What Mexico Shelter Services Do and Don’t Cover
12.14.23Working with a Mexico shelter company has proven to be an invaluable advantage for U.S. and other foreign manufacturers setting up operations in Mexicali, Tijuana, Monterrey, or any other of the main industrial areas designated throughout the country.
However, it’s important to understand what is and isn’t covered regarding Mexico shelter services, as each shelter company may differ in what they offer. When partnering with IVEMSA, you can rely on transparency and upfront communication to ensure expectations are aligned prior to and during the entire process.
To get a general idea of what Mexico shelter services do and don’t cover, here’s a brief overview.
Mexico Shelter Services Cover All Administrative Functions
A shelter company provides the manpower for all administrative departments so businesses don’t have to add these costs to their operations. These include:
● Traffic and Customs Department
● HR Department
● Talent Recruiting and Retention
● Accounting and Tax Department
● External Trade and Labor Compliance Consulting
● Trade Compliance, HR Management, and Accounting and Payroll Software
Assistance begins in the early stages to evaluate leasing options, building insurance, and all permits and certifications needed to launch production. Also, without the help of a shelter, labor and software costs could add up to as much as $10,000 in additional expenses or more per month.
A Mexico shelter company will also provide guidance regarding competitive employee salaries and business park recommendations based on information provided by each company. Yet, no decisions are made without client approval, and all factors regarding production, such as product design, quality, and ownership are left solely to the manufacturer.
External Expenses Are Not Included as Part of Mexico Shelter Services
A shelter company is not a manufacturer. Rather, a shelter is the legal entity in Mexico that allows U.S. and other foreign manufacturers to operate in a way that reduces risk and liability. By enlisting the help of Mexico shelter services, there is comprehensive support from the various departments, which allows manufacturers to focus solely on production. Although, there are various scenarios and expenses in which a shelter company is not involved.
For example, legal consulting is often included as an extended part of a HR department. Legal disputes generated by decisions made by the client will be handled by the shelter company, but the cost must be covered by the client. And though shelter services cover all administrative costs necessary to launch production, paying for manufacturer-generated expenses like utilities, taxes, and employee salaries are not part of the agreement. All expenses generated by the client’s operation are handled as a pass-through cost.
Also, standard reporting is often included as part of shelter services. However, this doesn’t include the entirety of all dates or details a business may want. In general, if there is something needed that is outside of the original scope, IVEMSA can provide a quote for what the additional services and expenses would be.
Identifying the Differences Between Shelters
In addition to making the decision of whether or not to partner with a shelter company, knowing the differences between them is important as well. For instance, some shelters may already own real estate and require clients to use their buildings and shelter services. This could create complications if a company decides to leave the shelter program because they may be required to leave the building as well.
Meanwhile, IVEMSA provides more flexibility and allows manufacturers to choose their own buildings and set terms regarding salaries, benefits, etc. Thanks to a straightforward approach, extensive support, and over 40 years of experience in the industry, business leaders feel confident partnering with a shelter company like IVEMSA.