The Panasonic Industrial Devices division, long established in the United States, wanted to expand but was concerned about costs, and therefore began research of locations outside of the country. Mexico became the logical choice as it is a strategic location to serve the U.S. market, as well as being cost competitive. Due diligence also uncovered that Mexico provides a good business environment that is culturally compatible, and has both the skilled and unskilled labor force the company requires for operations.
An extensive competitive comparison was conducted among a number of shelter companies countrywide throughout Mexico. Although many offered similar services, what stood out for Panasonic was the professionalism, commitment, and experience of the IVEMSA group.
The original intention was to start the facility with IVEMSA as an “incubator” and eventually go completely private. Once the facility was established, Panasonic slowly started taking over functional areas beginning with purchasing and moving on to accounting and human resources. When it got to taking the customs function over, they decided to keep IVEMSA on, and do so to this day. As the division president Jose Fletes says, “The IVEMSA group are the experts and what we have is a win-win situation. It just makes more sense to let them handle the import/export side of the business so we can focus on core competencies. IVEMSA isn’t just a business partner, they’re part of our team.”