Establish Structural Setup
Decide whether operating under a shelter or establishing a standalone entity is the most effective strategy.
- When working with a shelter company, all administrative responsibilities are handled, allowing manufacturers to focus solely on production. A plant manager, selected by the client, oversees all departments and ensures everything is running according to plan in order to meet the desired timeline (which is typically three to four months after site selection has been completed).
- When operating without the support of a shelter company, all tasks fall to the manufacturer, leaving greater exposure to risk and liability and higher overhead costs.
| Working with IVEMSA | Working Alone | |
| Management Team | No need to hire personnel for administrative functions | Hire full administrative team |
| IT Administrative Platform | Included under IVEMSA Shelter Service | Licenses must be purchased and adapted to your MX operation |
| Consulting Advising | All Administrative consulting support included | Need to hire external advisors with different specialties |
| Supervision | Less training & supervision from HQ | Will significantly increase the need for supervision from HQ |
| Risk & Liability | 45+ Years of experience in setting up new operations in Mexico | Longer learning curve higher risk |
| Focus | Your team focus on manufacturing, quality and production | Managers will be distracted with daily administrative issues |
| Timing | Established team expert in manufacturing start-ups, typically 3 months after lease is executed | New team with limited experience on start-ups typically 6 to 7 months |
| Cost | Shelter cost is estimated to cost you 20% to 30% less vs operating alone | Higher overhead cost with less experience |
Determine Division of Responsibilities
Manufacturing, sales, and customer services remain the responsibilities of the manufacturing company, while all other administrative tasks are handled by the shelter company.
One of the reasons why working with a shelter company initiates a quicker setup is that there are many administrative services occurring at the same time to prepare for the launch of production.
The chart below illustrates the departments and services that fall under the responsibility of the shelter partner and which are maintained by the manufacturer. All equipment, materials, and products remain in ownership by the manufacturer, as well as intellectual property, processes, and other proprietary materials.
IVEMSA Business Model
Administration
Resources
Service
Management
Direct Mat
Hiring
Export
Matters
Payable & Rec.
Schedule Milestones
While manufacturers have the option of establishing a standalone entity, the majority opt to work with a shelter company due to the cost savings, expertise, and efficiency provided.
Once a manufacturer has decided to partner with a shelter company, key tasks include:
START UP PRE-OPERATIVE PHASE
MAIN MILESTONES
Compare Value IVEMSA Provides
In addition to the full suite of shelter services, IVEMSA offers unique value, including:
- Established Networks – IVEMSA’s strong connections with federal, state, and local governments, as well as recruiting networks, vendors, and suppliers, provide manufacturers new to Mexico access and opportunities to get operations up and running quickly.
- Flexible Solutions – As needs fluctuate, Mexico shelter manufacturing can be scaled up or down to achieve goals without causing a major disruption to production.
- Full Transparency – IVEMSA delivers a clear look at costs for shelter services without any surprise fees for reports or audits. Also, manufacturers that eventually decide to graduate from the shelter program into their own entity will not have to pay a transition fee.
- Business Reputation – By offering flexible solutions and outstanding service for over four decades, IVEMSA maintains a 15-year average customer retention rate.
Whether partnering with a shelter company as a standalone entity or operating under the full protections and accessibility of a shared shelter, the services are the same, though the timeline differs considerably.
| Available Models: | Shared Shelter | Standalone Entity |
|---|---|---|
| Entity incorporation | Shelter Entity – Ready | 2 months |
| Sign shelter, professional service or lease | Month 1 | Month 3 |
| Utilities and setup administrative procedures | Month 1 or 2 | Month 3 or 4 |
| IMMEX license extension or new application | Month 2 | Month 3 or 4 |
| Building improvements | Month 2 or 3 | Month 4 or 5 |
| IMMEX program approval | Month 3 or 4 | Month 6 or 7 |
| Importation of equipment and raw materials | Month 3 or 4 | Month 7 or 8 |
| Initial recruiting activities | Month 3 or 4 | Month 7 or 8 |
| Start manufacturing activities | Month 4 | Month 9 |
Questions about Mexico Shelter Manufacturing?
There are several moving parts to launching an operation in Mexico. Get help from local experts who have the experience to streamline your setup and achieve your production goals.
Schedule a consultation with one of our experts to learn more about the advantages of working with a shelter company and if it’s the best strategy for your business.