations

Labor laws, tax and environmental regulations, and trade compliance in Mexico are ever-changing and may differ from what U.S. and other foreign manufacturers are familiar with in their home countries. Part of a full suite of shelter services in Mexico includes ensuring compliance is met and risks are mitigated as they pertain to regulatory challenges.

Spearheading Recruiting and Retention

As in the U.S., proactive employee recruiting and retention is a crucial factor. Though there is more industrial worker availability in Mexico than the U.S., the workforce is competitive. A shelter company has networking insight, tools, and resources and can implement best practices needed to recruit and retain the best workers.

Delivering a Solid Infrastructure and Supply Chain

Many manufacturers are relocating operations from China and nearshoring to Mexico due to the solid infrastructure in place. With multiple transportation routes and reliable supply chain capabilities, manufacturers also benefit from the cost savings and quicker delivery of being closer to their target audience.

Finding the Right Shelter Partner

It’s important for manufacturers to fully evaluate their unique needs, processes, and goals. From there, they can explore opportunities with a shelter company that provide customized, flexible shelter services and can easily adapt as the industry changes.

IVEMSA helps to create a seamless transition when nearshoring in Mexico through its suite of shelter services and by offering:

Flexible solutions

Mexico shelter services can be customized to meet your specific needs and goals, scaling up or down as needed. Each company has unique demands, and we work collaboratively to implement the best strategies.

Transparent pricing and communication
There are no hidden or surprise fees, as is often the case with other shelter companies. Plus, manufacturers are free to transition from the shelter program to a standalone entity at any time.

Reputation of success
IVEMSA upholds a long history of success and an average customer retention rate of 15 years. With excellent government connections and expansive networks and resources, we utilize our experience and expertise to provide long-term value and cost-effective manufacturing solutions.

Find out how our shelter services and personalized approach can benefit your company. Contact our team today.