FAQs About Moving Manufacturing Company to Mexico

At El Grande Group, your manufacturing partners in Mexico, we always more than willing to provide you with the insight and legal advice needed to ensure that you understand everything that you need to know when it comes to expanding your manufacturing operations in Mexico. We recognize that there are plenty of uncertainties and questions when it comes to offshore manufacturing and we want to provide you with the answers to some of these most frequently asked questions.

If you are new to offshore manufacturing and are interested in expanding your manufacturing business into Mexico, please consider the following FAQs:

What are Maquiladoras?

Maquiladoras are offshore manufacturing factories in Mexico. Companies from the United States and all over the globe utilize maquiladoras to manufacture quality products.

How can the El Grande Group help you?

Our company helps clients by supporting them throughout the entire start-up process, helping them navigate Mexico’s laws, as well as by offering manufacturing consultation and support services.

El Grande Group can also assist clients through the Import-Export, Procurement, and Logistics processes. We can also provide HR support.

El Grande also offers a suite of shelter services aimed at reducing the costs and risks associated with moving your company to Mexico. Our industrial park and manufacturing partnership programs mean El Grande Group deals with issues related to industry practices so that you can focus on and control your production plans and inventories.

What are the benefits of manufacturing in Mexico?

Companies that choose to expand into Mexico can experience substantial savings on labor expenses without the loss of skilled laborers. U.S. clients can save under NAFTA, which eliminates duties on approved products.

Many international companies have offshore manufacturing operations in Mexico because of improved profits, lower duty fees, lower labor costs, affordable manufacturing real-estate, access to the American markets, and many other benefits.

Can I ensure quality manufacturing of my specialized products?

Mexico has numerous technical schools and universities that produce trained engineers, technicians, and professional managers that are capable of running efficient manufacturing operations.

What expenses can I expect when moving manufacturing operations to Mexico?

The service rate El Grande Group charges clients depends on a variety of factors including rent and development of facilities, permits and licensing, equipment and materials, freight expenses, paid labor hours, consultation fees, and charges for any additional services requested.

Expanding to offshore manufacturing is an extremely beneficial, cost-effective move, as companies save on numerous costs while expanding their own clientele while still being able to manufacture quality products.

How much does freight transportation cost?

A benefit of manufacturing in Mexico is the close proximity to the U.S. borders that makes importing/ exporting simpler for the client.

El Grande Group is also able to provide clients with personalized on-site logistic services. This in-house provider has over 25 years of experience in logistics engineering services and offers an innovative model that simplifies the supply chain to make your business more competitive. Whether land, air, or sea, GlobalLis Logistics is one of the key components that makes the El Grande Group unbeatable.

Plus, our location in Mexico’s Bajio Industrial Corridor, means a centralized location that provides easy access to NAFTA highways to the Texas border as well as to seaports, cross-docks, and international flight routes – ultimately saving you money on transportation costs.

For specific costs, please contact El Grande Group.

How does NAFTA affect import/ export from Mexico?

The benefits of offshore manufacturing in Mexico is the duty-free imports/export of products under NAFTA. Not only will freight be transported quickly because of Mexico’s proximity to the U.S., but it will allow you to maintain control of your freight while saving money.

What about insurance rates?

Your business will need a variety of insurances in order to comply with Mexico’s maquiladora laws and regulations. The rates for insurance to protect your equipment and operations are similar to those in America. You can possibly extend insurance coverage to operate across the border. Mexico also has quality insurance options with comparable rates.

Are there restrictions on imports and exports from Mexico?

Importing and exporting can become a technically complicated topic. You need the appropriate permits to comply with laws in Mexico. El Grande Group can help you understand these legal restrictions and walk you through the processes of ensuring all your products can be exported to the proper destination.

Many products can be imported from NAFTA countries without duties or restrictions. Inspections are required for products crossing borders. It is important to have proper labeling of descriptions, country of origin, serial numbers, and quantities to avoid fines and delays.

What regulations does Mexico have over the maquiladora industry?

Mexico has strict regulations on environmental concerns to prevent pollution from factory production. You should not move your manufacturing operations into Mexico with intent of more relaxed environmental laws.

There are various licenses required to ensure factory operations are being safely run. In order to get the necessary permits, your facility and products may go through various inspections.

Is it safe to locate my company’s manufacturing site in Mexico?

As in any other country, there is a small presence of violence. However, you can comfortably enjoy the savings and quality production of parts in Mexico safely as long as you are cautious and wary of which areas are best to avoid.

How long does the startup process take?

El Grande Group can help you set up offshore manufacturing operations within 90 days.

After establishing a legal entity with our company in Mexico, you can begin with the regulatory aspects of the start-up. El Grande Group can help you better understand the process of obtaining necessary permits and registration with municipal, state, and federal agencies.

Your facility will need insurance, utility services, and inspections. In addition to this, an inventory of all your materials and equipment will provide the necessary structure to commence manufacturing.

El Grande understands the ever-changing landscape of manufacturing in Mexico, and our years of experience keep us and our clients attuned to the industry’s pulse. If you are looking to move your manufacturing operations into Mexico, call us today so we can help you lay the foundation for a successful future.