Making the Move to Mexico in 2024? Here’s Why Shelter Services Are Important


Transitioning to manufacturing in Mexico is made easier with the support of shelter services. A Mexico shelter company provides the knowledge, experience, technology, and resources to get U.S. and other foreign operators up and running in as little as three to four months.Reasons why shelter services are important in 2024.


The time and money saved by working with a shelter has an immediate payoff with long-term success. But to help determine if this option is the best route for your goals, here is a closer look at what a Mexico business shelter provides.


Immediate Access to Mexico Manufacturing Benefits

Operators familiar with foreign production may feel comfortable when making the move to Mexico. However, Mexico manufacturing is notably different from how other countries operate and has specific benefits that makes partnering with a shelter services company invaluable.


For instance, the IMMEX program is unique to Mexico. It offers favorable tax benefits to U.S. and other foreign industrial companies that are in compliance with the program’s requirements. Factors include:


● Length of stay
● Sales commitments
● Submission of annual reports


Once IMMEX-approved, the maquiladora is exempt from the 16% value-added tax applied to all temporarily imported goods, materials, and equipment associated with production. Yet, the application and approval process can take weeks, if not months, to be finalized. With a Mexico business shelter, manufacturers have this tax advantage from day one.


Reduced Costs and Quicker Timelines

Though some may decide to operate as a standalone entity, partnering with a Mexico shelter company also saves on costs for everything from leases to labor, and more.


Also, the timeline to launch is reduced nearly in half. Setting up a standalone entity takes six to seven months, compared to the three to four it takes with a shelter. With manufacturers being tasked with getting products to market faster, any areas where timelines can be trimmed without affecting quality is a game-changer for growth.


Flexibility of Services for Easy Adaptability

Not everyone is the right fit for the shelter model, which is why having access to the information early on can support better decisions. Therefore, even foreign manufacturers in the discovery phase can benefit from what a Mexico business shelter provides.


And, once an operator decides to move forward with the shelter option, it’s easy to customize services to scale up or stop them altogether. This provides the agility and freedom needed to make changes to reach their goals.


Collaboration with a Built-In Team of Experts

Operating in Mexico also requires reporting to several different government departments in order to comply with federal and local laws. A shelter provider has a built-in team of experts to ensure foreign operators are compliant.


As part of a full scope of shelter services, they maintain all permits and certifications necessary to do business in Mexico; plus, the personnel and software to track and implement all administrative functions to launch production.


Also, in 2024, real estate continues to be a challenge in terms of building competition. Mexico is a landlord’s market, which means they can be selective about who is rewarded a lease. Similarly, employees are choosy about employers and will commit to the one with the most attractive compensation package.


Therefore, having a local team of experts to help with securing facilities and labor that will help a project be successful is important now more than ever. Over 90% of manufacturers that partner with IVEMSA choose the shelter route due to the benefits it provides. Find out how our services can be tailored to fit your specific needs.


Contact our shelter services team today.

Get on the List

Stay informed on the latest news and analysis on manufacturing in Mexico by subscribing to our monthly newsletter.

  • Hidden