Recently, the Shelter Committee of Mexico’s National Association of the Maquiladora and Manufacturing Export Industry (INDEX) held a webinar discussing the benefits and opportunities the country offers in this sector. As the largest private manufacturing association in Mexico, the organization works to advance and promote the image and interests of maquiladoras and Mexico manufacturing. As part of these efforts, the association works closely with federal and state governments to offer incentives to international companies in Mexico, analyzes the environment for the Program for the Promotion of the Manufacturing, Maquiladora and Export Services Industry (IMMEX) by carrying out market studies needed in the industry, and lobbies to improve the program’s legal and economic conditions.

Specifically, INDEX’s shelter committee works with government, educational institutions, and industry leaders to develop industry, infrastructure, and attract foreign direct investment in Mexico. Several leaders in the shelter industry were invited to speak at INDEX’s recent webinar, including American Industries’ board member, Alejandro Lara, who shared information about global sourcing trends and the challenges and opportunities these represent in a rapidly-changing international panorama.

International companies in Mexico

This year will be remembered as a year that turned the world and industry upside down, exposing the vulnerabilities of companies worldwide, especially those with a high dependence on China. This has meant that businesses and entire industries have had to rethink and transform their global supply chain models. With the high degree of internationalization across almost all industries, especially in the electronic manufacturing, machinery and equipment, textiles, and automotive industries, rather than looking at these events as the end of globalization, many businesses are seizing the opportunity to reinvent themselves and emerge as leaders by finding innovative solutions to unprecedented challenges.

An increasing number of factors have come together to cause the short-term disruptions of this year, including US-China trade relations, changing tariffs, cost increases, travel restrictions, data flows and breaches in cybersecurity and investment restrictions on foreign companies. Having the flexibility to respond quickly to these events is key, and Mexico offers a host of opportunities that can help companies achieve this.

Its geographic location allows companies to adopt a regional strategic approach and take advantage of the economic benefits of being able to reach markets, develop product prototypes, implement design changes and replenish inventories in a shorter time, in addition to an 80% time savings on shipping and 75% on transportation costs compared to China.  When we also consider the certainty it offers in trade policies and its adaptive and highly-skilled labor force focused on enhancing productivity, it becomes clear why more and more companies are looking into how they can start up operations in Mexico.

Start up operations in Mexico

The first step is to contact a trusted provider of shelter services in Mexico. They have the information and expertise to analyze the costs and benefits involved when looking to start up business in Mexico. They will guide you through the entire facilitation process, from a business case analysis, to site selection in Mexico and finding the best space solutions to ensure your operation is successful, compliant with all Mexican laws and tax requirements, and even in managing day-to-day customs and transport logistics.

To find out more about the benefits of manufacturing in Mexico, you can watch the webinar recording and download the resources used here.


By Isaías Rivera | Mkt & Business Development Manager | American Industries Group®
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