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Whitepaper: Different Routes to Mexico Manufacturing

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Whitepaper: Different Routes to Mexico Manufacturing

By now, the strengths of Mexico manufacturing are widely known: growth into new markets, proximity to U.S./Canada markets, free trade agreements, an educated and youthful labor force, and cost-competitive operating costs.

If your company is contemplating Mexico manufacturing to support future growth, you likely have common questions:

  • What type of Mexico operation best matches our needs?
  • Will we be able to retain full control of production?
  • What will our Mexico tax and compliance obligations be?
  • Who can we trust to guide us in Mexico?

Entrada Group’s latest white paper has the answers. We explore the four key routes to Mexico manufacturing, examining the pros and cons of each.

We’ll also cover the Entrada Group manufacturing support platform, which is more of a next-generation Shelter Model, with the goal of helping your company find the right solution for your Mexico manufacturing operations expansion.

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Which path to Mexico manufacturing is best for your needs?

  • Standalone– best suited for companies requiring complete independence and complete control of all aspects of not just production, but all G&A support elements.
  • Contract Manufacturing– for small-to-midsize companies lacking the level of capital and risk tolerance of a multinational OEM.
  • Joint Venture– entails two companies forming a cooperative business venture where resources, risks, rewards, and responsibilities are shared and assumed by the new, combined corporation.
  • Shelter– this model is unique to Mexico, where a company sets up operations within an established Mexico manufacturing community. Here, you maintain full control and responsibility of the actual manufacturing process, but the shelter provider handles all non-production-related responsibilities.

Each can be a solution for different companies, depending on your needs, priorities and corporate setup. Let this resource be your guide.

In addition, our whitepaper also explores key tax elements that every business operating in Mexico needs to understand in order to remain compliant. The tax and compliance implications ofMexico manufacturingare complex and ever-changing. We provide you with an at-a-glance overview of the different requirements pertinent to international manufacturers.

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