A key Allied Tool & Die customer, Honeywell, had operations in Mexico and expressed a desire to tighten up their supply chain and reduce costs. When preliminary results showed that operating costs in Mexico could be lower, and delivery to the customer expedited, Allied then explored a number of cities in the country that could potentially support their manufacturing needs. With safety a major concern, Allied ultimately settled on Mexicali as the most desirable base of operations. “Mexicali is close to both our Phoenix headquarters and our client’s Mexican operations,” stated Bill Jordan, Shop Manager, Mexicali of Allied Tool & Die. “As well, the area has a strong labor force and a good safety record. Noticeable in our research was the minimal presence of the military; the opposite of what we saw in other cities that made them a cause for concern.”
Once Allied selected Mexicali, they contacted local governmental agencies for assistance in identifying potential Mexican service providers. They explored the possibility of operating as part of a shelter company or establishing their own Mexican entity, and got quotes from four different groups, ultimately selecting IVEMSA. “While we received cheaper bids, IVEMSA was the most professional and thorough,” said Jordan. “They provided an in-depth analysis and made sure that we were aware of all the potential issues, while openly sharing their costs. This was in direct contrast to the other companies we talked to who offered us pre-packaged solutions with a “take it or leave it” attitude.”
Since the establishment of their Mexican operations, Allied has reduced costs and better satisfied their client’s supply chain needs. They have also found it easy to do business in Mexico with IVEMSA support. “IVEMSA consistently goes above and beyond to take care of us,” Jordan reports. “When the fire marshal came to inspect our facility I called IVEMSA and they took over. A week later the fire marshal came back and sat down with a team of three people from IVEMSA who produced all of the necessary paperwork and handled the inspection, which we passed with flying colors. All I had to do was shake hands.”