Mexico Shelter Services: Lower Costs and Minimize Risk

The majority of our clients choose to operate under a Mexico “shelter.” The shelter program is a unique way of doing business in Mexico that reduces risk and liability for foreign companies.

Seamless Manufacturing in Mexico

If you choose to manufacture goods under a shelter, you will operate under a legal Mexican entity owned by IVEMSA. This entity will be the one leasing your facility, hiring and paying your employees, and getting all the necessary permits and licenses. You will still be in charge of everything on the manufacturing side—you’ll be able to bring your own equipment in, import raw goods, and control all of your processes and procedures.

Operating under a shelter allows you to reap the benefits of manufacturing in Mexico without going through the complex and challenging process of setting up your own entity.

 

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Benefits of Mexico Shelter Services

Minimize Risk & Liability

For most companies, operating under a Mexico shelter is the safest way to do business. Your company technically won’t have a legal presence in Mexico, so should something go wrong, you are protected since you are not legally exposed to Mexico's authorities.

Reduce Learning Curve

With IVEMSA, you won’t have to figure out anything about manufacturing in Mexico on your own. As your consultant, we ensure you have the proper permits and comply with Mexican laws and regulations. We also help with tasks like researching and selecting a site for your facility or navigating international trade and customs compliance.

Reduce Costs

By operating under a shelter, you save on labor, infrastructure, permits and license fees. Many businesses save up to 50% on labor alone. You won’t have to spend as much on outside consulting and won’t need to hire HR, accounting, daily trade operations, payroll, recruiting and accounts payable.

Maintain Production Control

With IVEMSA handling all the administrative tasks in your Mexico shelter, you’ll get to focus your attention on manufacturing. You’ll have complete control over your processes and retain full intellectual property rights.

Quick Start-Up

If you choose our Mexico shelter services, you can launch production in just 3 to 4 months as opposed to setting up a new legal entity, which can take 6 to 7 months. We also have all administrative departments and managed services already in place.

Stay Nimble

IVEMSA’s Mexico shelter services also allow for flexibility and agility. If, after a trial period, you decide that manufacturing in Mexico isn’t right for you, it’s easy to stop production and pull out. You won’t have to “undo” a legal entity. On the other hand, if you need to scale up your production, our team is equipped to help you.

What Kind of Services Do You Need?

IVEMSA’s services cover everything you need to manufacture products in Mexico.

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Frequently Asked Questions About Mexico Shelter Services

Mexico shelter services offer specific benefits to U.S. companies that other countries don’t provide. But do they make sense for your operation? Here are answers to a few of the most frequently asked questions to help manufacturers decide how partnering with a shelter will work best for them.

When is the best time to contact a Mexico shelter company?

It’s beneficial for manufacturers to reach out to a Mexico shelter company as soon as they are open to exploring if manufacturing in Mexico could be a beneficial option for their manufacturing strategy. Many manufacturers don’t realize that a shelter company’s services include pre-operational support to guide the exploratory phase.  

 

This support includes local data and information regarding project cost analysis for site selection and labor, a comparison of different business models available, and expectations for everything related to legal, customs, labor, and taxes.  

 

These offerings are available to manufacturers to inform their decision-making and ensure they are following the most cost-effective and efficient production strategy.  

What does a shelter company offer?

In addition to pre-operational support, the core of what a Mexico shelter company offers is all services and resources necessary to streamline setup.  

 

This business model saves manufacturers time and costs for all administrative responsibilities, including but not limited to HR, taxes and accounting, payroll processing, and overall compliance for the operation. 

 

Additionally, a shelter partner offers local expertise and support that reduces the learning curve for manufacturers operating in a foreign country. It also reduces the risk and liability a manufacturer faces since they are not establishing their own entity. 

What should we expect from a shelter company?

There are several categories of support to consider that make the majority of manufacturers work with a shelter company when setting up and maintaining production in Mexico.

 

Manufacturers can expect ongoing shelter services implementation and management, as well as full control over production and processes, and complete ownership of all intellectual property rights.  

 

In addition, the startup time is much quicker, and there are greater cost savings when partnering with a Mexico shelter company versus operating as a standalone entity. 

What services are included in Mexico shelter manufacturing programs? 

Shelter manufacturing services include, but aren’t limited to:  

  • Legal and corporate infrastructure 
  • Human resources and labor management 
  • Customs, import/export, and trade compliance 
  • Accounting, tax, and financial administration 
  • Site selection and facility setup 
  • Operational and supply chain support 
  • Environmental and safety management 

Rather than hiring these departments individually, manufacturers benefit from having all of these managed services in one place. 

What percentage of clients operate under a shelter versus a standalone?

90% of manufacturers that partner with IVEMSA operate under the shelter umbrella. They find it’s the most optimal to get their production up and running quickly without being legally exposed.

Is the shelter option permanent or is there a way to transition in the future?

The shelter program is not a permanent solution but rather a way to help companies seamlessly transition to manufacturing in Mexico. One of the biggest benefits of working with a shelter is the flexibility of service options, so each strategy can be tailored to a company’s specific needs.

Typically, manufacturers take the first two or three years to invest and grow their operations before considering establishing a standalone entity. However, IVEMSA works collaboratively with companies to decide the best time to “graduate” from the shelter program, though the majority of clients maintain shelter services for the long term.

How long is IVEMSA’s partnership with operators?

We support our clients’ changing needs and adapt our services accordingly. As a result, our average client retention rate is 15 years. They rely on our well-established infrastructure to give them the industry connections, local knowledge, and flexibility to successfully facilitate their operations.

Is a shelter unique to Mexico?

Yes. Though not a new trend, the shelter has been a government-approved program for decades as a way to support business growth. It has been a go-to option for U.S. and other foreign companies due to its reliability, convenience, and cost savings.

The IMMEX program supports various manufacturing divisions, including plastics, aerospace, automotive, etc. Therefore, IVEMSA can continue adding companies under their shelter umbrella without compromising any current partnerships.

Are Mexico shelter services appropriate for companies expanding operations for the first time?

Yes. Due to the capabilities and responsibilities involved, shelter services provide a cost-effective way for companies new to manufacturing in Mexico. Working with a shelter provides a quick startup time with minimized risk and full production protection. This allows operators to focus fully on manufacturing processes while leaving the administrative duties in the hands of the shelter.

Will the manufacturing facility bear my company’s name?

Yes. When a company chooses to work under IVEMSA’s shelter umbrella, it maintains full production control and brand oversight. Therefore, the plant will uphold the company’s colors, logo, and any other branding. Furthermore, we don’t own real estate, so we can help you find the best building for your operation without bias.

How much control does my company have working under a shelter?

At IVEMSA, we gather detailed information from each manufacturing company and use it to customize the services to best fit their needs. We take on all administrative responsibilities, but all employees are trained per the company’s policies. And all equipment and materials remain in the company’s complete ownership. All control over people, processes, and production stay with the manufacturer.

How Is IVEMSA Different?

Since its inception, IVEMSA’s approach to helping U.S. manufacturers is to transition their operations to Mexico at the right time. This is established through:

Flexibility

We understand each company has unique requirements and therefore, tailor shelter services to support these needs accordingly. Unlike some shelter companies, we do not deliver a one-size-fits-all package or charge extra for customized demands. Instead, IVEMSA works around the specific needs of each client to support their production strategies and goals.

Local Expertise

As an industry leader, IVEMSA maintains a long history of success. For over 40 years, IVEMSA’s president, Sergio Tagliapietra has led efforts to provide better rules among local and federal governments. He is the current head of the National Maquiladora Association and maintains strong professional relationships and broad networks to the benefit of clients. Overall, IVEMSA is focused on facilitating connections to facilities, suppliers, and vendors, and championing manufacturing growth among everyone we work with.

Trust and Transparency

Creating trust and maintaining transparency is paramount. Therefore, we charge one fee, eliminating hidden or unforeseen costs often associated with other shelter service providers. It’s simple, we do what’s best for the client because when they succeed, so do we.

Reduce costs.
Maintain control.
Expand with confidence.

Contact us today and see how we can help you take advantage of all the benefits of manufacturing in Mexico - without the hassle.

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