Only a day after the new USMCA went into effect, the Canadian company Bombardier Recreational Products (BRP) was the first to announce that it will be investing an estimated US$136 million dollars to expand its off-road vehicle production capacity in Ciudad Juárez. BRP has a long history of hedging its bets here—both due to the country’s human talent, as well as the myriad of other benefits it offers for companies looking for options to set up nearshore or offshore manufacturing in Mexico.

Over the more than 75 years since its BRP was founded, it has always shown a commitment to one of its core values of innovation through both investments in R&D and its willingness to take the road less travelled—both literally and metaphorically, making it a world leader in the manufacture of off-road vehicles, snowmobiles, watercraft, and propulsion systems and engines for recreational aircraft. Their brands include Ski-Doo and Lynx snowmobiles, Sea Doo jet skis, Can-Am all-terrain vehicles, as well as Evinrude and Rotax marine propulsion systems and entire line of replacement parts, clothing and accessories.

Reflecting this commitment to innovation, BRP has a long history of international expansion, with plants in Mexico, as well as Austria, Finland and the US. It first established operations in Mexico in Ciudad Juárez in 2001, opened a second plant in Querétaro in 2013, and a third in 2016, also in Ciudad Juárez. The most recent expansion is to meet the recent increasing demand for vehicles known as Can-Am side-by-side (SSV), with sales of these vehicles increasing more than 35% in May of 2020 compared to 2019, despite the pandemic.

Offshore manufacturing in Mexico

According to BRP’s President and CEO, José Boisjoli, “This new plant, combined with the company’s two off-road manufacturing facilities in Ciudad Juárez, will create positive operational synergies and efficiencies” that will aid the company in meeting its goal of reaching 30% market share. The planned facility, for which construction is scheduled to begin in the coming months and should be completed by the end of 2021, will result in the creation of up to 1,000 permanent jobs and a total capital expenditure for 2021 between $202 to $220 million dollars.

This step is clear proof that more international companies will continue to look at both industrial real estate Mexico and Mexico manufacturing, as they search for ways to gain market share and become more competitive, cost-effective and set up operations in ways that allow them to have more diverse, flexible and dynamic supply chains. With the entering into effect of the USMCA, as well as additional programs in Mexico aimed at attracting foreign investment, including the IMMEX program, it is a good idea to look into how using shelter services in Mexico can help your company grow and succeed in these changing times.

Shelter services in Mexico


By Isaías Rivera | Mkt & Business Development Manager | American Industries Group®
Did you find this content interesting? Sign up for our monthly newsletter to receive more articles and infographics.

Subscribe

If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:

US toll-free: +1 (877) 698 3905

CAN toll-free: +1 (844) 422 4922

start@americanindustriesgroup.com
Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://www.americanindustriesgroup.com/jobs/




Related posts

November 26, 2021
Legal Frameworks
Legal Frameworks for Operating in Mexico under a Shelter program: Which Option is Right for Your Company?
Foreign companies in the aerospace, automotive, electronic, medical, home appliance, furniture, and any other industry, can establish operations under the Shelter program using one of the […]
November 17, 2021
Industrial Real Estate Services
What Benefits Could Adopting the International Financial Reporting Standards (IFRS) Have for the Real Estate Sector?
A transition towards the IFRS implies more than just reorganizing account catalogs and technical accounting and financial information matters. Their adoption in Mexico’s real estate sector […]
November 12, 2021
Shelter Services in Mexico
What Industry has Learned from the Global Chip Shortage
It is increasingly vital that companies understand and plan for many factors that extend far beyond the walls of their company as part of their logistics […]
November 9, 2021
Story of a Chairman
Story of a Chairman Part III Breaking Paradigms
What was it about Chihuahua that made a world-renowned company like Honeywell decide to set up operations there?  Without a doubt, its hardworking people in management […]
October 26, 2021
Start Up Business in Mexico
Cost Model: Key Tool for International Companies Wanting to Start Up Business in Mexico
When considering starting up or relocating manufacturing operations to Mexico, one of the first steps and most valuable tools in the decision-making process is receiving a […]
October 20, 2021
Invest in Mexico
LEED Certification: Leadership in Energy and Sustainable Design
One of the biggest concerns of our modern times is the environmental pollution resulting from human activities, including construction and industry. Emissions related to building construction […]