The Shelter Manufacturing Program: A Competitive Advantage for Foreign Companies Coming to Mexico

The Shelter Manufacturing Program is a government-supported scheme designed to facilitate the establishment of foreign companies within Mexico. The program allows companies to forego establishing as a foreign subsidiary by setting up a maquiladora program to start operations quickly in Mexico. Also, the Shelter Program enables foreign companies to manufacture in Mexico without the high start-up costs and delays by using a trusted partner like Tecma.

This program is a reliable bridge, helping international corporations smoothly navigate Mexico’s intricate regulatory processes and labor laws. Over the years, it has become a cornerstone of foreign investments in the nation.

One of the shelter program‘s primary benefits is creating employment opportunities for Mexican citizens. Through the establishment of manufacturing facilities, foreign companies have been able to hire local workers and provide them with stable and well-paying jobs. This has reduced unemployment rates and improved the standard of living for many individuals and families in Mexico.

Moreover, the shelter manufacturing program has promoted technological advancements and knowledge transfer in Mexico. As foreign companies bring their expertise and advanced technology, Mexican workers can learn new skills and gain valuable experience. This has contributed to Mexico’s workforce’s overall growth and development, making it more competitive globally.

The Shelter Manufacturing Program has yielded remarkable success stories for foreign companies across various sectors, from automotive manufacturing giants to technology startups and even minor operations. Companies like Ford, BMW, and Samsung have established their presence in Mexico, benefiting from its strategic location and cost-effective operations.

Another significant benefit of a shelter  Manufacturing program is its contribution to Mexico’s export industry. With the establishment of manufacturing facilities, there has been a substantial increase in the production of goods for export.

Furthermore, the shelter program has helped to diversify Mexico’s economy by attracting investment from various industries such as automotive, aerospace, and electronics.

Some of the benefits of the Shelter Program include:

1. Strategic Location and Access to Markets

Mexico’s strategic location is a crucial advantage for foreign companies. Positioned at the crossroads of North and South America, it offers unparalleled access to the vast consumer markets of the U.S., Canada, and Latin America. This strategic position significantly reduces transportation costs and enhances the competitiveness of foreign firms.

2. Cost-Effective Operations

The Shelter Manufactring Program in Mexico allows foreign companies to leverage cost-effective operations. Through this program, companies can outsource essential functions such as human resources, legal support, and manufacturing to specialized Mexican service providers, like Tecma, reducing overheads and increasing cost efficiency.

3. Skilled Workforce and Expertise

Mexico boasts a skilled and well-trained workforce, making it an attractive destination for foreign companies seeking quality talent. Additionally, many employees are bilingual, which facilitates smooth communication and collaboration. Mexico’s educational institutions and technical schools continue to produce steady skilled workers, particularly in critical fields such as engineering and manufacturing.

4. Streamlined Regulatory Compliance

Mexico has a complex regulatory environment, which can be daunting for international companies. However, the Shelter Program simplifies this process, offering expert guidance and local support to ensure compliance with Mexican regulations. This minimizes legal and bureaucratic hurdles, allowing foreign companies to focus on their core business operations.

5. Economic Incentives and Tax Benefits

The Mexican government offers a range of economic incentives to attract foreign investment, including tax benefits and duty-free zones. These incentives encourage foreign companies to establish operations in Mexico, further promoting economic growth.

The Shelter Program has been modified over time. Still, as it continues to evolve and adapt, it is expected that it will continue to contribute significantly to the country’s economic growth and development in the years to come.

To get all the advantages of the Shelter Manufacturing Program, foreign companies must find an experienced company as their partner. The most reliable company in Mexico to offer shelter services is Tecma. Using Tecma’s Shelter Services, manufacturers can reduce their production expenses by over 50% when nearshoring their manufacturing operations in Mexico. Foreign companies supply the necessary raw materials, machinery, and manufacturing expertise, while Tecma oversees all other operational aspects. Schedule a consultation with one of our Shelter Program specialist and start leveraging the benefits of manufacturing in Mexico.