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Entrada Group Whitepaper: Explores Different Routes for Foreign Manufacturers to Establish Mexico Operations
October 3, (Austin, TX) – Well aware of the country’s strengths as a regional manufacturing powerhouse and platform for growth, U.S.-based producers of all size, ranging from OEMs down to Tier Two and Tier Three suppliers, continue to establish their own operations in Mexico.
While the country’s advantages are well known, the preferred strategy for launch and ongoing support of Mexico operations will vary, generally falling into one of the following four categories:
- Standalone – a “go it alone in Mexico” method
- Contract manufacturing – a hands-off approach
- Joint venture – where finding the right partner is essential
- Shelter services – where control is retained yet risk is spread around.
These four routes to Mexico, their advantages and disadvantages and the type of manufacturer they match best is the subject of the latest whitepaper from Entrada Group, a firm that enables foreign manufacturers to establish and run their own Mexico operations, with less cost and risk.
“Mexico manufacturing continues to thrive and companies that don’t yet have a Mexico production footprint are being pressured to set up there,” says Doug Donahue, Entrada’s V.P. of Business Development. “Yet there is no single best way to enter Mexico, and each of these four routes has advantages and disadvantages depending on your corporate structure, size, expertise and urgency. We hope this resource can help companies identify the path that best suits their needs,” he added.
Entrada’s whitepaper can help foreign manufacturers considering Mexico better understand their options and become more educated on the key issues, including:
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- Which routes sacrifice control for cost savings or speed
- Why the standalone model is too costly and time consuming for small-to-midsize manufacturers
- The tax implications of each of the four routes
- The wide range of shelter providers in Mexico and their pros and cons
- How Entrada Group, a next-generation shelter provider, varies from a traditional shelter operator.
Note to editors: The whitepaper is available free of charge to your readers, but contact information is requested. We can send editors the full whitepaper on request.
About Entrada Group
Headquartered in Texas, Entrada Group partners with international manufacturers seeking to enhance their competitiveness in the global market by swiftly and easily establishing a cost-competitive production facility in Mexico to serve North and South American, as well as European, markets. On behalf of the manufacturer, Entrada Group assists with the strategic, legal and practical requirements of setting up operations in Mexico, and also provides ongoing production support (General & Administrative) services, which leaves the client free to focus fully on their key competency: manufacturing great products.