Previously Formglas had operations in China and became concerned about both the distance from the headquarters and the rising Chinese labor costs. After researching Mexico, the company discovered that beyond saving money there are many additional benefits. As John Chettleburgh, Formglas President and CEO states, “It is incomprehensible why a North American manufacturer would not first turn to Mexico for establishing a location abroad. The promise of Asia is often overstated and misunderstood, and the promise of economic advantage is largely rooted in historical perceptions and not based on current or future realities.”
During the due diligence performed by Formglas, company representatives reached out to over 20 potential Mexican service providers throughout the country. Having identified approximately 10 of those companies that stood out, they then went through a more rigorous vetting process, including an RFP. Out of that, IVEMSA emerged on top with Formglas identifying them as the best fit due to their business model, history, people, approach and culture. As Chettleburgh says, “From the beginning they found the best candidates for the job – people who are still with me today.”
Since the establishment of their Mexican operations, Formglas has met their goals and more: