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Mexican Shelter Companies: Service Providers To Near Shore Manufacturers

By Expert Author: Alan Russell

As companies compete and vie for market share in an increasingly global economy, many are realizing that a solution has been right under their noses for at least three decades.
Mexican shelter companies can provide a well-trained, cost-efficient, highly qualified, and multi-generational pool of vibrant manufacturing talent for nearly any industry seeking to set up shop south of the border. Additionally, as a NAFTA member, Mexico provides manufacturers the added benefit of no duty fees or high protective tariffs.

But what really makes Mexico attractive to foreign investment are the Mexican shelter companies that provide manufacturers with outsourced near shore support services to simplify the transition and facilitate the start-up and ongoing operation of production facilities in Mexico’s maquiladora industry. Foreign companies don’t have to sort through the myriad of issues of dealing with a different workforce, and the laws related to it, tax structure, custom and logistics details , supply chain issues, etc. Instead, Mexican shelter companies do all the heavy lifting for them, providing the manufacturing advantage firms look for when under pressure to aggressively identify and implement manufacturing cost-reduction measures and quality improvement strategies.

In short, the primary benefit of working with Mexican shelter companies is risk mitigation. The structure of shelter companies in Mexico is such that clients have no direct dealings with regulatory and tax agencies. Payroll, hiring, facility construction, and on-site management are hassles companies forego by partnering with such companies already entrenched and well-versed in the local economy and its rules and regulations for manufacturers. This frees up companies to focus solely on their core manufacturing functions and product quality goals.

Some of the myriad of benefits available through shelter companies include:

• Secure ,safe and modern production sites and buildings

• Fast Mexico manufacturing start-up

• Experienced Mexican labor recruiting

• Reduced border crossing costs, delays and risk

• Experienced and connected recruiting for manufacturing management talent

• Effective labor union relations and negotiating

• Ensured market wages and benefits

• No responsibility for Mexico income tax compliance

• Assurance of compliance with Mexican Customs

• Expert logistics support & coordination

• Assurance of environmental regulatory compliance

• Access to quality checked Mexican sources for MRO items and services

• Flexibility for building location, size, and features

• Expert response to building maintenance and utilities issues

• Mexican government reporting is taken care of by Mexican shelter company professionals

Over the last several years, Mexico has again become the most favorable low-cost country for North American manufacturers to make their products. Mexican shelter companies can make taking advantage of the near shore location benefits offered by Mexico an relatively easy proposition.

K. Alan Russell, President and C.E.O. of the Tecma Group of Companies.Mexico shelter companies, Manufacturing in Mexico,Mexico industries

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