Your company has made the decision to establish a manufacturing presence in Mexico. Now what?
You know you need to partner with a reputable advisor in Mexico because they can provide the site selection services you need to get your operations up and running as quickly, smoothly, and economically as possible.
Finding the right local partner that you can trust and lean on to take care of the details of finding the manufacturing location you need helps you stay focused on your core business during the reshoring process. They can ensure that all of the many moving parts of this venture come together for a seamless and successful launch.
Evaluating a Local Partner
Even though every company and situation is different, there are some core considerations that should be taken into account when evaluating any organization that provides site selection services. This information can help narrow down the search.
Cost is Always a Top Priority
The cost of securing a building is relatively straightforward. It might include permitting, construction materials and labor, commissions, etc. However, there is more to getting a manufacturing site up and running than finding or building a plant.
A reputable advisor in Mexico will have a large menu of services to offer potential clients. Depending on the organization, they should be able to help with labor and payroll, taxes and accounting, administration, and pretty much any other aspect of running a business in Mexico.
For example, running a manufacturing operation under the umbrella of a shelter services company allows a company to import certain raw materials and equipment for four years without paying VAT tax which can save a manufacturer considerable amounts of money. This benefit may not be available to companies who decide to set up a standalone operation on their own.
Ask for a clear definition of what items are included in any partnership with a Mexican organization that offers site selection services. The partnership agreement should be customized to the manufacturer’s specific needs and also allow you to compare the services and prices of all of the candidates being considered.
When Will the Site Be Up and Running?
There is no simple way to know exactly how long it will take for a manufacturing site to be operational because there are many moving parts to this type of project. That said, using an experienced and reputable partner such as Tetakawi will go a long way in expediting the process. In fact, they have been able to secure sites and get an operation staffed and functional for clients in as little as thirty days. On the flip side, foreign entities that have tried to set up production on their own are known to get mired down in the process for considerable lengths of time.
Look Into Their Background
Ask the Mexican company what their experience is in your particular industry and any other specialties they have. They should be able to give you references that you can contact as part of your due diligence. In addition to industry niche, you will want to know if they have worked with organizations that are similar to yours in terms of size and culture. Also, ask them what makes them different from other companies offering similar services.
Even though each situation is different, having relevant expertise can make a difference.
Opportunities for a Long-Term Relationship
If a company is planning on making a long-term commitment in Mexico, it may be wise to see if the site selection partner you are choosing offers additional services that will help you thrive well into the future.
For example, ongoing advice and support can run the gamut from legal and trade compliance, tax and accounting, recruiting, hiring and training personnel, human resources protocols and retention strategies, customs, environmental compliance, and much more. These additional services can help organizations reduce the risks of operating in a foreign country where they may not be familiar with the compliance and reporting requirements of the various government agencies.
For more than three decades, Tetakawi has helped hundreds of companies from around the world reap the many benefits of operating in their country. They offer a number of different assistance models for their clients to help them secure the best manufacturing site possible and keep their business running smoothly and without distractions.
Conclusion: How to Find the Right Manufacturing Site in Mexico
To find the right manufacturing site and reap the many advantages of reshoring to Mexico—cost effectiveness, quality production, and proximity to large American markets, to name a few—it is essential to partner with a local advisor who has the knowledge and expertise to get you up and running in a short amount of time while minimizing startup costs and any potential road bumps to the plan.
