When Jim Scott, President of Ground Effects Ltd., first shared his plan to start up operations in Mexico to provide his spray-on bed liner services for General Motor trucks and serve a growing Mexican client base, not everyone was optimistic about the idea. People said it would be too complicated and that he would be bogged down in a sea of endless customs, importing, and government reporting paperwork and requirements. With a truckload of questions about what doing business in a foreign company would entail, Jim decided to sign up for a seminar offered by American Industries Group (AIG) to learn more.
Although he had been working in the industry for over two decades, Jim was unfamiliar with the Mexican market and its regulations and procedures for doing business, and was unsure of where to start. As he began looking at sites to lease or buy for industrial real estate Mexico, the questions continued to mount. Still, Jim’s entrepreneurial spirit and willingness to take risks motivated him to continue to search for a way to leverage the cost savings international companies in Mexico can take advantage of to become more competitive.
Jim saw right away that American Industries Group understood exactly what his company needed, setting up a meeting with him down the road from General Motors’ assembly plant. With this being his main client, and considering the level of competition and stringent quality standards required to work with a company of this caliber, Jim had no intention of sacrificing this commitment to excellence with his new operations.
As he researched other options for providers of shelter services in Mexico, he immediately found AIG to be head and shoulders above other providers because of its highly-skilled personnel and expertise. It was also clear to Jim that AIG shared his commitment to quality and doing things the right way. He credits AIG for paving the way to a successful launch of his plant in Silao, Guanajuato, Mexico citing how quickly they helped his company adapt to the area’s operational and labor environment by designing attractive benefits packages and setting competitive salaries to reduce turnover.
AIG has played a significant role in the company’s expansion, which is why he has renewed his shelter contract twice to date. The company has recently been named GM supplier of the year, a distinction granted for the outstanding quality and timely delivery.
As the company has grown, its dedicated support of numerous charitable foundations and institutions supporting youth and fighting disease, has also grown—reflecting its commitment to give back to the communities and people where it operates.
In addition to the world-class quality of his facilities in Mexico and the increased competitiveness of operating here, Jim cites the ease of doing business as another significant benefit. Like Ground Effects Ltd.’s bed liners, AIG’s services have given the company protection and a stable and non-slip foundation for growth, taking the worry out of operating in a foreign place and giving Jim the peace of mind to focus on his core business.
Eight years after establishing operations in Silao, Mexico, Ground Effects Ltd. has expanded exponentially in Mexico and worldwide. The company currently has 30 manufacturing plants internationally, including in Windsor (Ontario, Canada), Thailand, South Africa, headquarters in Macomb Township (Michigan, USA).
Jim says that his plant in Silao is always running smoothly—clear proof that he made the right decision to start up business in Mexico.
“We are nowhere near as comfortable in the other two countries we operate as we are in Mexico, and that is because American Industries Group has taken care of us. […] I have never worried about what’s going on in Silao […] AIG takes all the worry out of operating in a foreign country.”
By Rosana Negrete de la Serna | Guanajuato Account Executive | American Industries Group®
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