Mexicans have long toiled in products as complex as automobiles and medical equipment, too, and now "near-shore" software and high-tech is catching up. To get started making your company's products in Mexico requires
1) Understanding investment rules
2) A grasp of where the best labor is for your business
3) Strong technical guidance
Action Steps
The best contacts and resources to help you get it done
Hire consulting help to get moving fast
A lot has happened in the 10 years since Nafta. Consultants can offer you a quick entry and perhaps get you past the learning curve.I recommend: A couple of the many manufacturing consultants for the country include Made in Mexico Inc. and the Mexico Consulting Group.
Work with the government
State and federal governments in Mexico are anxious to bring jobs over the border. Get in touch with the right agencies early to find opportunites and learn about incentives.I recommend: Mexico's Economy Ministry oversees the assembly plant industry known as the maquiladora sector (now considered a slightly pejorative term). A good place to start is its First Contact counseling service for first-time investors in the country. The U.S. Commercial Service operates a good starting page for understanding doing business in Mexico.
Consider farming out the work at first
If your company is small or new to foreign manufacturing, a simple way to take advantage of Mexican talent is through a subcontract manufacturer or a "shelter" manufacturer.I recommend: In short, shelters offer a quick way to do business in Mexico through an existing company. A detailed explanation of how shelters work is here. Some companies that provide this service include Roche, Tecma, Javid, Offshore Group, Prodensa and QMS. The general site Maquila Portal has a directory of subcontract manufacturers and shelters, as well as a detailed print directory of suppliers.
Find space for your operations
If your manufacturing needs are light or need to be near an urban area, consider an industrial park.I recommend: The Mexican Association of Industrial Parks has a dismaying number of pages under construction in the English version, so read up then click over to Spanish to use maps and directories.
Be sure you can get suppliers on board
If you want to get a real price advantage, you'll need to source the components for your products locally, too.I recommend: MEXonline operations a database of buyers and suppliers who work in the manufacturing business in Mexico.
Ready to go big? Then talk to the big manufacturers for scale
You won't be the first over the border by a long shot. If your operations are of the right scale, it helps to work with established, large contract manufacturers.I recommend: Solunet maintains a big, free contact database for nearly any kind of manufacturer in Mexico. They sell a CD-ROM with detailed data.
Tips & Tactics
Helpful advice for making the most of this Guide
- Moving your production abroad is not a slam dunk. Consider the distance your goods will have to travel, cost of suppliers and the general hassle of foreign operations.
- If you are going to produce in Mexico, consider too selling more there and into Central America. Mexico now has more free trade deals than nearly any country. Take advantage!
- Airfare is cheap. It's worth your while, if the decision is close to being made, to spend some time touring plants. State governors love to show potential investors around.
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