Comparing Different Mexico Shelter Companies: Q&A

Article Overview: It’s important to perform due diligence when choosing a Mexico shelter manufacturing partner. In addition to knowing which services are included, ask for clarification and specifics regarding timelines, cost structures, and company reputation.

When manufacturing in Mexico, most companies operate under a shelter business model to expedite setup time and save on costs. However, not every shelter company operates the same.

When deciding which one to work with, here are a few questions to determine the best fit.

What services are included in Mexico shelter manufacturing programs?

In general, shelter services include all administrative tasks necessary for production, including taxes and accounting, HR and payroll, and customs compliance.

For comparison, ask for a list of specific services offered and what each department includes. It should be clear what the shelter company is responsible for and what the manufacturer is responsible for, so there is understanding and accountability on both sides.

What is the cost structure?

The cost structure of working with a shelter company includes pricing as per the specifics of the project, as well as economies of scale, additional services, and benefits.

Within the shelter model, certain resources are shared across clients in specialized areas such as: Trade Compliance, Payroll, Human Resources, Accounting, and other support departments.

However, the level of support provided can vary significantly among shelter providers. For example, it is not uncommon for some shelter companies to assign a single HR representative to support 300+ employees across multiple client operations.

In our experience, this often results in the individual wearing too many hats and being unable to provide the level of attention and responsiveness that a manufacturing operation requires.

At IVEMSA, our service model is designed around providing a higher level of support and service quality to our clients. As an example, for an operation with approximately 100 employees, we would typically assign a dedicated HR representative focused on supporting that specific operation.

This structure allows for greater responsiveness, stronger employee support, improved communication, and a much higher level of service overall.

We believe that this enhanced support model creates a meaningful difference in the day-to-day experience of our clients and contributes to the successful operation of their manufacturing facilities in Mexico.

Therefore, it’s valuable to ask about the team supporting you to ensure you receive quality attention in addition to a cost-competitive structure.

Is there transparency in initial interactions?

IVEMSA is transparent in cost and service models, as well as letting manufacturers know that operating under a shelter doesn’t have to be a permanent solution.

It’s a beneficial entry model for launching production in Mexico. However, manufacturers always have the option to transition to a standalone entity.

While IVEMSA streamlines this process, other shelter companies are vague about what’s included in service and make it more difficult to exit the shelter model.

What happens if I want to work as a standalone operator in the future?

Many manufacturers keep shelter services in at least one department, such as customs or payroll, even after they become their own entity.

Although IVEMSA offers this with a standard timeline of 8-9 months, not every shelter company may offer the same. There should be clarity of options available during setup, once production is launched, and if and when the time comes to establish a standalone operation.

Is there proof of IMMEX certification?

IMMEX program approval and VAT certification are essential to manufacturing in Mexico. While a shelter company has this type of permitting in place, there are some that have had their IMMEX programs suspended or canceled indefinitely due to bad practices or non-compliance.

If not readily provided, ask for documented proof of the current IMMEX certification that will be used for your operation, as well as evidence that there hasn’t been any previous disruption or mismanagement.

Making the Decision to Work with IVEMSA

IVEMSA has a longstanding reputation for providing excellent service and flexible solutions for 40+ years and maintaining an average 15-year client retention.

We are here to answer your questions about Mexico shelter manufacturing, and our recommendations are based on what’s best for your production goals.

If you’re considering working with a shelter company, we can provide a cost analysis to get you started with the selection process.

Contact our team today.