How Easy Is It to Move Manufacturing to Mexico?06.28.21
There are always challenges involved when setting up foreign operations of any kind, due to permitting and legal ramifications, cultural differences, and potential language barriers. However, manufacturing to Mexico is simplified through the help of a shelter service partner. A shelter program allows U.S. and other foreign manufacturers to operate under an already established legal entity, which minimizes risk and liability.
There are several ways a shelter company makes moving manufacturing to Mexico easier versus setting up a standalone entity without assistance. A few of the factors that help create a seamless experience include:
- Lower learning curve
- Quicker permit timelines and startup
- Built-in security and stability
Finding the right shelter partner will provide you with the experience and expertise necessary to get your operation up and running efficiently and as easily as possible.
Lower Learning Curve
Figuring out the details and differences of manufacturing in Mexico can be overwhelming. It starts with site selection to secure the space, utilities, and vendors necessary to start an operation. It also requires understanding labor and tax laws, customs compliance, and ensuring the proper permits and certifications are in place. Fortunately, a shelter company takes care of all these administrative responsibilities while you focus on production.
Additionally, all administrative roles are included under a shelter versus paying individual costs when hiring all the different roles for operating as a standalone. This helps to save thousands of dollars per month, as well as limits the inconvenience and frustration that comes with learning the ins and outs of operating in a foreign country.
Quicker Permit Timelines and Startup
Another advantage of partnering with a shelter company is it makes it quicker to launch production compared to setting up a new legal entity. Since a shelter already has all managed services in one place and can handle several responsibilities at once, it’s quicker to apply and be approved for permits, recruit and hire employees, and temporarily import the materials and equipment necessary to get started.
The process is made easier due to the experience and expertise of the shelter and connections they’ve built that helps move the timeline along. Manufacturing to Mexico with a shelter company has a startup timeline of three to four months versus six to seven months or longer when you decide to launch production on your own.
Read more: Nearshoring Guide for U.S. Companies.
Built-in Security and Stability
Finally, there’s the built-in security and stability of manufacturing to Mexico that instills a feeling of certainty for those who want to expand or move their operations altogether. Manufacturers from all sectors have benefited from operating in Mexico for years. This is due to factors including but not limited to the shelter program, reduced labor and infrastructure costs, and close proximity to the U.S. Also, when compared to manufacturing in China, there is a quicker time-to-market for products and greater quality control.
Every manufacturing company is different and has their own unique needs and goals as they decide to expand their operations. At IVEMSA, we’re here to alleviate as much of the burden as possible and make moving manufacturing to Mexico a seamless experience.