Published on August 5th, 2020 | by Sumit Bhowal0
Why near shore companies should invest in shelter manufacturing services in Mexico
You might be wondering how a shelter manufacturing service provider can be of assistance to you if you are a foreign company that are looking into starting a manufacturing business in Mexico.
Sheltering services can proof to be invaluable to succeeding companies in Mexico
Tacna sheltering services can provide succeeding companies in Mexico with a pool of highly qualified, affordable, well-trained, and multi-generational manufacturing employees for almost any industry that is looking to start a business south of the border. Besides that, as a NAFTA member, the country of Mexico offers manufacturers with an additional advantage of not paying any duty fees or expensive protection tariffs. What makes Mexico so desirable for foreign investment are the shelter agencies that assist manufacturers with outsourcing near-shore support to simplify the process and facilitating the start-up as well as ongoing operation of manufacturing facilities in the maquiladora industry in Mexico. This way, foreign agencies do not have the burden of dealing with the myriad of issues associated with a business, including employing a workforce, the applicable laws, custom and logistical details, tax structure, supply chain issues, and so forth. The Mexican sheltering service provider do the heavy lifting while identifying and incorporating manufacturing cost reductions and quality improvement plans where necessary. The main advantage of working alongside a Mexican shelter company is the risk mitigation. The framework of shelter companies is of such a nature that clients do not directly liaise with regulatory and tax companies. Some of the hassles that agencies forego by dealing with a sheltering service provider include:
- Hiring employees
- Managing Mexica payroll and benefits
- Facility construction
- On-site management
The Mexican sheltering services are familiar with the local economy and the associated rules and regulations for industrialists. This means the manufacturing company can focus on product quality aims and core manufacturing tasks instead.
How to you choose the right shelter company?
It is crucial to partner with the right shelter company to enjoy the benefits mentioned above. There are six kinds of services on offer from shelter agencies in Mexico:
- Full-service shelter agencies – offer the most comprehensive list of services, from assistance with starting up, to accounting, HR, and estate leasing assistance.
- Full shelter services – offer administrative assistance with starting up, but do not offer help with real estate matters.
- Mexico shelter agency for start-ups assistance – foreign manufacturing entities start operating without the foreign manufacturer setting up its individual in-house support team.
- Contract manufacturing with certain shelter services – this option is available with subcontracted employees who support the company when needed only.
- Real-estate agencies that provide shelter services – such a service emphasize on rental and sale of industrial real estate in Mexico but provide some level of admin support.
- Pick and choose shelter service providers – permit manufacturing agencies to choose service offerings that meet their particular requirements.
Mexico has gained popularity as an affordable country over the years for manufacturers to produce their products. Mexican shelter service providers prove to be invaluable to such companies and can make the manufacturing process for foreign companies a lot more straightforward.