Manufacturing Operations in Mexico:
Under what structure do manufacturing companies operate in Mexico?
Depending on your specific circumstances and business case, there are multiple options to operate in Mexico. You can partner with someone for manufacturing or shelter operations or you can start your own dedicated entity for production.
Partnerships, including Prodensa´s shelter and inshoring models, provide the least exposure and risk to operating in a foreign country. Stand-alone operations preserve your know-how and give you the highest level of control and liability over your operation.
If you sell your product to the Mexican market or need to invoice in Mexico, you will most likely have a profit center operation. If you plan to have a “maquila” operation where the revenue of the finished export product will be paid by the parent company, you will most likely have a cost center.
Give us a call and let us walk you through the pros and cons of the different operating structures in Mexico. We can provide you with comparative cost models so you can make the most informed decision for your future project in Mexico.
Author: Ricardo Martinez, Business Intelligence Director
Interested in learning more about how to operate a manufacturing facility in Mexico? Download our free E-Book Manufacturing in Mexico: A Start-up Checklist. Be on the lookout for the launch of the full version, coming soon!
- Section 1 – Mexican Operations
- Section 2 – Operational Compliance
- Section 3 – Key Milestones and Checklist
- Section 4 – Transition to Mexico
Contact us for more information.