Contract Manufacturing in Mexico

Contract Manufacturing

Contract manufacturing in Mexico may be a good option for companies that are looking for predictable, consistent runs of a particular product or products. They may be in the earlier stages of business growth, and demand for their product is greater than their current production capacity.

If you're contract manufacturing, you are essentially outsourcing your entire manufacturing operations. You won't be responsible for:

  • Purchasing, building, or bringing equipment to Mexico
  • Sourcing raw materials
  • Training employees

Depending on the contractor you work with, you may not need to assume any legal risk or worry about trade compliance. You'll also benefit from tax and trade incentives when importing the finished goods to the U.S.

However, when outsourcing manufacturing to a contractor, you give up control over production and quality assurance. Companies that want to maintain more control over the manufacturing process without having to set up as a legal business entity in Mexico have another option: the Mexico shelter program.

Shelter Program

Mexico's shelter program is ideal for companies that want the cost benefits of manufacturing in Mexico, but want to retain control over their operations. If you're making or assembling more complex products, shelter manufacturing may be the better option. With a shelter, you'll relocate your existing operations to Mexico, but a shelter service provider like IVEMSA will handle all the set-up and administrative responsibilities.

With a shelter, you'll control:

  • Your manufacturing operations
  • Training employees
  • Sourcing raw materials

But you won't have to worry about:

  • Taxes and accounting
  • Recruiting and hiring employees
  • Payroll
  • Meeting government regulations for labor, health and safety, etc.
  • Trade compliance and customs

For many foreign businesses, the shelter program is a win-win situation. You get the benefits of lower labor costs and favorable trade agreements without assuming any legal risk or liability in Mexico.

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Quick Guide to Setting Up a Business in Mexico

Get checklists to guide you through the process of setting up a shelter or stand-alone entity in Mexico, covering everything from the initial set-up to finding a site to preparing for trade compliance. Our Quick Guide will give you an idea of the differences between setting up a shelter vs. a stand-alone entity.

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Reduce costs.
Retain quality.
Gain peace of mind.

Contact us today and see how we can help you take advantage of all the benefits of manufacturing in Mexico - without the hassle.