What You Need to Know When Choosing a Site for Your Manufacturing Company in Mexico
As one of the premier international hubs for manufacturing, Mexico offers plenty of opportunities for companies looking to expand their operations. Whether it’s reaping the benefits of near-shore manufacturing or investing in an offshore plant, there are plenty of questions and uncertainties that can arise when growing your company in a foreign country.
At El Grande, we offer companies the manufacturing solutions they need to successfully navigate a foreign landscape. One of the most challenging steps for many manufacturers seeking to grow in Mexico is site selection. While this is a pivotal step in the process of becoming established, it doesn’t have to be such a grueling process.
Let our expert industry consultants provide you valuable insight into the optimal choices for location.
There are a number of variables that need to be taken into consideration when selecting your manufacturing site in Mexico. One of the most important factors is delivery time. Proximity to customer base should be weighed along with the potential to serve other Tier I and Tier II manufacturers in the future.
El Grande’s location in the Bajio industrial hub – found in central Mexico – offers access to an International Distribution Network of highways, railways, international airports, and seaports that allow for efficient transportation of international shipments.
Choosing a site location in central Mexico also means access to a huge number of OEMs that have already established themselves in the region. This area is also a huge market of over 70 million consumers within a 250-mile radius.
Alongside delivery time is accessibility. The ease of access to your facility benefits your company in multiple ways:
- Corporate visitors and team leaders can readily visit operations.
- Accessibility improves transportation costs, delivery times, and customer satisfaction.
- Accessibility enhances brand awareness and improves relations with OEMs.
It is worth noting that El Grande is located less than 125 km from 6 major OEMs including GM, VW (Silao), Ford, Mazda, Toyota, and Honda.
Site selection should also be determined by labor availability. As manufacturers require skilled and unskilled laborers, local populations must have sufficient resources to fill in these jobs. Universities in the Bajio industrial region are graduating 5,000 engineering and technical students per year, providing manufacturers in the region with an ample supply of laborers.
Every region in Mexico varies in terms of labor qualifications, costs, and availability, thus you will want to do a bit of research to ensure that you are choosing the ideal location for your manufacturing company.
Facilities & Infrastructure
The value of an excellent facility cannot be overstated. This is especially true for investors who are determining whether or not they should buy or lease land to build their own facility. Having a thorough understanding of your company’s goals, budgets, technical facility specifications, and product will help you when deciding what your real estate needs are.
Infrastructure will also play a key role in the shipment of your products. It is important that the facility of your choosing has great connectivity with markets, transportation infrastructure, and accessibility to raw materials for the facility.
El Grande’s 151-acre industrial park houses 22 units, 3 water wells, wastewater treatment facilities, Axtel fiber optic internet, along with parking, security, a medical facility, a child care facility, employee busing, athletic fields, and much more. With a focus on economies of scale, we are able to leverage service like utilities and offer competitive pricing.
Added Incentives & Other Advantages
The right partner at the right industrial park is going to ensure that you reap the benefits of government-sanctioned incentives and long-term support.
Because of the country’s desire to develop itself as the world-class manufacturing center, the Mexican government offers a number of tax-based exemptions and incentives, quality certifications, workforce training programs, and many other perks to help you start your manufacturing agency on the right foot.
Additionally, the ideal site location (industrial park) will improve operational logistics by already having a solid relationship with local suppliers. Participation in regional Maquiladora Associations and Supplier Development Associations are key advantages that can greatly benefit your growing company.
Manufacturers looking to expand their operations in Mexico should also keep in mind union-laws within the region they are choosing to establish themselves in.
One important element to recognize about El Grande is that we are way more than just a shelter, we are co-investors. Through our consultation and support services, our expert team of international businessmen will provide you with the guidance you need to help you make key strategic decisions to maximize your economic gain.
A few of the services we provide to partners who are looking to grow their automotive manufacturing in Mexico include:
- Zero equipment capex to start operations immediately.
- Financial and accounting services with monthly analysis and reports.
- Labor relations and union management.
- Expatriate relocation services.
- Asset and wealth management.
- Legal advisory services.
- Guidance on meeting Mexico’s tax and certification requirements.
- Flexible shelter services
- And much more…