This article is written by Austin Garcia
When it comes to offshoring, nearshoring, or outsourcing the manufacturing function, it can be frustrating to take the necessary steps to ensure your products safety. Shelter Manufacturing simplifies this daunting process, and for Mexico, it’s a huge hit.
Shelter services provide the set up processes as well as guide you through all the necessary hurdles. They mainly handle tasks such as securing permits, registering the foreign entity, providing legal and labor compliance, and managing human resources and payroll. With these crucial administrative and regulatory aspects delegated to experts, manufacturers in the US, Mexico, or elsewhere can concentrate on their core production activities. Shelter manufacturing has been a part of the Mexican economy since the 1960s, but it became more popular after the North American Free Trade Agreement (NAFTA) in 1994, which eliminated trade barriers between the US, Canada, and Mexico.
You may be asking, why use a shelter service, what benefits do I gain? Using a shelter service allows you to have an efficient start up due to the established networks already set. It saves you money by helping outsource non-core functions such as HR and compliance so companies can reduce overhead expenses. It allows access to skilled labor that is efficient and cost-competitive. Lastly, they provide a layer of risk mitigation, helping you navigate through the complexities of operating in a foreign country more safely by working alongside the local shelter providers and their warehouses.
With the close proximity to the consumer, market access, and cost saving, it’s no wonder over the years, the use of a shelter service has been a staple among not only Mexico but for many other countries in the world now.
Here at TradeFlex we provide business model analysis, manufacturing management strategies, duty tariff optimization , compliance management, regulatory consultation, duty reduction programs, supply chain and tariff engineering, and cross-border solutions. With over 30 years of expertise, we help businesses land softly in Mexico, ensuring efficient, compliant, and cost-effective cross-border operations. Come work with us today at
https://trade-flex.com.
