Whitepaper | Entrada Group – Lessons Learned
Our clients tell us that they’ve learned a lot since moving manufacturing to Mexico. By Doug Donahue They are surprised at how many things they just didn’t understand, and how operating under a manufacturing shelter agreement saved them a tremendous amount of money, time and frustration – and even more so with the help of […]
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Our clients tell us that they’ve learned a lot since moving manufacturing to Mexico.
By Doug Donahue
They are surprised at how many things they just didn’t understand, and how operating under a manufacturing shelter agreement saved them a tremendous amount of money, time and frustration – and even more so with the help of Entrada Group as their manufacturing shelter.
Here are a few things our clients have discovered:
There are so many advantages to locating farther south, away from the border.
Some of our clients have had direct manufacturing and shelter manufacturing operations in other Mexico locations, including border cities. Before they moved to those border cities, they weren’t aware of some of the disadvantages. High employee turnover rates are at the top of the list of drawbacks, costing manufacturers a good portion of their potential savings. Another major disadvantage is the low quality of life, especially for their American staff. Many border cities have a high crime rate and put quite simply, are not enjoyable places to spend any amount of time.
The Entrada Group searched Mexico manufacturing locations to find a city that had all the characteristics that are important to manufacturers. We chose Zacatecas. The direct labor costs and the manufacturing environment has very little competition, which keeps turnover rates low. It is also central to suppliers and customers.
And the most unexpected, highly appreciated advantage is the mild weather. It saves our clients tons of money because the buildings don’t need to be heated or cooled and humidity is minimal.
All that, plus the beauty, culture and safety of this urban city are advantages that aren’t on the balance sheet, but are extremely meaningful to our clients.
Manufacturing shelter services offer scalability that give clients the flexibility and control they cannot get with outsourcing or in building their own facilities.
In today’s manufacturing environment, our clients have a great advantage in that they can easily scale their operations up or down. They don’t need a huge up-front investment in facilities. And because the client completely controls their manufacturing, it’s the perfect solution to offshore manufacturing in Mexico.
On-site shared shelter manufacturing gave all our clients the expertise they could not afford by themselves
Entrada Group clients are so busy focusing on setting up their manufacturing operations that sometimes they don’t recognize how vital production support functions are until they are up-and-running. Because our shelter services are on-site, each manufacturer gets the attention and expertise of our highly trained and experienced personnel. If, for example, a manufacturer has a workforce of 200, they could not afford to hire the specialists on their own that Entrada Group provides to run these critical departments every day.
Clients tell us they had no idea how intricate importing and exporting would be. And how hard it is to get it right. It was a risk they didn’t see, and are grateful Entrada takes care of it for them.
Proper importing and exporting practices are key to getting your product to your markets, keeping costs down and satisfying customers. With the current US Homeland Security measures in place, the time it takes to get your goods across the border are firmly impacted by details. You must correctly handle the necessary documents – because any detail that is out of place can put your trucks into border limbo.
With the shared shelter services of Entrada Group, you get our team of highly experienced specialists who handle all the details of your cross-border functions. Additionally, working under our C-TPAT and Mexican Customs certifications, your products can move into the “fast lane” at the border. It takes years and fanatical attention to details and customs brokerage to earn these certifications.
Local connections and experience dealing with Mexican government has been invaluable to our clients
Working in a foreign country has its own set of rules. These are usually hidden until you are behind schedule and over budget. With Entrada Group’s manufacturing shelter service, we have already established important relationships with local, state and federal governments and developed close ties with the local universities, trade schools and secondary schools and understand how to expedite the work with the Mexican utility companies.
Overwhelmingly, our clients tell us they appreciate that the Entrada Group gives a damn. That we are fair, and that they can trust us. Most importantly, they know we understand the problems they deal with. Your Entrada Group partners are Americans with extensive experience in Mexico and manufacturing. We work closely with our clients to expand and migrate manufacturing operations. Each of our clients tells us that Entrada Group’s personal service made their move smarter and easier. They trust us to continue to do whatever it takes to make them successful.