Open a manufacturing in Mexico
Manufacturers set up operations in Mexico primarily because it lowers their costs. Other countries have low labor costs too, but they don’t have Mexico’s benefits. These include respect for IP, a skilled technical workforce, and a business-accommodating government. For many manufacturers, the biggest advantage is geography because Moving goods from Mexico to distribution centers in the United States of America can be done by road or rail in only hours, or in a couple of days.
Steps to Consider Before Setting Up a factory in Mexico
Assuming you are thinking about moving any part of your business to Mexico, you’re not alone. To appreciate progressing outcomes in Mexico, getting a decent start is significant. Here are the central issues to consider prior to settling in the south of the boundary.
Choosing a Location in Mexico
Mexico’s a big country, and the location options for your business are practically endless. All things considered, most organizations set up activities in the northern or central areas of the country.
It is highly recommended to visit the area you’re considering building your factory before making a final decision, also talk to other companies with operations in the region. Get some information about nearby guidelines, normal work costs, and lawful techniques for getting started.
Facility construction in Mexico
You’ve already chosen the ideal location for your facility based on your workforce needs and cost expectations. Now it’s time to develop a facility to house your operations in Mexico.
Depending on your needs, you’ll either be building a new facility to meet specific requirements or make modifications to a leased property. While new development can guarantee that unmistakable office needs are met, it will take more time than making improvements to a leased property. Many manufacturers find that facilities available for lease fit their space needs and can be appropriately fitted out within a shorter period of time.
Regardless of the type of facility you ultimately choose, your company will likely be involved in some level of construction. During this stage of the project, you will Prepare physical drawings, determine IT requirements, solicit and review bids from contractors, contract utility services, and finally, construct the industrial building and have it inspected.
Hiring Employees
Finding workers is simple while laying out a trustworthy labor force may be harder. Start by hiring a local manager who can provide you with helpful insight. While you’ll find that wages are generally lower in Mexico than in the United States, you may have to provide workers with different benefits such as transportation and meals.
Build your supply chain
The next piece of this puzzle is forming a supply chain to service your Mexico manufacturing operations.
First, you’ll need to source suppliers for your operations. It’s recommended that Routine maintenance, repair, and operating supplies should be procured in Mexico in order to keep costs low.
Next, you’ll have to address customs necessities. This includes classifying and valuing raw materials, components and equipment, reviewing rules and requirements for export, and training personnel in Mexican customs rules and regulations. It is similarly important to research freight and logistics services providers, determine shipping costs, and agreement with service providers.
Production start-up
Once all the previous pieces are in place, it’s finally time to commence production. Although you may be eager to start, it takes thorough planning in the early stages to guarantee that you have a quality manufacturing process in place and the staffing ready to man it. However, working with a competent partner is one sure way to speed up the process. By banking on the knowledge of a shelter company, manufacturers can get rid of many of the common hurdles that get in the way of setting up a factory in Mexico.
Finally, you’re ready to start producing the first batch of shipments.
Having Realistic Expectations
The vast majority of businesses do not become successful overnight, and the same holds true in Mexico. Setting up operations at a global level usually takes time as well as experimentation to find out what works best for your company. Prior to laying out objectives, speak with other companies that have done well in Mexico. Evaluate progress periodically and don’t be afraid to make changes as needed.
These are a few things to consider before heading to Mexico to set up a factory. Research the country thoroughly before setting up shop there and you’ll enjoy endless success.
Contact your Damalion expert today to learn how your company starts manufacturing in Mexico tomorrow.
