Is outsourcing production to a foreign country difficult? Many manufacturing executives might say yes. But the truth is working with manufacturing and business specialists like those at El Grande Group can help to greatly simplify the process.
There is a whole realm of opportunity in nearshore manufacturing and the vast potential that shelter services have to offer investors and business owners alike.
Of importance to note right now is that not only is the USMCA offering better intellectual property protection to manufacturers in Mexico but the Comprehensive and Progressive Agreement for Trans-Pacific Partnerships (CPTPP) also offers viable trade opportunities with 11 countries that contain 495 million consumers.
If you are unfamiliar with nearshore and shelter service manufacturing, let our experienced nearshore manufacturing team give you a bit of insight.
What Are Shelter Services?
Manufacturing in Mexico can be seen as risky to business owners and executives that prefer the security of trade within the boundaries of their home country. However, the notion that expanding into Mexico is too complex is a common misconception. Shelter manufacturing companies in Mexico, like El Grande Group, provide simplified processes to outsourcing, production, and the transportation of manufactured goods.
Service shelter manufacturing allows foreign businesses to set up their own manufacturing operations within Mexico – in maquiladoras – which still maintaining control over their core manufacturing functions and production of quality goods.
Besides the economic benefits associated with lower costs of production and minimized financial risks, clients also benefit from the shelter service provider’s ability to act as a liaison in handling regulatory standards and tax concerns within Mexico.
El Grande Group is an established Mexican shelter service provider that can secure facilities, means of production, structural oversight, and support your company with business consultation.
Additional Benefits of Partnering with Shelter Companies
Some of the biggest benefits of working with a shelter service provider include:
- Fast Manufacturing Set-Up
Over the years, Mexican shelter services companies have developed processes that allow for quick set up manufacturing operations. More importantly, however, they have developed networks and supply chains so that your products can make it out to market immediately. Also, shelter companies have already established compliance with lMMEX and international/national manufacturing standards and regulations, so you won’t have to.
- Recruitment of Skilled and Trained Laborers
Part of the process that allows for a quicker set up is the recruitment of a skilled workforce that shelter partners can help clients access. Lower wages with the same quality of production makes manufacturing in Mexico cost-effective, even with logistic costs added.
- Strong Labor Union Relations and Negotiating
Companies are protected from worker retaliation as shelter companies work with labor unions to ensure safe work conditions, fair treatment, and fair wages for laborers. Job satisfaction increases productivity, improving cost-effectiveness.
- Lowered Cross Border Costs
Shelter services allow foreign companies to conduct business in Mexico without the worry of establishing a foreign subsidiary and having to deal with the tariffs and duties of international trade. Billions of dollars worth of products are exported duty-free under international agreements.
- No Required Reporting to Mexican Government
Foreign manufacturers need not stress over cultural barriers, the hassle of foreign affairs, or acquiring assets when shelter partners are there to assist in these manners.
- Time Saved in Management Allows for More Attention to Manufacturing Goals
Shelter partners offer the tools to quickly and successfully set up operations while providing companies the opportunity to focus on innovation for future production.
Trust the knowledgeable and experienced shelter service partners at El Grande Group for your nearshore manufacturing needs.