How to Evaluate a Shelter Services Partner in Mexico

Key Takeaways:

• Shelter services manufacturing is the preferred business model for most companies setting up production in Mexico.
• Not all shelter companies are the same, even if the services themselves seem identical.
• To secure a strong partnership, manufacturers should look beyond the bullet points and dive deeper into a shelter services company’s reputation, flexibility, and transparency.

The option of working with a shelter services company is unique to Mexico. It offers manufacturers local expertise, experience, and knowledge, all of which are invaluable when launching production in a foreign country.

However, performing due diligence is important when choosing a partner. Though most shelter companies offer the same or similar services, there are details that differentiate one from another.

To evaluate what makes for a good fit, here are a few factors to keep in mind:

Decision-Making

Deciding who’s in charge of which tasks should be clear from the start. Typically, the manufacturer remains fully in charge of processes and maintains complete proprietary ownership while a shelter partner handles all administrative responsibilities.

Get a breakdown of manufacturing in Mexico with a shelter company versus without.

Services Flexibility

Determine what a shelter services company offers in terms of adjusting services. Every manufacturer has different milestones and timelines they must meet.

Make sure your shelter partner can build services around what’s needed rather than become locked into a rigid structure that may not align with specific production goals.

Contract Transparency

The details make a difference when engaging in a shelter company partnership. Manufacturers should maintain full control of when to scale production and if and when they want to move into a standalone business.

Some shelter companies make it more difficult by interconnecting industrial leases with their shelter services. Consider the process of what it takes to eventually graduate from the shelter program and how the shelter company supports that transition.

Because of its dedication to service excellence, IVEMSA maintains an average 15-year client retention rate and offers transparency and customized services for those that decide to create an independent entity.

Documented Compliance

Ask for credentials from any shelter services company you intend to work with. Ensure they have documented proof of all permits required and research their industry experience.

Manufacturing in Mexico is complex, and there are constantly changing rules and regulations applied to production. Having confidence in the expertise of your shelter partner is crucial.

Industry Reputation

In addition to confirming credentials, ask questions about how the shelter partner operates. For example, is it easy to customize services to meet needs, or is there a one-size-fits-all approach applied?

Does the shelter company have a proven history of success?

What are the company’s core values?

This type of information should be readily available for potential clients to help them make a decision.

What Do Shelter Services Include?

Working with a shelter services company is a cost-saving business model and helps reduce risk for U.S. manufacturers operating in Mexico. Services cover these key areas:

• Trade Compliance / Customs assistance
• Human resources and talent recruiting
• Payroll processing
• Tax and Accounting
• Government and legal compliance
• Site selection
• Value-added services

To get a fuller picture of what shelter services entail and the cost differences between business models, read Defining Mexico Shelter Manufacturing.

What Sets IVEMSA Apart

IVEMSA invests in doing what’s best for each manufacturer, based on production needs and goals. The focus is on:

• Flexible solutions
• No surprise fees
• Established networks
• Trust and transparency

Manufacturers can request a site selection analysis and labor cost analysis to gain an overview of what working with the shelter company would entail for their operational setup.

Knowing this information up front allows business leaders to make an informed decision to comfortably move forward.

Set up a consultation with one of our experts to see if IVEMSA is the right shelter services company for you.