Mexico means Lower Taxes, Protections, and Reduced Trade Barriers from United States-Mexico-Canada Agreement (UMCA) ? Skilled Low-Cost Labor Force? or its closeness to the U.S? If you’re assessing all these benefits and want to move any part of your business to Mexico, you’re not alone. Thousands of companies presently operate in the United States’ southern neighbor.
To partake in the ongoing success in Mexico, it’s crucial to get a good start. Here are the major points to consider before setting up a shop in Mexico.
Identify your real needs to start your Mexico business
The first and most vital step for manufacturing in Mexico is to clarify your needs. Work with your internal manufacturing team or a production management partner to characterize and capture your product lifecycle specifications.
Thoroughly consider each step from raw materials through manufacturing setup and then warranty and repair. You can save considerable time, increase your chances, and avoid costly mistakes by taking the time to list your needs before you start.
Choose the Right Location in Mexico
The next step is to look at locations. Monterrey may be a good start. In fact, you have to find a region that’s the perfect fit for your industry, employee, and supply chain needs. You might have to build your own factory, explore leasing, or partner with the right contract manufacturer. These choices demand investment and research to decide on the ideal location.
Each region in Mexico will have local economic development experts with the city or state who assist organizations just like yours to find the right fit. In addition, look for other companies that are manufacturing comparable products south of the border.
Get some Legal assistance
Mexican business laws are complicated, to say the least. Before you set up operations, you’ll need to consult a local expert about rules and regulations. Consider employing an attorney and an accountant. Together they can assist you in figuring out the best corporate structure for your business as well as assist you to work through accounting and tax issues.
Depending on the size of the operation you plan to create, you might also want assistance from a consulting firm. That is why Damalion experts assist you for all your legal assistance in Mexico.
Hiring Employees
Finding workers is easy, laying out a trustworthy labor force might be harder. Start by hiring a local manager who can give you valuable understanding. While you’ll find that wages are normally lower in Mexico than in some countries, you may have to provide workers with different advantages. Transportation and meals are occasionally included in employee packages.
Immerse Yourself in the Culture
Then it is time to start working on building relationships, getting a good comprehension of local laws and regulations, and negotiating agreements. Having a conception of the local culture is important at this point and working with someone with a standing local network is helpful. As with any relationship, ensure everybody is in total agreement and try to minimize surprises.
The word confianza (trustworthiness) is a significant one in Mexico and fundamental for success. Finding local people you can trust, as well as reliable employees, will make a huge difference.
Secure Your Resources
Due to the popularity of manufacturing in Mexico, many of the better suppliers quickly saturate their production capacity. Make the ethical choices, but work with your local experts to make them directly and with a sense of urgency.
Having Realistic Expectations
Most businesses do not become successful in a short-term, and the same holds true in Mexico. Setting up operations at a global level usually takes time as well as trial and error to find out what works well for your company. Before setting objectives, speak with other companies that have done well in Mexico. Assess progress occasionally and don’t be afraid to make changes as required.
Legal procedures, conferences, and daily affairs usually take longer in Mexico. It’s common for an activity to take twice as long as anticipated to be carried out. Be patient and it will be easier to deal with these ups and downs.
For those companies considering Mexico operations, many questions come to mind. Where do I begin? What will my investment funds be? How long will it take to set up? – To open your manufacturing business in Mexico with great chance of success, contact your Damalion expert now.
