The reasons to manufacture in Mexico have increased considerably during the last decades, making it one of the best options to move manufacturing activities internationally. Despite the facilities to start manufacturing in Mexico, it is important to create a solid plan before starting, since the Mexican business culture and laws can present interesting opportunities.
By taking known alternatives such as starting operations from scratch, constructing an industrial building or outsourcing part of the operations, it is feasible to find reliable partners that can facilitate your production start-up in Mexico.
What does it take to manufacture in Mexico?
The first step is to assess the company’s needs, starting with identifying the priority to enter the market: it needs to manufacture at the lowest cost, improve quality or improve its legal liability status. By considering and prioritizing, a budget and timeline can follow, as well as in-depth market, cultural and regulatory research.
We recommend visiting different economic regions, especially the Bajío region and the northern border area of Mexico. In these areas manufacturing, supply and distribution activities are facilitated, with a large infrastructure oriented to this sector. In the selected region you should investigate its industrial line of business, transportation logistics and availability of skilled labor.
Subsequently, market entry strategies can be followed, which include the following steps:
- Site selection: Choose the right city to settle in, negotiate favorable terms in the lease or purchase a commercial space, according to your production requirements. At VYNMSA we can help you select the industrial building that best suits your needs.
- Hire security: Most industrial parks have security personnel; however, if you wish to have internal staff, you can hire security personnel or an external provider.
- Procure materials: Understand what your supply chain will look like in Mexico, and develop a strategy for procuring supplies according to your production schedule. Establishing relationships with local suppliers is always a business advantage.
- Hire people: Recruit Mexican managers, engineers, payroll personnel, and workers who can quickly learn your production processes.
- Understand and comply with Mexican labor laws and regulations: Be prepared to handle payroll and tax withholdings.
- Ensure health and safety: Seek to follow the health, safety, and environmental policies established by Mexican law. Have a qualified agent available for government inspections.
- Prepare to import and export: If your industry permits, arrange for transportation and distribution of your goods to ports. Understand Mexican import and export laws, establish shipping procedures and maintain records.
VYNMSA is one of the leading industrial real estate developers in Mexico. In addition, we are able to develop your Build To Suit or custom projects. We actively work with industrial real estate brokers as business partners, we have around 20 buildings of inventory ready for immediate occupancy, which adds up to around 2 million square feet of built space in the northeast and bajio region of Mexico.
Contact us and find out why VYNMSA is your best industrial real estate business partner in Mexico.
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