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Today many companies are analyzing ways to expand their business, create a more resilient supply chain, and adapt to market changes. In doing so, it is key to take a strategic, analytic, and data-based approach. One option companies across the globe are considering as part of this analysis and restructuring is to relocate manufacturing operations to more cost-efficient areas that allow them to increase resiliency. The most logical place for this—especially for businesses with a customer or supply base in North America—is Mexico.
Mexico manufacturing offers a host of advantages, including ensuring flexibility, dynamism, and a global balance by optimizing capabilities; trade certainty gained with the implementation of the USMCA trade agreement; an adaptive and highly-skilled labor force that has a long history of ingenuity and adapting to changing technologies and policies; and a focus on enhancing productivity in a cost-effective environment with a strong dollar compared to the peso.
Investors also understand that it is no easy task to relocate or start up business in Mexico or any other foreign country. In order to take advantage of the many benefits it offers, companies will be required to successfully navigate a number of new and unknown challenges that are most times far outside their comfort zone and area of expertise.
Fortunately, there is an option that allows international companies in Mexico to set up operations in a way that will enable them to focus only on what they do best—working with a trusted provider of shelter services in Mexico. This allows companies to leverage a shelter providers’ local experience, connections, and knowledge to deftly handle all the administrative, legal, and regulatory matters they are ill-equipped to handle. This includes tasks such as obtaining permits and licenses, ensuring legal, tax, and labor compliance, setting up electricity and other utilities, and in general, guaranteeing a smooth transition to a place with an entirely different culture and language.
By passing off these time-consuming tasks to a shelter provider, companies will be able to drastically reduce the time it takes to start up operations, nearly eliminate the learning curve (and the lost time and cost associated with this), reduce risk and liabilities regarding legal, labor, tax and trade matters, and ensure full compliance with Mexican legislation.
Furthermore, companies will maximize savings by taking advantage of the shelter service providers’ economies of scale while having access to experienced administrative personnel from day one and maintaining complete control over their operations. This ensures their focus is where it should be—on their own production, service, quality, delivery, and technology.
Upon analyzing ways to continue expanding and ensuring long-term profitability in these challenging times, companies in various industries, including the automotive industry Mexico and electronic manufacturing Mexico, and many other sectors, are reaching the same conclusion: Mexico is a logical choice. By having a trusted shelter services provider on your team to take care of everything not related to a company’s area of expertise, they can rest easy knowing that the transition will be as smooth, quick, and cost-effective as possible.
By Alma Rosa Ortega López | Institutional Relations | American Industries Group®
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