Perhaps you’ve heard of all the companies relocating to Mexico and want to understand how to access Mexican manufacturing for your own business. Maybe you’ve considered outsourcing to Mexico in the past and want to know if now is the time. Or it could be you just want to know more about shelter manufacturing and what makes it such an attractive option for manufacturing.
Whatever brought you here, if you’re exploring options to scale your production while keeping costs manageable, shelter manufacturing in Mexico might just be the solution you need. For manufacturers eager to tap into Mexico’s skilled workforce, strategic location, and cost advantages, shelter services provide a streamlined, low-risk way to enter the market.
Here’s everything you need to know about what shelter services entail, how they work, and why they’re such a powerful option for companies looking to access Mexican manufacturing with minimal setup hurdles.
In brief, shelter manufacturing in Mexico is a partnership model that lets you operate in Mexico under a third-party’s legal entity.
This means you sidestep setting up your own entity, saving time, money, and administrative hassle. Shelter companies take on the heavy lifting—handling compliance, HR, payroll, and even certain logistics—so you’re free to focus on your core production goals. You still control your manufacturing processes and product quality, while the shelter company provides the infrastructure and legal cover to make it all happen smoothly.
The IMMEX program, exclusive to Mexico, further enhances these benefits by offering VAT exemptions on temporarily imported materials, machinery, and parts. This special status alone can speed up production timelines and ease the regulatory load, letting you gain immediate access to Mexican manufacturing without drowning in red tape.
Opting for a shelter manufacturing service brings some serious advantages:
This approach offers flexibility for businesses of various sizes, but it’s particularly suited for companies seeking high-volume production without the commitment of full ownership.
Shelter manufacturing starts with finding a reputable shelter provider. You provide details on your production needs—such as volume, timelines, and quality standards. The shelter provider then sets up a plan, sourcing materials, overseeing production, and managing supply chain logistics. Throughout the process, you’ll have direct lines of communication, allowing you to monitor progress and address issues as needed.
The shelter service provider essentially becomes your local arm in Mexico, handling day-to-day operations and regulatory challenges. By the time your goods are ready, the shelter company manages export logistics, ensuring they reach your US base or other destinations seamlessly. Starting out on your Mexican outsource journey is an important step to get right, and a shelter service ensures you nail it.
When you’re ready to explore shelter manufacturing, here are four essentials to keep in mind:
Maybe you’re still not clear on why Mexico is the place to setup an outsource operation. You may want to access Mexican manufacturing, but are still considering Asia for their low wages. Here are some unique advantages about Mexico you should understand.
Mexico’s appeal for manufacturing goes beyond low wages. Skilled labor, favorable trade agreements, and the proximity to North American markets also make it a strategic choice. Free trade agreements with over 50 countries mean lower tariffs and faster transit times for goods. Additionally, access to an experienced manufacturing workforce means you’re not just saving money—you’re also tapping into a talent pool that can meet specialized production needs.
But while shelter manufacturing is ideal for many companies, it’s not the only option for entering the Mexican market. Here’s a quick comparison of other manufacturing entry methods you might also consider:
For businesses seeking a balance of control, flexibility, and reduced risk, shelter manufacturing stands out. It combines the ease of entry with cost savings and operational control, making it an ideal choice for many manufacturers seeking to access Mexican manufacturing seamlessly and profitably.
Shelter manufacturing in Mexico offers a dynamic path forward for US companies. With its built-in compliance support, risk mitigation, and significant cost advantages, shelter manufacturing removes common obstacles and brings Mexico’s manufacturing benefits within reach.
By choosing shelter services, your business can ramp up production in weeks rather than months, keep administrative burdens low, and focus on building a strong foothold in the global market. So, if you’re looking to expand into Mexico, start by evaluating shelter manufacturing. It’s a shortcut to savings, operational efficiency, and streamlined success.
