Shelter Program in Mexico

In manufacturing, a shelter program refers to a business model where a company sets up operations in a foreign country by partnering with a local manufacturing service provider. The local partner assumes responsibility for managing all aspects of manufacturing, including facilities, labor, and logistics, while the foreign company retains control over design, engineering, quality control, and intellectual property. This type of arrangement allows the foreign company to establish a presence in a new market without having to invest in or operate its own manufacturing facility.

There are several benefits of opting for a shelter program in Mexico. Some of them include:

1. Cost savings: By partnering with a shelter program, foreign companies can save on the costs of setting up their own manufacturing facility in Mexico. The shelter program already has the necessary infrastructure, facilities, and labor in place, reducing the initial investment required.

2. Faster market entry: The shelter program allows foreign companies to quickly establish a presence in the Mexican market without the need for extensive setup time. This can accelerate market entry and enable companies to respond to market demands more rapidly.

3. Local expertise: The shelter program provider has local knowledge and expertise, which can be invaluable for navigating the regulatory landscape, understanding labor laws, and managing logistics. This can help foreign companies avoid costly mistakes and streamline operations.

4. Risk mitigation: The shelter program assumes certain risks associated with manufacturing in Mexico, such as compliance with local regulations and labor laws. This can help foreign companies reduce their exposure to legal and regulatory risks.

5. Focus on core competencies: By partnering with a shelter program, foreign companies can focus on their core competencies, such as design, engineering, and quality control. They can leverage the shelter program’s expertise in manufacturing and logistics, allowing them to concentrate on what they do best.

6. Intellectual property protection: The foreign company retains control over its intellectual property, ensuring that its proprietary technology and knowledge are safeguarded.

Overall, opting for a shelter program in Mexico offers cost savings, market entry advantages, local expertise, risk mitigation, and the ability to focus on core competencies. It can be an attractive option for foreign companies looking to expand their operations into Mexico.

There are several top shelter programs in Mexico that foreign companies can consider. Some of them include:

• TECMA GROUP

• TETAKAWI (formerly The Offshore Group)

• CO-PRODUCTION INTERNATIONAL

• GRUPO PRODENSA

• AMERICAN INDUSTRIES IVEMSA (International Virtual Employee and Manufacturing Services)

• TACNA SERVICES

• NOVALINK

• LABOR MEXICANA

These are just a few examples, and there are other reputable shelter program providers in Mexico as well. It’s important for companies to research and evaluate different options based on their specific needs and requirements.

Most Companies use Shelter Services as the first step to start their operations in Mexico and as they become familiar with Mexican Laws and culture, often decide to go SOLO.

If you are curious about manufacturing in Mexico and think that a Shelter Program is a good fit for you, let us know! Here in La Revista Binacional, we are building businesses without borders. Send all your inquiries to info@larevistabinacional.com We are more than happy to help you!